As the nation begins to finally see the end of the two-year-long COVID-19 pandemic, most real estate experts agree that one thing is certain—rents will rise in 2022. In fact, rising rent is expected in every major U.S. housing market, according to the Multifamily Outlook report from Freddie Mac.
While renters across the country are likely to experience price increases, some cities are seeing even higher rates of rental growth. Naturally, California is one of three states that are expected to see the highest rate of rent increases.
Pasadena — like many Southern California cities — can cite some of the highest rents in the country, and those seem likely to only increase. Pasadena is currently experiencing a rental vacancy rate of 2.9%, from a total of 60,286 units.
Within a market like this, can there possibly be room for negotiations for new or established renters? Can renters negotiate their way out of a scheduled rent increase, for example? Can a new renter sign a lease with a rent that is lower than advertised?
Surprisingly, a number of sources say “yes,” it can be done.
Such a move will take finesse and flexibility, and renters will need to stack the cards a little before proceeding to either negotiate a new lease or fight off a scheduled rent increase.
According to Zumper.com, there are some strategies that a new renter might want to think about. Much like a new homebuyer, being in a better financial position than your competition could pay off.
A new renter may offer to pay a few months rent in advance, for example.
“Many landlords would be thrilled to not have to worry about chasing late rent payments (it’s a major headache that everyone hates dealing with),” Zumper said. “If you can pay a few months upfront, your landlord might be willing to offer you a monthly discount.”
Few renters are able to pull off a few months rent in advance, for obvious reasons, but another way renters can drop the price down is to sign a longer lease. If you plan on being there for a while, says Zumper, this could be a big negotiating factor. With a 12 month lease on the line, a renter can ask for a lower monthly rate in return for signing an 18-month or 2-year lease.
“Not having to find new renters every 12 months is a good reason to give someone a lower monthly rent price,” said the site.
As with any negotiation, says the real estate site, Trulia.com, rental negotiations can simply come down to common sense.
Simple manners can work wonders, says the site. There are times to be aggressive and there are times not to be.
Renters should “understand there is a difference between being confident that you are a desirable renter, and being rude. This is (hopefully) the beginning of a long-term relationship with your landlord. Be polite and professional. You have the right as a renter to negotiate rent — but diplomacy and tact are how you’ll seal the deal.”
Are you a good tenant? Are you worth taking a chance on? Let your prospective new landlord know this.
Renters should highlight their positive history of making rental payments on time, taking good care of past apartments, and if you’d like to rent the apartment for multiple years, let your new landlord know. Landlords don’t like looking for new tenants every year. Make sure to provide contact information from previous landlords so your reputation can precede you, in the best way.
Finally, rent.com advises that, like a job interview, do your research before you begin to negotiate a new lease. This means knowing your rental market.
Look around and see what surrounding apartment rates are. If you’re interested in a new development, then look at other new developments.
There are, of course, amenities to most apartments. Do all of them compare to other properties with similar rental rates? If one neighboring apartment complex offers covered parking, a gym and pool, compare that to another apartment complex with parking, gym and a pool.
Those amenities will affect your rent.
Even in a highly competitive market, rental rates can change from day today. Get neighboring rates in writing, and use those when you’re doing your own new negotiation.
