How Renters Can Work With Their Landlord to Keep Rental Costs Down

Renters often assume that the asking rent and lease terms are set in stone, but that's not always the case. How much negotiating power a renter has depends heavily on the individual property, how long it has been available, and the level of competition from other renters.

Pay Attention to How Long the Rental Has Been on the Market

One of the biggest indicators of negotiating power is how long a property has been sitting on the market.

In highly competitive rental markets, we're still seeing bidding wars for desirable properties. If a landlord has several qualified applicants competing for the same apartment, a prospective tenant generally has very little leverage to negotiate the rent downward.

The situation can be completely different when a property has been available for several weeks without being rented. Every additional week of vacancy costs the landlord money. At that point, the landlord may be more willing to negotiate the monthly rent, move-in date, lease length, or other terms to secure a qualified tenant.

Existing Tenants May Have More Leverage Than They Realize

A good existing tenant can be valuable to a landlord. Replacing a tenant can mean lost rent between leases, cleaning, preparing the property for a new tenant, advertising, showings, screening applicants, and uncertainty about the next tenant.

Tenants approaching renewal should consider starting the conversation early. A renter with a strong payment history may be able to negotiate a smaller rent increase in exchange for renewing early or committing to a longer lease.

Negotiate the Total Cost, Not Just the Rent

Monthly rent isn't necessarily the only expense worth discussing. Depending on the property and lease, renters may be able to negotiate costs or terms involving parking, storage, pets, utilities, move-in timing, or lease length.

Roommates can also significantly reduce housing costs by dividing rent and utilities among more people. However, renters should never add occupants without making sure they're permitted under the lease and applicable local requirements.

Communicate With Your Landlord Early

Good communication can save both renters and landlords money. Tenants should report legitimate maintenance problems promptly rather than allowing a small issue to become a larger and more expensive problem.

Renters should also understand what the lease requires of both parties. They shouldn't make repairs, alterations, or modifications to the property without the landlord's permission. When something needs attention, communicating with the landlord early is generally the safest approach.

Don't Treat Every Landlord-Tenant Conversation Like a Fight

One of the biggest mistakes renters make is approaching negotiations as though the landlord is automatically an adversary.

A productive negotiation focuses on what benefits both sides. A reliable tenant gets more predictable housing costs, while the landlord avoids vacancy and turnover.

Another mistake is waiting until the last minute. A tenant who wants to renew should begin the conversation before the lease is about to expire, giving both sides time to discuss the terms.

Ultimately, negotiating power comes down to supply and demand. If a rental just hit the market and five qualified tenants want it, asking for a substantial discount probably won't get very far. If the property has been vacant for a month with limited interest, the renter may be negotiating from a much stronger position.

About the Author

Daniel Amodeo is President of Amo Realty, an independent real estate brokerage founded in 2007. Amo Realty has offices across 14 states and services 23 metropolitan areas across the United States.