How to Negotiate a Rent Increase

Rent increases can be incredibly nerve-wracking and emotionally draining if you aren’t prepared to move-out and find another apartment if the new rate doesn’t work for you. Of course, that comes with all sorts of friction and additional costs such as broker fees, moving expenses and time spent looking for a new apartment.

Depending on your jurisdiction, your landlord may have certain minimum notice period requirements if they wish to increase your rent by more than a certain percent, or if they aren’t renewing your lease.

For example, if NYC landlords may be required to notify tenants of a rent increase above 5% or non-renewal up to 90 days in advance of lease expiration, and in Miami-Dade County landlords are required to give 60 days notice for rent increases above 5%.

Here are five things you can do to increase your chances of successfully negotiating a rent increase in your favor:

Research current market rents in your area

Before negotiating, research the average rental prices in your area to determine if the increase being proposed is reasonable. If it is significantly higher than the market rate, you may have a stronger bargaining position.

Not only can you share comparable apartments and their more realistic rent prices, but you can make sure your landlord knows that you’re not going to be complacent and overpay. If it appears credible that you will take these better offers if your landlord doesn’t play ball, then he or she might very well comply. After all, your landlord will also incur costs for having to find a new tenant too!

Pro Tip: If you’re renting in a big landlord building that’s managing by a leasing office, they may often give you a take it or leave it renewal price. Essentially, some of these more corporate, all rental buildings may not be down to negotiate at all. In that case, you should be extra prepared to move in case they truly don’t have any flexibility.

Ask for an explanation

If you are given a notice of a rent increase, ask the landlord for the reason behind it. This could be due to increased property taxes, maintenance costs, or improvements to the property. Understanding the reason for the increase can help you front-run any reasons the landlord might push back with.

For example, if you know the reason for the increase was due to an increase in common charges, then you could counter that while you understand that their common charges have gone up, it doesn’t matter because market rents are still lower than what they’re asking for.

It’s helpful to at the very least ask, especially for a steep increase in rent, because if the landlord doesn’t have a reason for the huge increase, it may be a signal of unrealistic expectations on the part of the landlord, or even a sign that the landlord wants to get rid of you as a tenant.

Remain calm and polite

If you have trouble remaining calm in tense situations, then it’s best to communicate by email with your landlord. But regardless of whether you’re negotiating by email, phone or in-person, it’s important to stay calm and polite. Remember what Bruce Li said, “be water my friend.” And that should be your goal, as the calmest person in the room retains the power.

Furthermore, being rude or emotional can only hurt your relationship with your landlord, and your chances of getting a lower rent renewal rate. In fact, getting into a fiery argument with your landlord might cause him or her to decide to not renew your lease at all!

Remind them that you were a good tenant

The worst fear landlords have is accidentally getting a nightmare or “professional” tenant in their property, especially if their property is in an ultra tenant-friendly jurisdiction like New York or California. So if you’ve been a good tenant, simply point out your history of timely rent payments and how you have taken care of the property.

Sometimes, all it takes is a nice letter reminding your landlord how great you’ve been, how clean you are, and how you’ve always paid rent on time with no complaints. Perhaps they’ll get the hint that it could be much worse with the next tenant. If it happens to be a bad apple, they could be dealing with a squatter that destroys the apartment and takes months or even years to evict in cities like NYC.

Offer a compromise

A longer lease: If the landlord is unwilling to reduce the increase, offer to pay a smaller increase in exchange for a longer lease. Or suggest a phased-in increase over several months or a year. For example, you could offer to sign a 2-year lease instead of a 1-year lease, in exchange for a smaller increase or a stabilization of the rent for the duration of the lease.

Rent-to-own: What about something more creative like a rent-to-own option if your landlord wishes to sell? You could negotiate with your landlord to establish a rent-to-own option, where a portion of your rent payments goes towards a future purchase of the property.

Cost sharing: You could also discuss splitting the cost of any upgrades or renovations to the property with your landlord, which could offset the need for a rent increase.

Early payment discount: You can ask if your landlord would be willing to offer a discount on rent if you agree to pay in advance.

Maintenance responsibilities: You can offer to take on some of the maintenance responsibilities, such as landscaping, cleaning or snow removal, in exchange for a lower rent.

Keep your options open if it doesn’t work out initially

If a lease negotiation for renewal is not successful, there are a few options to consider:

1. Look for another rental property: If the rent increase is not within your budget, you can start searching for other rental properties in the area that fit your budget.

2. Negotiate with a new landlord: If you find another rental property that you like, you can negotiate the rent and other terms with the new landlord.

3. Discuss alternative arrangements: If you would like to stay in your current rental property, you can discuss alternative arrangements with your current landlord, such as sharing the cost of rent increases or finding another roommate to help offset the costs.

4. Consult legal resources: If you believe your landlord’s rent increase is not legal or violates any lease agreement, you can consult with a legal professional or a tenant advocacy organization for advice and guidance.

5. Terminate the lease: If the rent increase is not acceptable and you are unable to find another rental property or reach a compromise, you may need to consider terminating your lease and finding alternative housing arrangements.

It is important to weigh the benefits and drawbacks of each option, and to carefully consider your financial and personal circumstances before making a decision. If you do decide to terminate the lease, make sure to provide written notice to your landlord in accordance with the lease agreement and local laws.