Lease/rental negotiation etiquette?

Question

Hey all,

Curious to know, as prospective tenant, what the 'etiquette' is as far as lease and rental negotiation for those who seek to negotiate a lease. Do you typically apply to rent first, review the lease, and then negotiate the price down after reviewing the lease but before signing? Also, how much do you typically negotiate down? And based on what?

Anthony Wick · Answer

@Jeremy LeeI negotiated a lower rent once for signing a 2 year lease with my landlord. Conversely, I have had tenants ask for a lower rent. They ask politely. I politely decline to negotiate the rents that I charge. So, what’s my point? Potential tenants can always ask. Landlords can always accept or decline.

Jeffrey Edwards · Answer

I think there a few things you could hit on here. If you are ok paying what is being asked as far is monthly rent (that would be your worst case scenario), I would view the property and then make an application if you really liked the place. Now I'm sure that application would come with a fee and that's why I suggested to make sure you are ok with paying what asking rent is because worst case scenario you know going in what rent would be if they are unwilling to negotiate. Now comes the good part....if you are a well qualified tenant as far as credit score, income, background, etc., use that as leverage to negotiate a lower rent amount. I think if you don't have the higher qualifications, it's not as easy to negotiate on price. As far as how much, it all depends on the market. You could possibly pull some local comps that have recently been rented, that are similar from Zillow and show them that they are over priced and based on your great qualifications, you think a lower price is justified. All in all, it never hurts to ask but you have to have some sort of something to offer in return - a great tenant or comps that justify a lower price.

Theresa Harris · Answer

@Jeremy Lee Renting a house is not like buying a house or a car. The price it is listed for, is the price you are expected to pay. If I had a person applying to rent a place from me and they wanted to negotiate (before or after the lease was viewed), I would put that application aside. The place should be priced appropriately for what is included (eg with or without appliances).

Michael Noto · Answer

The most leverage you will have in this situation is showing the landlord how qualified you are through your application. No landlord worth their salt is going to have even a conversation about lowering rent until they see who they are dealing with from an applicant quality standpoint. Just apply knowing you are OK with paying the marketed rent and then negotiate from there.

Anthony Wick · Answer

@Jeremy LeeI’d say rents were fair, I just asked for $50 month lower for a two year lease. I was a desirable tenant with good qualities so she agreed. It was their only duplex rental. They ended up selling a couple years later. I set my rents to fair market value, so I don’t feel the need to negotiate downward. There are enough applicants out there that I wouldn’t lower the rent.

Jeremy Lee · Answer

Thanks - was the landlord charging slightly higher than market rents when you negotiated lower? Or was it at the average fair market rent and you negotiated lower due to the longer lease?

Theresa Harris · Answer

Look at the other places listed for rent in the same area and you will get an idea of what is the 'normal' price for say a 3 bed, 2 bath house. Any place I've ever rented or being on the other side as a landlord, the price I see is what is paid. If I think the rent is too high, I wouldn't look at the unit.

Jeremy Lee · Answer

Makes sense. I guess what I'm trying to figure out is the best way to find out if what's being asked for is fair or not factoring both with and without appliances. For example, there was one place that was on the market (and still is) for above regular market rent at $3200. They lowered it to $3000 and still not much traction. We initially negotiated down even less but then found out more about the landlords themselves and realized it would be a difficult relationship for multiple reasons unless contract terms were changed, which they didn't agree to so we dropped it. In this case though, they obviously priced it way too high (as well as other potential tenants probably getting a bad feeling about the landlords) - the point is that not all landlords are going to price something "fairly" or "appropriately" out of the gates. AND these landlords were using an agent, in which case you'd think he would have advised them accordingly! It seems every rental unit is unique and different both in of itself as well as the landlords you deal with. Unless we're talking about an apartment complex owned by the same group where all the units are 100% identical (which isn't the case in terms of places I'm looking at). Seems like it's a mixed bag in terms of landlords who are willing to negotiate. I mean, it doesn't seem like it would hurt to ask even before applying if there's a willingness to negotiate right? (versus throwing numbers around from the get-go prior to or after applying)

Jeremy Lee · Answer

Thanks! Was also curious about places that have appliances like a refrigerator, washer, dryer etc versus one that doesn't and if lack of appliances is another point that can be leveraged to negotiate rent down?