{"id":18414,"date":"2020-05-04T08:00:45","date_gmt":"2020-05-04T13:00:45","guid":{"rendered":"https:\/\/www.abodo.com\/blog\/?p=18414"},"modified":"2020-05-25T09:26:51","modified_gmt":"2020-05-25T14:26:51","slug":"negotiating-lease-renewal","status":"publish","type":"post","link":"https:\/\/www.rentable.co\/blog\/negotiating-lease-renewal\/","title":{"rendered":"Key Tips on How to Negotiate Your Lease Renewal"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Negotiating your lease renewal can save you the hassle of <a href=\"https:\/\/www.rentable.co\/blog\/preparing-for-your-next-move\/\">making the move<\/a>, switching apartments, and raising security deposits. In most instances, a lease renewal means landlords will be asking for higher rent. When you love your current place and don&#8217;t want to shell out on the expenses involved in moving, it makes sense to negotiate the rent with your landlord.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are many ways you can negotiate lease renewal rents. With a clear strategy to negotiate rent, you can work out a win-win agreement with your landlord for your next lease period. Some simple tips to work towards a favorable lease include:<\/span><\/p>\n<h2><b>Research the Local Rental Market<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">For renters, it stands to reason that the more apartments that are available in your area, the more flexible your landlord is likely to be. Conversely, a tight rental market makes it easier for landlords to charge more for lease renewals. So before you go into discussions, find out the state of the local rental market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In particular, find out what similar-sized properties are renting for in the neighborhood. Use brokerage sites, the U.S. housing index, the National Housing Fact Sheet, and sites like Craigslist to gather information.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even without attending a <\/span><a href=\"https:\/\/www.negotiations.com\/training\/\"><span style=\"font-weight: 400;\">negotiation skills training<\/span><\/a><span style=\"font-weight: 400;\"> course, when you have all the facts to hand, you can persuade your landlord on the benefits of reducing your rent in the new lease.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apart from researching vacancy rates and rent, determine the common clauses in lease agreements in your area. Knowing common terms and conditions can prepare you for revising your lease agreement. Some common lease terms you can haggle on are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Payment terms and rent due dates<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Security deposit terms<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tenant obligations<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Limits on occupancy numbers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Subleasing limitations<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Maintenance and repairs<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Right of entry<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Restrictions on pets<\/span><\/li>\n<\/ul>\n<h2><strong>Check the Terms of Your Current Lease<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Take your time going over your current lease. If you have access to lease agreements from other local landlords, compare the terms. Are there any clauses that put you at a disadvantage?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do you qualify for special protection against discriminatory behavior? If so, check out the Fair Housing Laws. After proper and thorough research, prepare to negotiate a revision of terms for the next lease period.<\/span><\/p>\n<h2><b>Understand Your Landlord&#8217;s Position<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A little empathy can go a long way in achieving a win-win rental contract. As a tenant, you want a positive relationship with your landlord that leads to a comfortable and enjoyable stay. By understanding your landlord\u2019s concerns, you are more likely to recommend terms they might be happy to approve. Top sales negotiators aim for creating win-win agreements. When both sides are happy, there\u2019s a greater chance of developing a mutually beneficial long-term relationship.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you prepare to negotiate rent, consider what would make the landlord happy without infringing on your comfort. The landlord most likely wants a tenant who pays on time and treats the property with respect. At the same time, the landlord likely doesn\u2019t want to face the uncertainty of screening new prospective tenants and an unpaid vacancy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Use the landlord&#8217;s concern as leverage to earn concessions. However, avoid arm-twisting your landlord. You need their partnership to make your stay enjoyable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, you can ask the landlord to take care of long-due repairs and agree to the same rent for the new lease. In exchange, you can offer to pay a few days before the due date each month if an earlier pay date suits the landlord.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, keep in mind that family-owned properties or properties owned by smaller lease companies are more likely to hear you out than big leasing agencies.<\/span><\/p>\n<h2><b>Use Your Track Record<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Are you the kind of tenant who pays on time each month? Do you keep the property clean? Do you avoid disruptive behaviors such as hosting loud parties? If you&#8217;ve been the kind of tenant every landlord yearns for, then use your track record when you negotiate rent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even if you&#8217;ve been late with payments in the past, you can still demonstrate an ability to improve. For instance, you can allow the landlord to run a new credit check if your financial situation has improved since your previous lease.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Maybe you completed some training and the fees were a drain on your finances in the past. Completing the course lessens your financial burden while putting you in position for a better job. You may also point out how you have been diligent in keeping the place clean and everything in perfect working order.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the landlord values your tenancy and wants to avoid risking a potentially problematic new tenant, they are likely to review your terms. Unless there have been major complaints against you, your track record can gain you some concessions. Even when you&#8217;ve been less than perfect, most landlords would prefer revising terms than risking a prolonged vacancy.<\/span><\/p>\n<h2><b>Request for Upgrades<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The aim is to obtain the maximum value for the best price. One tip is to use techniques to gain concessions from your landlord. For example, if your landlord is increasing your rent in the new lease, you could ask for significant repairs, replacements, or upgrades.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You could point out to your landlord that you would be willing to pay the asking price if they made the place better.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The time of <\/span><a href=\"https:\/\/www.forbes.com\/sites\/trulia\/2014\/04\/04\/7-tips-to-negotiating-your-lease-renewal\/#2d4830671d94\"><span style=\"font-weight: 400;\">discussing a new lease<\/span><\/a><span style=\"font-weight: 400;\"> is usually also the perfect time to remind management of anything that may be wrong in the building. Examples of <\/span><a href=\"https:\/\/www.rentable.co\/blog\/appliance-and-plumbing-checks-for-renters\/\"><span style=\"font-weight: 400;\">upgrades and repairs<\/span><\/a><span style=\"font-weight: 400;\"> include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Replacing flickering lights<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.redowlroofing.com\/roof-repair\/\"><span style=\"font-weight: 400;\">Repairing leaking roofs<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Repainting walls<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Upgrading security installations<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Kitchen\/bathroom remodeling<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Installing new appliances such as cookers or air conditioning<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, avoid bringing up a multitude of improvements, as this could make for a tense conversation. Focus on one or two improvements you feel will have the most impact on your tenancy.<\/span><\/p>\n<h2><b>Ask for a Longer-Term Lease<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">With some research and training, you can learn to craft new lease terms. For instance, one way to <\/span><span style=\"font-weight: 400;\"> is to lock in the price with a longer lease. For example, if your current contract was for six months, consider aiming for a two-year contract.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While only a few landlords will agree to lock in a rent price for five years, they may be willing to forego increases on an 18 or 24-month lease. Often, lease agreements that go beyond one year have clauses for gradual increments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The landlord may propose a one-off 15% increase on a six-month lease but may consider a lower increase for a longer lease. For example, you may convince your landlord to agree to a 5% annual increase instead. Some benefits of switching to a long-term lease include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stability: You avoid the risk of being forced out in case the building&#8217;s management changes.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Predictability: You know how much your rent will be from year to year, regardless of the prevailing market conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Concessions: Landlords are more willing to allow concessions for long-term tenants. For instance, you may bargain for some free months, lower monthly charges, or better installations.<\/span><\/li>\n<\/ul>\n<h2><b>Offer Upfront Payments<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Paying rent for more of the lease period can overcome some rent-reduction objections the landlord may have. Many landlords will be wary of lowering their rent charges if you&#8217;ve had problems paying in the past. Paying more months of your lease rental in advance could increase the chances of earning discounts and lower rent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may also bargain for a reduction in your security deposit if you pay all or part of your rent in advance. Although security deposits primarily cover damage, the deposit also serves as insurance for non-payment. By paying rent in advance, there&#8217;s no possibility of you defaulting.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, offering to pay a higher security deposit may encourage the landlord to charge lower rent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s not always possible to come up with a full year&#8217;s rent for a residential lease. If you&#8217;re having trouble raising the total rent for the whole lease term, try offering as significant an advance payment as you can. Even three months could still work in your favor when revisiting lease terms.<\/span><\/p>\n<h2><b>Make Concessions You Can Live With<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Negotiations typically involve some give and take. With training, you can hone your abilities for making concessions in return for equal value. You may want to make some concessions to persuade your landlord to agree to some of your terms. Yet, there are concessions you might not want to make.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if you\u2019re thinking about getting a pet, you might feel strongly about living in a pet-restricted apartment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The point is, you want to make concessions you won&#8217;t regret later. At the same time, your landlord may lower rent and ease restrictions if, in some way, you make their life easier.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let&#8217;s say you&#8217;re handy with tools. You may offer to assist with minor repairs in exchange for a lower rent. If you&#8217;re home more than your neighbors, you may offer to improve security by heading a neighborhood watch group.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You want to make concessions that are easy to implement and don&#8217;t cause many inconveniences. Since its give and take, ensure the landlord meets each concession with a rent reduction or other concession of similar value.<\/span><\/p>\n<h2><b>Negotiate Rent for Your Lease Renewal<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Thorough research goes a long way to preparing before you negotiate the rent. By comparing <a href=\"https:\/\/www.rentable.co\/blog\/april-2020-national-apartment-report\/\">local market rates<\/a> and terms, you will be in a better position to gain concessions from your landlord. For a win-win agreement, consider not only your needs but the landlord&#8217;s needs too. What are the landlord&#8217;s fears and pain points? How can you solve or reduce the landlord&#8217;s risks?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;ve been a dream tenant, your track record can persuade the landlord to ease up on some restrictions or lower some charges. You may also request installation upgrades or much-needed replacements. A kitchen remodel or a new paint job can make the higher rent worth paying.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may also lock in an attractive rental rate by signing up for a more extended lease period. However, when you negotiate rent, only agree to concessions you can live with. Otherwise, you may be in for an expensive or uncomfortable tenancy lasting the whole lease period.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Negotiating your lease renewal can save you the hassle of making the move, switching apartments, and raising security deposits. In most instances, a lease renewal means landlords will be asking for higher rent. When you &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Key Tips on How to Negotiate Your Lease Renewal\" class=\"read-more button\" href=\"https:\/\/www.rentable.co\/blog\/negotiating-lease-renewal\/#more-18414\" aria-label=\"More on Key Tips on How to Negotiate Your Lease Renewal\">Read more<\/a><\/p>\n","protected":false},"author":23,"featured_media":18438,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/posts\/18414"}],"collection":[{"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/comments?post=18414"}],"version-history":[{"count":3,"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/posts\/18414\/revisions"}],"predecessor-version":[{"id":18620,"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/posts\/18414\/revisions\/18620"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/media\/18438"}],"wp:attachment":[{"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/media?parent=18414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/categories?post=18414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rentable.co\/blog\/wp-json\/wp\/v2\/tags?post=18414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}