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It never hurts to ask. If you've been a good tenant, they may rather keep you than lose you. It's standard to lose a month's rent whenever there is a turnover. So, if you move out, they'll lose $2650. If they can get a new tenant to rent at that much, it will take them roughly 9 months to make up that loss - and then, of course, they may end up with another turnover, if the new tenant only stays a year.
Plus, there are usually more costs involved in a turnover, than just lost rent - they may need to spend money painting, etc., that they can't charge against a deposit.
And, if a new tenant will only be paying a lower amount, obviously they don't come out ahead.
So, if it was me, I'd take that argument to the manager. Show them the math. Tell them you'd love to stay and are willing to pay whatever extra amount (if you are willing or think you need to offer it) - or just say you'd love to stay, but can find a better deal somewhere else. But, that your budget can't take a $300 hit against your savings goals, etc.
I had a tenant successfully negotiate a lower rent during the economic meltdown around 2008. They were tenants worth keeping, and we knew they could get a better deal somewhere else, so we did lower their rent until the market came back.
Doesn't hurt to ask. Just put your argument on paper with math, and print out some alternatives on Craigslist that you could rent. This is what our tenants did - they printed out CL ads that showed they could find comparable apartments for lower rents.
And I'd suggest just giving them that info and then tell them to think about it and get back to you by....whenever. Don't make them give you an answer right then. When people feel pressured, their answer will usually be no.
Good luck. I used to manage an apartment building in Santa Clara.
Accept the new rate, or leave, that is your choice.
I know of some landlords who will only rent month to month so they can have multiple increases a year without the hassles of a lease.
In CA, if the landlord raises the rent 10% or more in the prior 12 months, the landlord has to give 60 days notice of the increase. And with a month to month, the tenant only has to give 30 days notice to move.
Multiple increases might work somewhere, with a M2M agreement, but I doubt it can really be lucrative in the long run, when you consider the costs involved in turning over apartments, which normally involve at least the loss of a month's rent, and can also mean other costs like painting, etc. It can take most of a year to make up that loss.
Thank you every one for your suggestions. I actually negotiated a 3% increase for my rent. Helps a little bit to be a good tenant and to be in good terms with the apartment manager. I also tried to see if I can get a 2 year lease but they did not agree with that.
We have decreased by $50 (2%), Seattle near AMZN. We tried to increase by $50 (2%) for new tenants but new high rises are giving movein specials. We like to offer a steady rent bc we are small owners and any vacancy affects our income. We haven't raised rents in 3 yrs. We could sell and see 40-50% ROI in our 3 yrs of ownership.
We have absorbed some cost increases and will see $600 less for this current rentor. We must meet expenses else we will sell to people who want to own or to developers. See our dilemma? See your dilemma
In your case, my dilemma would be where in the yard would the for sale sign be seen the best. 40-50% ROI in 3 years is nice.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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^ The issue is where to do the 1031?
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