Negotiating rent (apartment complex, lease, buyers market, tenant)

[k374]

The end of my lease is approaching... I've been at this place now for 3 years. For the first renewal they increased the rent by 10%, next time around by 5% but now that the market is softening (I live in Orange County) and there are many rentals in the area I want to ask the landlord to keep the rent the same otherwise I leave. Does this type of negotiation work?

I also noticed that they have advertised some new rental units on Craigslist for lower than my current rent payment.

[wannabeaTexan]

I think it depends on if you are dealing with a private owner or an apartment complex with a mgmt company. A private owner would probably be more willing to work you. But a prop mgmt company, not so much.

What are foreclosures like in your area? There could be alot of former home owners who need to rent now, which could make it more difficult I think.

[Smokipenelope]

I live in a complex owned by one of the large property groups - they were telling me I would have an increase, and when I said that due to that I would purchase a home and move they suddenly changed their minds and offered to let me stay at the same rate. I researched where they were listing (their website, craigslist, etc.) and learned that new residents would actually come in at a slightly lower rate than I currently had, and mentioned that, and they grudingly lowered my rent for the new term just a tad bit. This was all fairly recent, about 6 months ago.

[VegasGrace]

I'd just wait (but go ahead and begin searching for somewhere else to move- you may be surprised and find something you'll be excited to move for).

When you are notified of the increase in rent (that should come shortly before your lease expires), you simply write a letter saying you love the home and desire to remain a resident; however, are unable to pay a higher rent. Keep it short and simple. Then let them contact you with either rent stays the same or they must increase the rent and that's when you tell them you'll be out by the end of the lease...or whatever.

good luck!

Great idea smokipenelope- knowledge is power!

[honu1]

From what I've seen across most major markets, there are tons of rentals available. This definitely gives you negotiating power, especially if you're someone who pays on time, is neat, etc. Be tactful but clearly stating your concerns/desiring rent if they try to jack it up. But also be willing to move if you can't reach a mutually agreeable rate.

[ESFP]

Since you've already lived there longer than the average renter, it sounds like you're happy. It appears that you're lucky to have a good landlord. You can negotiate anything you want, and get it in writing. However, a move-threat may weaken the landlord/tenant relationship. If my tenants move, I really don't much care. Any good landlord will have it rented the next day, regardless of the market condition. You may wish you'd stayed where you were. Suggestion: Maybe you could take advantage of this unique buyers market and buy your own house. A owner-occupied duplex has low insurance and mortgage rates, or just buy your own home for payments that may be cheaper than rent. Be careful about what you wish for.