A 2017 report by the Federal Reserve found that forty-four percent of adults can’t readily cover an emergency expense of $400. Meanwhile, a 2019 report made by RENTCafé found that the average national rent climbed by 3,2% in 2019, which translates into a $46 increase in the nation’s national average.
While that rate of increase is not excessive, one thing is certain: rent isn’t getting any cheaper. And small increases can accumulate into large bills over time. Paying an extra of $46 a month, for example, amounts to sinking an extra $552 into rent every year — more than enough to cover the aforementioned $400 emergency.
If you haven’t tried to renegotiate your rent in a while, you may be paying more than you have to. Here are factors that will make your lender more likely to agree on a lower price.
1 – Your lender is offering a lower price
If your landlord or lease company owns more than one property, it’s worth keeping an eye on the prices they are offering to new lenders. You may find that the new listings are offering rent cheaper than what you are currently paying. In cases like that, you can contact them asking for a price match, or even try to negotiate a lower price.
Remember, it takes time, money, and effort to find new lenders, so the people holding your lease contract have good reason to keep you happy. Even if all you get is a $50 discount, that still amounts to $600 in savings a year.
2 – You are in a hard to fill property
There are lots of reasons why some properties are harder to lend than others, and a lot of it is determined by the local market. If you have it on good authority that your apartment or home is hard to rent, then you are in a strong position to attempt negotiating a rent discount.
Renters would much rather lower your rent than risk months of downtime with the apartment or house empty. So keep an eye on rental listings in your region. See places similar to yours tend to stay listed and empty for months, and try to find out from your landlord or neighbors just how long the place you are occupying was empty before you rented it.
3 – You are willing to sign a longer contract
If you are fairly certain you will be staying in the same place for the foreseeable future, then why not negotiate a better rent in exchange for a longer contract? Most lenders are willing to sacrifice some immediate profit for the security of a longer lease. Especially if you are a model tenant, with no history of missing payments or causing property damage.
4 – You are able to pay in advance
For a renter, the only thing safer than a longer lease is receiving cash upfront. You may be able to gain a significant discount if you can offer to pay several months or even your entire lease in advance.
You don’t need to have large sums of money saved up to pay rent upfront. You can take out a personal loan to do it. Depending on the discount and the loan’s rates, you may be able to save cash in the long run even after paying the loan’s interest.
5 – You are willing to relocate
The easiest way to pay less rent is, of course, to move to a place where the rent is lower. That could mean switching buildings, neighborhoods, or even just going to a different apartment in the same building. Make sure to keep checking listings in your area, especially when your lease is close to expiring — you never know when a sweeter deal is going to pop-up. When it’s time for you to move, check out these top rated movers in Dallas.