{"id":16107,"date":"2022-08-31T15:00:00","date_gmt":"2022-08-31T19:00:00","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=16107"},"modified":"2024-11-21T11:36:27","modified_gmt":"2024-11-21T16:36:27","slug":"how-to-negotiate-rent-concessions","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/how-to-negotiate-rent-concessions\/","title":{"rendered":"How to Negotiate Rent & Concessions"},"content":{"rendered":"

Rental prices for New York City apartments<\/a> are notoriously high and have only increased in recent years. This year, the average rent<\/a> 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.<\/p>\n

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.<\/p>\n

What Are Concessions?<\/h2>\n

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.<\/p>\n

Net Effective Rent with Concessions<\/h3>\n

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.<\/p>\n

Learn more: Net Effective Rent: What it Means and How to Calculate<\/a><\/em><\/p>\n

Additional Concessions<\/h3>\n

Property owners may have other concessions to offer besides free rent. They may cover the broker\u2019s fee<\/a>, offer no security deposit<\/a> or application<\/a> 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.<\/p>\n

Can You Negotiate Rent on an Apartment?<\/h3>\n

In addition to concessions, renters can also try to directly negotiate the rent price they\u2019ll 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.<\/p>\n

When to Negotiate Rent or Ask for Concessions<\/h2>\n

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\u2019re in a position of power is to look at the market and understand the current conditions.<\/p>\n

Location<\/h3>\n

Renters should see the competition that they have in the neighborhood they want to move to. A popular Manhattan<\/a> neighborhood like the East Village<\/a> 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\u2019t want to pay, get out of the way.<\/p>\n

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\u2019ll have more opportunities to negotiate, as the landlord wants to rent the apartment as quickly as possible.<\/p>\n

Price Point<\/h3>\n

Similar to the location, renters should understand the market share for units at their price point. If you\u2019ve 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.<\/p>\n

Time of Year<\/h3>\n

The time of year<\/a> 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<\/a>, 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\u2019re looking to negotiate, you may need to rent during the off-season.<\/p>\n

Are There Already Concessions?<\/h3>\n

If you\u2019re renting an apartment at a slightly higher price in a less popular neighborhood during the off-season, you\u2019ve hit the jackpot for negotiating. However, it\u2019s 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.<\/p>\n

If there is a concession on a popular apartment during the busy rental season, you\u2019ll 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.<\/p>\n

Learn more:<\/p>\n