Rent may be your largest fixed expense. Bringing the price down may not be easy, but it will help your budget a lot to achieve this. Here are 4 tips to help you negotiate your rent successfully.
Negotiating or renegotiating your rent contract is just like asking your boss for a raise. You must think things over carefully to be able to offer something that will persuade the owner of the home you rent, to bring down the price.
Here is a list of tips to help you succeed at getting a discount in your rent:
1. Pay in advance or pay a larger deposit
Just like everyone else, landlords will be tempted to accept a large amount of money if you offer it. Either paying a larger deposit than they are asking for or paying some (or all) the rent in advance, maybe the best way to get a rent discount.
You will need to have savings to do this, so if you don’t, and are planning to use this strategy, start putting money aside as soon as you can.
2. Agree to a longer lease
One of the simplest ways to reduce rent and land a better deal is signing a longer-term lease.
“Often, landlords are willing to offer one to three months free if a renter signs an 18- to 24-month lease,” says Garrett Derderian managing director, market analysis at CORE Real Estate in New York City.
To be able to offer this, you must be sure it meets your future plans. If you are contemplating a new job in another town, or you are close to needing a bigger place, this is not the best option for you.
3. Offer a service in exchange for a discount
Another idea is to offer the landlord a service. In exchange for a $100 a month savings on rent, you can offer to mow the lawn, paint the place yourself or run errands for the owner, for example.
Any skill you have or anything you are capable of doing will be what you offer in the negotiation. It’s up to you to find out what you are good at and bring it to the table.
4. Offer to pay your rent early
Your rent payment itself isn’t necessarily the only thing a landlord values; consistency and reliability in the payments are also important.
So, another successful strategy may be agreeing to pay rent early. Paying ahead of the monthly due date in exchange for a lower rate may be a good option if you are sure you will be able to accomplish this. For this, you will either need to have savings or to have a regular job that pays on time.