What can you do if you are facing a big rental increase at renewal? Last week we shared information on the Houston rental market - Dallas apartment rents are increasing big time!
If you are handed a renewal notice with a hefty rate increase, here are 7 strategies for negotiating your renewal:
1. Opt for a longer renewal lease term. In some cases, properties are willing to renew at lower rates if you opt for a longer lease extension. Generally to get the best deal you want to extend for 12 months, or even longer.
2. Choose the right time to renew your lease. Most properties are busiest during the summer while demand drops off during the winter. You can take advantage of the seasonal trend by negotiating a renewal before the summer rush.
3. Negotiate perks. Along with rental rates, you can try to negotiate perks such as a discounted rate for an on-site storage unit, lower rates on reserved parking, or request that pet rent be reduced or waived.
4. Properties like to keep good residents. If you have been a good tenant throughout your lease term and have paid rent in a timely manner, you can use that to your advantage in asking for a better renewal rate.
5. Note the vacancy rate. If the end of your lease is approaching, take note of vacancies at your apartment complex.
6. Shop around. If there are other apartment buildings in the same area, call and ask what the rental rate would be for a comparable floorplan. If the rates they are offering new residents are significantly lower you can sometimes use it as leverage with your current property.
7. Play hardball. Sometimes you have to walk in with your notice to vacate letter in-hand before a manager will negotiate. Let the manager know that you have very much appreciated the time that you have lived there but that the renewal increase is more than you are willing to pay.
Ultimately, you should be prepared to walk away. If you cannot negotiate a compromise on your renewal rate, it may be time to move on and move out.
