There are two types of people in the world. One who accepts prices for what they are and another who views price tags as a starting point to barter. If your hands just started to sweat, you already know which category you are.
But haggling sale prices, including for huge expenses like rent, can save your budget. Negotiating rent takes finesse, but it can be well worth the effort. At the end of the day, what's the worst that can happen? They just say no. Here’s how it’s done.
Research the Market
Search the area for comparable rental listings. Look for similar square footage, number of bedrooms/bathrooms, amenities, and condition. From here, you can get a sense of fair market value for the rental property you found, giving you ground to start your negotiation.
Recent renovations and upgrades can cause landlords to increase rental prices. Certain features like location and access to a gym, pool, golf course, or proximity to local hot spots might explain the rental price.
Newer updates within the property often indicate that the landlord is working to increase the value—making it less likely that they're willing to negotiate. But the renovations might also compensate for areas where the property falls short. If you can pinpoint what areas the landlord might see as flaws, you're more likely to find room for negotiation.
Similarly, if the rental is outdated, the landlord likely knows it might fall short by comparison and may be willing to lower the rent to reflect this. If they’re a military landlord, it may also be worth mentioning your Basic Housing Allowance (BAH) as a comparison for the cost of living in the area.
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Be Strategic
If fewer rentals are available than tenants in pursuit, you'll find less negotiating power. If the opposite is true, tenants carry more weight. While you can't expect the housing market to 180 overnight, watch for small fluctuations like quiet winter months or post-PCS season. An empty rental during these lulls in the year can make landlords more willing to bend and flex to secure an interested tenant.
Discuss Lease Terms
Dig into the details if the landlord isn't willing to discount rent. Offer your handiwork on an outdated rental to help increase the value of the rental for the landlord. If the rent includes utilities, consider negotiating otherwise. They likely increased rent to accommodate higher utility usage. But, if you can live more conservatively, you may be able to reduce water and electricity usage and bring the bills down. If the hassle of transferring names is a deterrent, ask if you can pay exact utility costs in addition to a lower set rent each month.
Pitch Yourself
Why should the landlord choose you over another person who just submitted their application? You're negotiating reduced rent, but you need to sell them on you. Reference letters are a great way to show that you're a hassle-free dream tenant and will make this negotiation worthwhile. Include that you don't throw loud parties and are military, with job security and regular pay checks.
Pro Tip: Get negotiation terms in writing.
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How to Negotiate Rent FAQs
1. When is the best time to negotiate rent?
It's best to negotiate rent before your lease renewal date, at the end of the month, or during periods of lower demand in the rental market, such as winter.
2. What should I research before starting the negotiation process?
Research local rental rates for similar properties in your area, the current rental market conditions, and how the conditions of the property you're pursuing compare to others on the market. Knowing these factors will help you make a strong case.
3. Can I negotiate rent if I have bad credit?
Focus on highlighting your strengths as a reliable tenant, such as a stable income and positive rental history. Offer a larger security deposit or a co-signer to mitigate the perceived risk to the landlord and make your case for a better rent rate or terms.
4. How can I demonstrate that I’m a valuable tenant?
Highlight your positive rental history, timely rent payments, stable income, and other aspects that make you a desirable tenant. Providing references from previous landlords can also strengthen your position.
5. What should I include in my rent negotiation proposal?
Include evidence of comparable rental rates, your reasons for requesting a lower rent (or better terms), and any alternative offers you’re willing to consider. Be clear and concise.
6. How should I approach the landlord with my negotiation request?
Approach the landlord respectfully. Schedule a meeting or send a well-written email outlining your request and supporting evidence. Ensure a positive and collaborative tone.
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7. What if the landlord refuses to negotiate?
If the landlord refuses to negotiate, consider asking for other concessions, such as a rent-free month or included utilities. If the landlord is still firm, evaluate whether you’re willing to accept the current terms or if it’s time to look for alternative housing options. Don't bail on your budget!
8. How do I handle a counteroffer from the landlord?
Review the counteroffer carefully and determine if it meets your needs. If not, be prepared to negotiate further or present a new counteroffer. Keep the conversation positive and open to compromise.
If you can spend less money, why wouldn't you? You've switched your butter to a cheaper brand. That's easy, but saving money on rent is more delicate. Negotiating is uncomfortable for most people, but every dollar counts. Focus on the simple fact that the money you save from rent can help you set aside funds for a down payment on a house at your next duty station, pay off debt, or fund a vacation.
Looking for your next rental home? Click below to view rental properties available near military bases across the U.S.
