Rental prices for New York City apartments are notoriously high and have only increased in recent years. This year, the average rent for a one-bedroom apartment hit $4,200, forcing renters to spend more of their income on housing. With low inventory and plenty of people looking to rent, prices will likely remain high for the foreseeable future.
During a busy market, many landlords receive multiple applications for an apartment and will, therefore, not need to lower their rent or offer any bonuses. However, some renters in slower markets may find ways to ask for a lower rent price, a concession, or other deal to help them save money. There are several strategies renters can follow to ask for a rent reduction or other appealing concession.
What Are Concessions?
A concession is a type of offer a property owner will add to their listing to make it more appealing to renters. In most cases, the concession comes as a free month of rent at the end of the lease. This means the renter will not have to pay rent for a specific month, saving them money in the long run. Landlords may offer two weeks, a month, or multiple months of free rent on an apartment during the slow season to entice renters.
Net Effective Rent with Concessions
When looking at apartment listings, renters should ensure they know the gross rent for an apartment. This is the amount the renter must pay monthly. When a listing has a concession for free rent, the advertiser can advertise the net effective rate, which is the total rent someone will pay during the lease, divided by the months on the lease. Therefore, when a unit has a free month of rent, the net effective is lower than the gross rent.
Learn more: Net Effective Rent: What it Means and How to Calculate
Additional Concessions
Property owners may have other concessions to offer besides free rent. They may cover the broker’s fee, offer no security deposit or application cost, or provide free parking. If the building has amenities that renters must pay for, like storage or the gym, landlords can also offer discounts on these added features.
Can You Negotiate Rent on an Apartment?
In addition to concessions, renters can also try to directly negotiate the rent price they’ll pay each month. The rent is the landlord’s primary concern, meaning they will be less willing to budge on this factor than a lower-priced parking spot. Renters will need to build a stronger case to negotiate the rent in this case.
When to Negotiate Rent or Ask for Concessions
In some markets and situations, renters have more power to negotiate, meaning they should ask about lowering the rent or receiving concessions. The first way to know if you’re in a position of power is to look at the market and understand the current conditions.
Location
Renters should see the competition that they have in the neighborhood they want to move to. A popular Manhattan neighborhood like the East Village will likely have higher competition, as many renters choose to live in this spot. Therefore, a landlord will not need to lower the rent to find a suitable tenant. If you don’t want to pay, get out of the way.
However, there are plenty of less popular neighborhoods across the five boroughs, and landlords may not have as many interested renters. In these scenarios, you’ll have more opportunities to negotiate, as the landlord wants to rent the apartment as quickly as possible.
Price Point
Similar to the location, renters should understand the market share for units at their price point. If you’ve found a gem apartment that is lower than the average rent in your area, you likely will not successfully negotiate a lower rent or concession. However, if the unit has a higher rent than comparable units (units in the neighborhood with similar amenities in the apartment and building), there will be more wiggle room to negotiate.
Time of Year
The time of year also plays a critical role in your ability to negotiate, especially in cities that experience full weather cycles. In New York City, the busy rental season is during the summer months, as renters do not want to move in the winter. In Boston, most people sign new leases for the last week of August or the first week of September. Learn when your area has a busy rental season, and if you’re looking to negotiate, you may need to rent during the off-season.
Are There Already Concessions?
If you’re renting an apartment at a slightly higher price in a less popular neighborhood during the off-season, you’ve hit the jackpot for negotiating. However, it’s likely the landlord knows their position and has already offered a concession. Renters can still use this to their advantage. If the apartment has one month free, try asking for two months free or a reduction on the security deposit.
If there is a concession on a popular apartment during the busy rental season, you’ll have less luck negotiating further. The landlord has already offered a deal and will likely remove the concession if you do not sign within a given timeline.
How to Negotiate Lower Rent or Concessions as a Current Tenant
The lease renewal period can be a stressful time for existing tenants, as it’s difficult to know how much your landlord will increase the rent. If you decide to negotiate the rent increase, there are some steps you can take to avoid moving out.
Research the Current Market
Conduct an apartment search for units that fit your current apartment. Make sure to select the proper neighborhood and amenities, then look at the prices for those units. If they’re around the price of your landlord’s new rent, it may be time to move. However, if your apartment charges a higher price, screenshot the other listings and use them as leverage during the negotiation.
Pro Tip: Look at the average rent in your neighborhood.
Try An Additional Few Months
If it’s time to renew and your lease ends during the slow months of the rental cycle, ask the landlord if you can sign for another couple of months until the busy season. This benefits the landlord as they will know they have tenants for a couple of months and can then increase the rent during the busy time of year to hopefully sign a new tenant quickly.
Note that this strategy is less common and may put you at a disadvantage when it comes to the summer season. You’ll now have to find an apartment during the busy time of year and find higher-priced rents anyway.
What Happens After Negotiations?
After you’ve successfully negotiated for a lower rent or a concession, you’ll need to double-check your lease to ensure if reflects the negotiated discounts. Additionally, if you spoke about the concession in person, follow up via email to keep an additional written record of the agreement. The written documentation can help if somewhere along the line, the concession goes away or the landlord charges a higher rent price. It can also hold up in a legal matter if needed.
Conclusion
While New York City renters pay hefty rents for their apartments, there are ways to negotiate for a lower price or concession. By following the previous strategies to research and understand the market, renters have more power to negotiate, and increase their chances of success. Depending on the time of year, renters will have more opportunities to negotiate, but prospective renters can still try their luck to ask for a discount respectfully. Existing tenants can also negotiate when they receive a lease renewal to help keep costs down.
