Tips to Negotiate Rent Increasing With Your Landlord

There is a prevalent rule that the landlord will increase the rent at equal intervals when it comes to real estate. This increase could be in a year or even a span of two or three years, as stated in the contract. 

Usually, each landlord has his standard percentage of rising affixed, and every time the rent increases, automatically, the percentage agreed on is levied. However, as tenants, you too have a very important role to play here and can effectively choose to negotiate with this rent increase. 

Certain easy technical tips can help you analyze what the process should be when you want to negotiate the rent schemes.

It is almost a given that is just talking on it won’t do any good as the landlord, in most cases, will have his mindset upon increasing the rent. Hence it is very important to take up the situation from a different perspective and ensure that you can handle it in a tricky way. 

An increased rent is an inevitable consequence; however, you can effectively choose to negotiate so that even your prices are taken into account.

Ultimate Guide to Negotiate The Rent

When we say that, we will teach you the most important tips when it comes to negotiating the rent, do remember that the term negotiating means to come in a middle road. This includes certain terms and conditions of the landlord, which apply to even the tenants. 

In no way will the negotiation mean that the landlord will end up canceling the increase. All of us know that the contract is legally binding, and hence if the landlord wishes, then the rent increase will be followed by the contract, or else you are allowed to terminate the same. 

Some of the major tips that could be highly effective to negotiate the rent with your landlord include:

1. Analyze the Market

When it comes to the domain of real estate, in most cases, we see that there is a set standard for the market, which does tend to vary depending on the location. 

Before you negotiate, try to have an understanding of the market and what are the current prices of the properties which fall under the same category. 

This is a very important factor to consider because, in many cases, we do see that the landlord ends up charging an exorbitant amount that is not in compliance with the market rate.

In case you see that is the issue, address the same and try to strike a deal that is right for the current market valuation. Negotiation becomes an easy job when you know the current market analytics as it allows you to put forth numbers. 

It is normal human psychology to get drawn more when statistics or numbers are mentioned; hence this tip could work wonders if you are looking to negotiate the rent increase with your landlord.

2. Explain Your Limitations

In most cases, it is seen that there is an increase in the number of problems because of the overlying miscommunication. Hence it is very important for the individual to understand your problems, and only you can choose to do so. 

All of us know that with the covid 19 pandemic, there has been a major blow in the economic domain, and hence the limitations of affording the rent increase have also been boosted. If you feel that your landlord generally understands your problems and is someone you can open up to, feel free to tell them the same.

In most cases, we have seen that the landlords do agree to lower the increase, if not curbing it down completely. One has to understand that with the rise in the prices of essentials, even the landlord has bills to pay. Hence the rent increase is somewhat an inevitable consequence. All you can do as tenants are ensure that this percentage does not rise too high. 

Also See: How to tell your Landlord that you are Moving

3. Don’t Fail To Pay Your Outstandings

Negotiation is not a one-way street, and hence you too need to maintain a good record as tenants. If you are someone who has not been a very good tenant, the chances are that the negotiation will fail. This means that you try to pay the rent on time and maintain the house as if it’s your own.

The number of trustworthy tenants is quite less, and hence they are very important as well. When your landlord sees that you are otherwise trusted, just the rent increase is a problem; they will try to take up as much initiative as possible. Being in the landlord’s good books is very important if you want to leverage benefits like this in the future.

4. Don’t Forget- It’s A Negotiation

A common thing that often acts up against you is that people tend to forget it’s a negotiation and start quoting prices that are not worth it. Soon the landlord will lose interest after listening to the low prices, and you will immediately lose the negotiation. 

It is very important to understand in this respect that negotiation inevitably means that you also need to be considerate and meet somewhere in the middle. 

Don’t keep your expectations too high, and try to focus on the percentage slash instead of trying to stop the increase fully. This is a very rookie mistake, and you could actually end up losing the property as well.

5. Negotiate Directly

Remember that when it comes to a negotiation, it is best to do it directly with your landlord. When you incorporate a middle person, the communication often gets strangled, and you do not have the right kind of negotiation deals. 

Not only that, but you will also be able to put in your problems in a more promising way than anyone else. Hence, the landlord’s chances of being convinced are greater when you approach them directly. 

Remember that the impact is much more long-lasting and effective when the tenant themselves get in touch with the landlord and explain why affording the quoted increase could be difficult for them.

See Also: Obligations and Rights of Landlords and Tenants | Tips to Good Tenants

FAQs

Can I negotiate the rent increase during covid times?

The coronavirus pandemic has surely not been merciful on any offers, and this stands true even for the real estate industry. During the covid times, it has been hard on the landlords as well to find a good tenant who can pay the amount, which is the bare minimum for the property. If you are a tenant who has been renting the property for quite some time now and then, you can indeed request the landlord so that he does not increase the rent too much. Explaining how the covid has impacted your economic stances could make the point firmer.

Can A Negotiation Stop The Rent Increase Completely?

There is a common misconception prevalent among people that negotiation means completely stopping the rent increase. However, you have to understand that according to the real estate laws in most countries, rent increases depend on the contractual bindings. 

Hence, stopping the rent increase altogether just with negotiations would not be enough. Negotiation effectively means that you are coming to a middle ground considering the requirements of both the tenant and the landlord.

Should I ask my broker to negotiate the rent increase on my behalf?

Asking the broker to negotiate the rent increase on your behalf is yet another grave mistake that most tenants end up making. If you consider talking to your landlord so that the negotiation for your rent increase is granted, try to do that yourself. Most often, going through brokers or intermediaries could strangle the communication, and you will end up achieving nothing. 

Hence we would always suggest that when it comes to negotiating the rent increase, you approach the landlord directly.

How Much Can The Rent Increase Be Negotiated?

This is entirely a subjective answer, and it could depend on actually what is the relationship that you share with your landlord. Not only the landlord himself but often the tenants’ attitude up till now also have a significant role in negotiation. 

It can be concluded safely that if you have a good enough relationship with your landlord, negative negotiation can be on your side, provided you are not doing it regularly. If you do not share an excellent relationship with the landlord, the negotiation can backfire.

Can The Landowner Choose to Not Participate in the Negotiation?

Yes, the landowner may choose not to participate in the negotiation. It is also possible that even if they participate, they do not end up complying with the deals you make. 

In that case, you can choose to make the deals more comprehensive or end up concluding that it would not be possible to pay the stipulated increase, and you want to terminate the agreement.

Also Read: Top Apartment Moving Companies in the USA

Written by


Rostislav Shetman is the founder of 9Kilo Moving. He has been in the moving and relocation industry for more than 25 years, making him an expert in his field. Rostislav started as a helper, dispatcher and driver and has worked his way up to owning his own company. He takes great pride in his work and enjoys helping people relocate across the United States of America. When he's not working, Rostislav enjoys spending time with his family and friends. They are the light of his life and bring him happiness every day.