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Negotiating our rent renewal -- any advice?

Negotiating our rent renewal -- any advice?

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Old Jan 26th 2008, 3:42 pm
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Question Negotiating our rent renewal -- any advice?

Has anyone ever tried negotiating for a lower rent when your lease comes up for renewal?

We live in a 1BR, 1BA apartment -- nice neighborhood, great location, etc -- and currently pay $815/month. We just learned that when we renew our lease, our rent will increase to $845/month.

At the same time, though, just last week (before we got the renewal notice yesterday) we'd emailed the apartment management to ask if we could get some upgraded appliances. We've lived here for 7 years and don't plan on moving anytime soon (this is for various reasons). We've always been good tenants, pay on time, follow the rules, etc. When other apartments are vacated, they often get an upgraded appliance or two, perhaps new carpeting. It doesn't seem fair that we're penalized for choosing to live here long-term, while newer tenants get all the good stuff.

Their response was that they only put upgraded/new appliances in apartments being "remodeled" -- this is a new thing they've been marketing for the past year or so. (Having been here so long, I know this is not exactly true, because I've seen this happen in vacated apartments all the time when I walk the dog around the neighborhood.) So, no new appliances for us. However, coincidentally the apartment next to us will be "remodeled" next month, and they said that we can apply to move into it if we wanted the newer/nicer amenities. (The layout/size of that apartment is identical to ours.) The remodeled apartment's rent would "only" be $915/month -- plus we'd have to submit an application and pay a $150 deposit. BUT, they decided that, based on our situation, we would only have to pay a $250 nonrefundable deposit for our dog instead of the usual $500. That was the only "discount" they would offer us. Well, we can't afford to pay $915 in rent, PLUS the $150 deposit AND the $250 dog fee -- so moving next door is out of the question.

So now, not only are we being told that the management isn't willing to help us improve the interior of our apartment in any way -- an interior which only has only depreciated year after year -- we ALSO are being charged MORE for it!

In all the years I've been here, I've never tried negotiating our lease renewal terms. However, I feel like if they're willing to cut the $500 dog fee in half, that's a starting point. I just don't know the best way to go about doing it. What kinds of things should I point out? What should I NOT point out? Should I do this in person, or just continue with this back-and-forth email thread I've already got going about the appliances? (They'd also told me in one of their emails that our new rent would be $830, so it could definitely be considered a natural progression to discuss the negotiation that way, too.)

Anybody have any (hopefully successful!) experience with this?

~ Jenney

p.s. I know many of you will want to suggest moving somewhere else completely, but for various reasons it's unfortunately not feasible for us to do that. It has to do with what we can afford,and with our dog, who is an Akita and is thus (unfairly, in our opinion) banned from almost everywhere -- trust me, we've looked! Even our current apartment complex doesn't allow Akitas anymore, but she's been here for so long, she was grandfathered in...
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Old Jan 26th 2008, 4:18 pm
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Default Re: Negotiating our rent renewal -- any advice?

Everything is negotiable.

But you have a dog, and dogs are the equivalent of rental cancer. The few building managers who accept dogs know this. Many owners would rather allow a unit to sit empty than accept a dog of any sort, and your dog is large enough to put off many of the few remaining landlords who might otherwise accept a small dog.

So you'll probably have to suck it up. Dogs and rentals don't mix; the only way around it over the long run is either ditching the hound, or else moving into the world of homeownership.

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Old Jan 26th 2008, 4:42 pm
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by RoadWarriorFromLP
Everything is negotiable.

But you have a dog, and dogs are the equivalent of rental cancer. The few building managers who accept dogs know this. Many owners would rather allow a unit to sit empty than accept a dog of any sort, and your dog is large enough to put off many of the few remaining landlords who might otherwise accept a small dog.

So you'll probably have to suck it up. Dogs and rentals don't mix; the only way around it over the long run is either ditching the hound, or else moving into the world of homeownership.
Well, we're certainly not getting rid of the dog!! That's not even remotely an option. Again, without getting into all the specifics (which would take too long and frankly involve sharing private information I don't want to), moving is not an option at the point, either. We're staying put.

I'm just wondering what kinds of tips people can provide about how to negotiate. I agree that "everything is negotiable" but that doesn't really help answer my question. I think the fact that they're willing to cut the nonrefundable dog fee in half shows they're willing to work with us, but I'm just not sure what angle to take, exactly.

Do I just say, "We got the renewal notice and were wondering if you'd be willing to negotiate the rent increase?" and then leave it in their hands?

Or should I say, "We got the renewal notice, and given our recent conversation about appliance upgrades, we'd appreciate it if you could meet us half-way and make the new rent $830/month -- which is less of a discount than the $250 discount you offered off the nonrefundable dog fee if we moved next door?"

We know it's not realistic for them to not increase our rent at all, but we'd like to see if they'd be willing to decrease the increase (for lack of a better phrase!). I just don't know the best way to go about doing that.

~ Jenney
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Old Jan 26th 2008, 5:08 pm
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Default Re: Negotiating our rent renewal -- any advice?

My point was that you most likely don't have any negotiation leverage, because of the dog.

The only threat that you have as a tenant is to move. And you can't move, because of the dog. The landlord knows this.

The only alternative is to charm and schmooze them. If they like you and the property management company isn't a professional firm (i.e. one that tries to squeeze every cent out of everyone), you might get a break. Or, if vacancies in your area are very high, then maybe you can haggle if they are in desperate need of the rent.

Otherwise, there just isn't much to haggle here. I negotiate just about everything, but in this instance, your position is probably very weak. You might want to consider it as a dog tax. I know that you don't want to hear this, but sometimes, reality bites.
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Old Jan 26th 2008, 5:41 pm
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by RoadWarriorFromLP
My point was that you most likely don't have any negotiation leverage, because of the dog.

The only threat that you have as a tenant is to move. And you can't move, because of the dog. The landlord knows this.

The only alternative is to charm and schmooze them. If they like you and the property management company isn't a professional firm (i.e. one that tries to squeeze every cent out of everyone), you might get a break. Or, if vacancies in your area are very high, then maybe you can haggle if they are in desperate need of the rent.

Otherwise, there just isn't much to haggle here. I negotiate just about everything, but in this instance, your position is probably very weak. You might want to consider it as a dog tax. I know that you don't want to hear this, but sometimes, reality bites.
Thank you, and I appreciate your feedback.

Anyone else have ideas on how to approach this negotiation? We'd like to try but we just need help getting started.

~ Jenney
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Old Jan 26th 2008, 5:51 pm
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by Jenney & Mark
Thank you, and I appreciate your feedback.

Anyone else have ideas on how to approach this negotiation? We'd like to try but we just need help getting started.

~ Jenney
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2. Make them an offer they can't refuse
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Old Jan 26th 2008, 5:58 pm
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by Jenney & Mark
Thank you, and I appreciate your feedback.

Anyone else have ideas on how to approach this negotiation? We'd like to try but we just need help getting started.

~ Jenney
What you've told us so far is that you won't consider moving, and probably can't because of the dog. That makes negotiating extremely difficult because, as RWfLP already said, you have zero leverage in the negotiation.

But you want to negotiate... so you have to be forceful about it. None of this "meet you in the middle" bullshit. They're not going to evict you for trying to negotiate. If you go in with a weak attitude, they'll trample all over you.

Write them a letter. Verbal negotiations are useless in these situations, in my experience.

In that letter, say that it is unacceptable to you that you are having to pay an increased rent while the interior of your apartment has been allowed to degrade over 7 years through normal wear and tear. Don't mention the dog - they know you have one, so discussions about it only work against you. Point out that you have done everything required of you to maintain the apartment in the time you've been there, but natural wear and tear means that the place is now due for improvement.

Tell them that you are formally requesting that they bring the interior standard of your apartment up to that of the other apartments in the block. Explain that you are happy to pay the increased rent, but expect basic improvements in return. Perhaps have some specifics listed - not a full refurbishment, or they'll just come back to the $915 price.

I would expect them to come back and either refuse outright, or give you the $915 offer either on your apartment after refurb, or the neighboring apartment.

Then it's up to you how hard you fight. The only real leverage you have in this situation is to threaten to leave, but you sound like you'll never do this. They probably know that too. What other incentive can you give the landlord to make changes that will cost him money? I can't think of any.

Still, it's worth putting up a bit of a fight.

If you can copy this letter to someone with more seniority then do - I don't know if your apartment development is run by a large company or a sole owner.
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Old Jan 26th 2008, 6:55 pm
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Default Re: Negotiating our rent renewal -- any advice?

I think DB mentions good points and ideas esp about economic depreciation of the unit. What timeframe are we talking about regarding renewal?

Leave the dog out of the equations and leave your emotions out of it too. People have dogs and its not anything unusual and its not anything to factor or rational about allowance. Yes, everything is negotiable... "if you don't ask, you don't get" - goes the same for LL or Management company.

Highlight your track record with them and do they want to either gamble on someone else or even take the time to screen them etc? Like DB said, the leverage is about leaving and it should be obvious how much of a proven asset you'd be elsewhere.

Compare and contrast and go with your comparable shopping of apartments, rents, incentives, condition of apts or what you have negotiated elsewhere. Go in hand with your info you have collected. Why should I go with you when I can currently get x elsewhere. If the rental market is slow, then they should be willing to compromise with you.. if its a 'hot' rental market, there is always someone walking in the door right after you.

Another thing I would do is send in a friend to seem interested in renting in your complex.... what sort of things are they offering and for how much? If at all possible, find out what the cheapest rent somebody is paying... its not so much the LL/MngCo can't rent it for cheaper, the question for them is do you want to do it again.

regarding remodelling etc; if other tenants are getting a certain standard in living conditions, it makes sense that you are entitled to it too. They will do a song and dance about only certain units tagged for remodelling/updating etc BS a) they will do it at a turnover and vacancy as its the easiest time to do it b) they don't want to do it to you because it may require them to 'temporarily' relocate you (at their expense most likely) inorder to do the work... which they don't want to pay anything more than they have to.

Double check to see if there are any 'rules' about how often rentals are needed to be updated etc. Start with any houseing authority or building code office etc.

Also, a signature now is worth two in the bush, if you think you'll be there for 2 years, how about saying, I'll sign right now for 2 years for $x/mo. The thing about negotiation... go prepared, know what you want and is acceptable to you per se. Always throw in heaps of extra crap too even if you don't want it... the otherside don't need to know that, you can always take it out (ie negotiate it) so it looks as though you are giving in but if they agree to it, kudos to you.

At the end of the day they don't want a highish vacancy rate in the books. Affects NOE and cashflow... at the end of the day they don't have to answer to someone as to why there are vacant units etc. Its margin; many places will argue that running costs have gone up etc BS.. many places are cash cows and its all about the net numbers.
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Old Jan 26th 2008, 7:26 pm
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by Jenney & Mark
Thank you, and I appreciate your feedback.

Anyone else have ideas on how to approach this negotiation? We'd like to try but we just need help getting started.

~ Jenney
Jenney - when I was in my 20's I rented the same apartment for a total of 4 years, so less than you. One year I received an increase in my rent that upset me - I don't remember specifically how much it was - but it was enough that I called the landlord about it. While he didn't decrease the increase, he did put in writing that he wouldn't increase my rent for another two years at least. So that's something anyway.

Oh - and may or may not be relevant - but I had 2 cats in that apartment - so a bit similar to your situation.
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Old Jan 26th 2008, 8:24 pm
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by dbj1000
What you've told us so far is that you won't consider moving, and probably can't because of the dog. That makes negotiating extremely difficult because, as RWfLP already said, you have zero leverage in the negotiation.

But you want to negotiate... so you have to be forceful about it. None of this "meet you in the middle" bullshit. They're not going to evict you for trying to negotiate. If you go in with a weak attitude, they'll trample all over you.

Write them a letter. Verbal negotiations are useless in these situations, in my experience.

In that letter, say that it is unacceptable to you that you are having to pay an increased rent while the interior of your apartment has been allowed to degrade over 7 years through normal wear and tear. Don't mention the dog - they know you have one, so discussions about it only work against you. Point out that you have done everything required of you to maintain the apartment in the time you've been there, but natural wear and tear means that the place is now due for improvement.

Tell them that you are formally requesting that they bring the interior standard of your apartment up to that of the other apartments in the block. Explain that you are happy to pay the increased rent, but expect basic improvements in return. Perhaps have some specifics listed - not a full refurbishment, or they'll just come back to the $915 price.

I would expect them to come back and either refuse outright, or give you the $915 offer either on your apartment after refurb, or the neighboring apartment.

Then it's up to you how hard you fight. The only real leverage you have in this situation is to threaten to leave, but you sound like you'll never do this. They probably know that too. What other incentive can you give the landlord to make changes that will cost him money? I can't think of any.

Still, it's worth putting up a bit of a fight.

If you can copy this letter to someone with more seniority then do - I don't know if your apartment development is run by a large company or a sole owner.
Unless there is a rent control ordinance that bars eviction, I would be careful with this. It's one thing to grind someone down when shopping for a car, etc.. But you have to continue to deal with the landlord, and as we have covered, you probably don't have many options. A pissed off landlord is not a good landlord.

Most areas of the country that don't have rent control laws allow eviction without cause. (A longer notice period is required than is the case with for-cause evictions, and evictions aren't permitted in violation of anti-discrimination laws, but otherwise, it's generally legal. So unless you have laws preventing the contrary, you probably could be evicted -- there are no civil rights laws that protect your right to keep pets in rental properties.) Or, you may find other quiet forms of retaliation, such as another rent increase down the road that comes more quickly and is higher than what you're being given now, or a more relaxed attitude about addressing whatever maintenance needs you may have.

You haven't indicated what the market rent is for your unit, but based upon what was said about the neighboring unit for rent, your rent is probably already at or below market. If you are below market, you are already saving cash, and frankly have even less to complain about.

So it's unlikely that you have a saber to rattle. If you are in an ethnic minority or handicapped, then you **might** be able to play the race card, but otherwise, you haven't got much ground to stand on. Given your lack of a Plan B, I would not suggest using any nastiness in your strategy. Pleading poverty might be a more appealing angle.

Last edited by RoadWarriorFromLP; Jan 26th 2008 at 8:29 pm.
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Old Jan 26th 2008, 8:41 pm
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by RoadWarriorFromLP
Unless there is a rent control ordinance that bars eviction, I would be careful with this. It's one thing to grind someone down when shopping for a car, etc.. But you have to continue to deal with the landlord, and as we have covered, you probably don't have many options. A pissed off landlord is not a good landlord.

Most areas of the country that don't have rent control laws allow eviction without cause. (A longer notice period is required than is the case with for-cause evictions, and evictions aren't permitted in violation of anti-discrimination laws, but otherwise, it's generally legal. So unless you have laws preventing the contrary, you probably could be evicted -- there are no civil rights laws that protect your right to keep pets in rental properties.) Or, you may find other quiet forms of retaliation, such as another rent increase down the road that comes more quickly and is higher than what you're being given now, or a more relaxed attitude about addressing whatever maintenance needs you may have.

You haven't indicated what the market rent is for your unit, but based upon what was said about the neighboring unit for rent, your rent is probably already at or below market. If you are below market, you are already saving cash, and frankly have even less to complain about.

So it's unlikely that you have a saber to rattle. If you are in an ethnic minority or handicapped, then you **might** be able to play the race card, but otherwise, you haven't got much ground to stand on. Given your lack of a Plan B, I would not suggest using any nastiness in your strategy. Pleading poverty might be a more appealing angle.
You're probably right, but I just find that all depressing. After a post like that, it's pretty much guaranteed that the OP won't be doing any negotiating (not that I think they were going to negotiate in any real sense anyway) with the threat of eviction hanging over them.

The idea that you have to put up with crap like that, because you're a tenant is just why I always hated renting, and why I could never bring myself to buy investment property.

Personally, I can't imagine that asking a second time for the apartment to be updated would end up in eviction, but you seem to think that's what could happen, and I'd never think of advising someone to do something that could lose them their home of 7 years.
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Old Jan 26th 2008, 8:45 pm
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Default Re: Negotiating our rent renewal -- any advice?

It's time you guys became homeowners. And now is probably a good time to start looking with a buyer's market and low interest rates. Negotiate onto a month to month lease if going with this option.
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Old Jan 26th 2008, 11:30 pm
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by fatbrit
It's time you guys became homeowners. And now is probably a good time to start looking with a buyer's market and low interest rates. Negotiate onto a month to month lease if going with this option.
That's excellent advice. If their credit is good now would be an excellent time to buy.
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Old Jan 27th 2008, 2:08 am
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Default Re: Negotiating our rent renewal -- any advice?

Originally Posted by dbj1000
After a post like that, it's pretty much guaranteed that the OP won't be doing any negotiating (not that I think they were going to negotiate in any real sense anyway) with the threat of eviction hanging over them.
That's why I suggest groveling and pleading, rather than haggling. The option most likely to succeed involves playing on sympathy, not fighting over dollars.

The OP has one advantage over the landlord -- if you move out, they must come out of pocket for the upgrades that the next tenant will demand. A second possible advantage is that if you've been a good tenant, then you are a better risk than this unknown renter who may replace you (better the devil you know than the devil you don't.) The latter is particularly true if it's a small building, because the ramifications of having a bad tenant are far worse in a small building than in a large one.

Which brings us back to the dog. This is the essential negotiation problem, because it's no secret to all involved how difficult it is to move with a pet like this. If you had no pets, or just a cat, it might be easier to play hard ball.
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Old Jan 27th 2008, 4:09 am
  #15  
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Default Re: Negotiating our rent renewal -- any advice?

Thank you all for taking the time to respond to my thread. I had written out a very long response about why I still think we have something to work with, even if moving out is not something we can hold over their heads. But it's clear that most of you wouldn't find it relevant so I didn't see the point in posting it. I am now scared to death to ask them for anything, because we simply can't afford to get evicted. Ditching the dog is not an option. Buying a house, right now anyway, is not an option.

~ Jenney
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