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Negotiating with Landlords 101
If you’re a renter or about to become one, it’s important to know how to talk to your landlord and what terms you should be expecting. If negotiations break down between you and your landlord, many things can go wrong. This article will provide the tools necessary for negotiation so that it is hopefully not an issue for you or your roommates.
What to do before you start negotiating
Know the market value for similar properties in the area and know what prices are generally charged within your own building. This way, there’s no question that you’re getting a good deal or not. If it seems like your price is too low, then you might consider just brainstorming some potential reasons why your landlord might be willing to offer that price before you start negotiating. If it seems like the landlord is getting off easy, you should bring up all the issues of repairs and maintenance of the building, so they know their options are not so cut and dry.
Know what specific terms you would like to negotiate for before you start. If you know that you’re not responsible for water damage in the event of a flood, then it might be best to bring that up as soon as possible so that all parties involved are aware and on the same page.
Make sure everyone who is going to negotiate knows their role. You should have one person handle the talking and negotiating, while the other two are responsible for things like note-taking, remembering important dates or deadlines, and paying bills.
How to approach your landlord
An easy way to your landlord is through their monthly income instead of your checkbook. If you know how much they are earning per month from all of their rental properties and how much you and your roommates owe in rent, then you can probably make a competent argument as to why the new terms should be accepted.
It is possible that your landlord would rather have an increased rate but with no additional responsibilities. If this is the case, you should try to find ways that could benefit them directly. For example, perhaps they would like to have more control over who’s renting, and you could offer terms that allow them to do so.
What to negotiate
There are many components that can be negotiated within a lease agreement. The important thing is to remember that the best deals happen when both parties feel they got what they wanted. It is generally best to ask for more than what you would eventually like so that there’s some room for negotiation.
When negotiating price, your landlord might not be willing to budge on the actual amount, but they could potentially be amenable to different buckets of money. For example, if the rent is $950 split between four roommates and you want the split to be $300 per person, your landlord might not change that price, but they might agree to take care of the water bill as part of it the rent.
Some landlords like to keep their tenants on a month-to-month basis and only allow leases for extended periods (ex: six months or a year). If this is the case, you could ask your landlord if they would be willing to switch to an annual lease. If you are worried about paying for another year when you don’t know the property conditions, then you might ask them to give everyone in the building an option to renew or not renew at their own discretion.
If repairs need to be made, then you should make sure that everyone responsible knows what they are responsible for paying. One good way to do this is with an Excel sheet or Google Docs, where things can be tracked in real-time.
What not to negotiate
When looking for ways to save money on the rent, it’s essential to know which things cannot be negotiated. If a landlord is willing to access air conditioning or heating, they might not allow you to arrange for those utilities.
If the house has a yard and you have a dog, then your landlord might decide that you can pay them extra money each month so that your pet doesn’t disturb other tenants. In this case, you might want to ask if there are any alternative options so that you don’t have to pay more than your fair share of the cost.
Your landlord may want to evict everyone in the building because they don’t like children or pets. If this is the case, it’s probably best not to negotiate and find a new apartment.
Red flags
When your landlord starts to ask for things that you think are weird or aren’t fair, then you might want to stand up for yourself and argue against it. Remember that you can always walk away from the negotiation if he says something you don’t agree with. It is better to go to a different house than be stuck in a building where there are no rules.
What if someone doesn’t pay
One of the most essential things for negotiating with your landlord is to make sure that you get everything squared away at the beginning of the lease. If everyone pays their bills on time and takes care of any damage they cause, then your landlord will most likely be willing to give you a break on the rent.
What if someone doesn’t want to negotiate
If one of your roommates is unwilling to negotiate, it might be best to look for another house together. Remember that everyone should have an equal say in the property, and if someone isn’t willing to work with you, then maybe you should find another housemate to live with.
What if the landlord doesn’t want to negotiate
If your landlord doesn’t budge on anything, it might be time to move out instead of living in a place where no one feels comfortable about what is happening there. If everything has already been rented out, then maybe you should go to a different house.
How to seal the deal
The best way to close negotiations is by knowing when it’s time to talk money. If you feel like the landlord has been negotiating in good faith, then maybe it’s time for everyone else to start talking about how much they are willing to pay. If no one is willing to negotiate, it might be best to find another house with better conditions for you and your roommates.
Once everything has been decided, make sure to get it all in writing. This includes the number of people living on the property, how much everyone will pay, a list of fines that violate the lease, and a list of things that can be negotiated. When it comes to moving day, make sure to double-check the property’s condition before you leave. If there is any damage, then you might have to pay for it out of your deposit or even with your next month’s rent.
Summary
To successfully negotiate with a landlord, you need to know what can and cannot be arranged. This article discussed things that could not be dealt with, such as the cost of utilities or access to air conditioning/heating. We also looked at red flag moments in negotiations where renters need to stand up for themselves against their landlords asking for strange requests like evicting everyone in the building because they don’t like children or pets. Finally, there were some instances when negotiating may not have been successful due to lack of participation from all roommates–in which case one should look elsewhere before signing a lease agreement.