Tips for negotiating a rent increase (as a renter)

Question

My landlord asked me today (via email) whether we plan to stay in the apartment and sign another lease in September. He mentioned there may be a small rent increase. He did not tell me what "small" means, although I suspect it will be $100 or less (current rent - $1600/mo).

I do not plan on moving even if the rent increases. What I am interested in is whether there is something I can negotiate for in return. Unfortunately, I think that a lot of options that could be used as negotiating points are not available to me:

1. I already have a parking spot, there are 3 total in back and 3 units, so I doubt he would give me a second spot.
2. Laundry is coin op in the basement and shared between all 3 units. There is nowhere in my unit where a washer/dryer could go.
3. Unit was completely renovated prior to my moving in, so all the appliances are new and in good condition
4. The apartment itself is also in good condition, only minor wear and tear from the 3 years I have lived here.

The answers in How does one effectively negotiate rent? are similar but the question is geared towards moving into a new place, as opposed to my situation which is a rent increase in an apartment that I have lived in for 3 years.

The only thing I can think of is increased snow removal. Right now the landlord pays someone to shovel part of the driveway, but not enough to get any cars out. The tenants have to do the rest, and it has caused conflict in the past. If I could get the LL to agree to shovel the entire driveway each time it snows (maybe 4-6x/year), that would work well. It would probably cost him an extra $30-50 per snowfall to shovel the entire driveway (I live in the Boston area).

In this situation what other items might I negotiate for?

Answer 1

Unless you are prepared to move out if your demands are not met, you might not have much bargaining power.

If you have a lease with a fixed termination date, there may be a clause in there to the effect that unless a new lease (or renewal or an agreement to extend the current lease under its current rental rate) is signed by both parties n months before the termination date, it is agreed that

• the lease expires on the termination date and the renter will vacate the premises on or before the date of termination of the lease,
• the landlord is entitled to enter the apartment in the renter's absence in order to show the apartment to prospective renters

Assuming that the n months in advance is 3 months in advance, and the landlord is concerned that you have completely forgotten the existence of such a clause, he is simply reminding you that you have to proactively tell the landlord that you want to renew the lease at which point negotiations begin on how much rent the landlord wants to charge and what, if anything, you will get in return for the increase in rent. If the rent increase is "small", the answer may well be that you cannot negotiate anything at all since the increase might be attributable to increased expenses for the landlord or inflation or what have you, and the landlord's attitude might well be "Pay the new rate or leave". On the other hand, a good tenant is a valuable asset and a landlord may well be interested in keeping you rather than looking for a new tenant since that costs money, opens up the possibility of the property remaining vacant for some time, and also of getting a tenant from hell to replace you.

Answer 2

Talking as a landlord, your main arguments are comps and the general increase/decrease of rent in your area. (And so are your landlord's arguments.)

• Comps: how much do comparable units rent for? Look for similar units (same area, number of bedrooms and bathrooms, if your apartment complex is large enough even in the same apartment complex). In the US, Craigslist is a good tool for this. I'd even recommend you regularly check Craigslist, and keep track of all the comps you find, so you have historical data available for reference.
• Increase/decrease in your area: check the Zillow Rent Index. For instance, as of this writing, San Francisco saw a 13.8% increase in the last year. If you're in a large city, look for the Zillow Rent Index in your specific neighborhood. If you were paying $1,000 last year, and rent prices generally increased by 10% in your area, an adjustment to $1,100 doesn't sound crazy.

And keep in mind: you want to stay, and most likely your landlord wants the same. It is in the interest of both of you and your landlord to adjust the rent, either downward or upward, to match the current market value. Your landlord most likely doesn't want to rent the property to you for less than he could rent it to someone else, but doesn't want to increase the price above the market value, as you might leave and he then might not be able to rent the property at that high price anyway.

Answer 3

Check the laws in your state, in some the lease changes to month-to-month automatically after a year unless the parties decide to sign a formal lease extension.

The renter has to give notice that they will or will not be staying beyond the end of the lease. They must also give 30 days notice before moving. The landlord must also give notice before changing the rent or asking the tenant to move.

Switching to month-to-month gives you the flexibility to move when you feel it is convenient. The landlord can raise the rate by giving notice if there are additional costs.

During your three years there he has recouped the cost of finding the tenant, and you have had stability. Each time the lease comes up for renewal there is a risk the tenant will be unwilling to stay, thus costing the owner money involved in finding a new tenant for the unit.

If the landlord insists on raising the rent, then ask for a switch to a month-to-month lease. You will now control your exit date if you need to move for any reason.