Apartment Prices: Can You Negotiate?

Do you have to pay the rental price the agent… Apartment Prices: Can You Negotiate?

Do you have to pay the rental price the agent or owner gives you? Usually yes, but not always. Knowing enough to negotiate, and being able to negotiate intelligently, can reduce your monthly bill and save you a lot of money over the term of the lease.

Buying a car usually means negotiating for the best price. On the other hand, we pay supermarket prices without negotiation. Most of us know when to negotiate and when to pay the listed price, but for first-time renters, intuition may not be a good guide. You would probably be surprised how much pricing flexibility many rental managers have in today’s service-oriented economy.

Does a manager have the ability to “match” a competitor’s price? Many do, and will, if you ask and can document the lower price. Ask if there is a coupon or discount that could be applied to the price. Some businesses offer price reductions for showing a coupon or discount card, some have discounts for customers referred from businesses like the “Yellow Pages,” and others give discounts to members of certain groups, such as senior citizens and AAA members. Some Oakland businesses give Pitt students a discount, and Port Authority Transit, Pittsburgh’s bus system, lets Pitt students ride for free by showing their ID card. Will the landlord or agent offer special services or extra features? If you buy a new computer, you might get free software, or free assembly may come with the purchase of a new mountain bike. Can you get can an extra incentive to rent this apartment?

If you investigate your options and ask the right questions, you might find that these examples of discounting apply to renting an apartment, too:

The XYZ Apartments have a similar apartment for $425 per month. Can you match that price, or can you tell me why your apartment is worth more than the XYZ apartment? The UVW Apartments will discount my rent $20 if I pay on time. Can you offer me the same discount? I like the apartment, but the refrigerator is in poor condition. If you provide a new refrigerator, it’s a deal. The ABC Apartments offer CMU students a pay-for-11-months, live-for-12-months lease. Is that available for University of Pittsburgh students, too?

Negotiating with a landlord can be as simple as asking if there is any flexibility in pricing or if he would accept $25 less per month. It could entail paying a little more in order to get what you want, such as a nine-month lease (instead of 12) in exchange for an extra $50 per month rent. You could ask the landlord to furnish the apartment or put in new bedroom carpets. It could also mean amending the lease to allow you to sublet the apartment next summer when you graduate, or restricting the landlord’s 24-hour access to the apartment without advance notice.

Negotiations commonly succeed when each party get something it wants in exchange for giving up something the other party wants. Landlords are business people who want a good return on their investment, and that means 100 percent occupancy with tenants who pay their bills on time, don’t trash the place and don’t bother the other tenants or neighbors. If that is the kind of tenant you will be, say so, then prove it. That will go a long way toward helping you win something you want from the landlord. If what you want is a lower price, better lease terms, customized dates of occupancy, or a special service, you will have to ask for it and demonstrate that you are the kind of tenant who will make his life and bottom line better.

A common error in negotiation is talking to the wrong person. You wouldn’t ask the janitor to lower the rent, because he couldn’t agree even if he wanted. Make sure you are talking with someone who has the ability to act on your request. Some rental agents can only show apartments and list prices. Rental agents may have some discretion about lease dates and possibly a rental price range, but they usually do not. How can you tell if you are talking to the right person? If she is going to sign the lease, she is the person who can negotiate the terms.

In the University area, many landlords expect that if you don’t like the price, the terms or the apartment they offer, someone else will soon come along who does. They know that the demand is greater than the supply, especially if you want to live within sight of the Cathedral of Learning. They may still negotiate, but you have little leverage. But if you can show the landlord you know what you are doing and that you are the kind of tenant who will make his life better, give it a shot — you have nothing to lose.

In all cases, whether negotiated or taken as offered, you should get every agreement in writing, signed, and dated. Memories will fade, good intentions may falter, and reliability may not be a landlord’s strong suit. But a written document is proof of the agreement, and it is enforceable in a court of law. Consider it an insurance policy you hope you’ll never need.