How to Negotiate a Lease Renewal with Your Rental Company

Avoid a Rent Increase

Can you really avoid the unavoidable? If you’ve been living in rented apartments, you’re probably familiar with the rent increase letter from your landlord or rental company. Appearing a few months before the end of your lease, this notice of lukewarm tidings will thank you for being a tenant and offer to renew your lease with an increased monthly rent. Often, landlords and rental companies will cite rising maintenance costs, a more difficult local market, or even jump in fuel prices if heat is included in your tab. A spike in your monthly bills due to a rent increase will make your budget tighter, and it may even force you to move if the increase is too dramatic. Depending on your situation, though, you may be able to negotiate with your landlord or rental company to reduce the hike or even avoid the increase altogether. There’s no guarantee you’ll avoid a rent increase, but here are some things to keep in mind when negotiating.

1. First, unless you’re a bad tenant, your rental company probably wants to keep you around. If they’ve offered to renew your lease or extend you on a month-to-month basis, then you know that there are not any major problems with you from their perspective. Although state and local laws vary, you will typically be informed of a rent increase several weeks before you must commit to a new lease at a higher rate. Your current lease may even explain the procedures for lease renewal and increases. Take advantage of any lead time to assemble your case and negotiate. Waiting until the absolute last minute will make avoiding an increase more difficult, and your rental company knows that.

2. Be professional throughout the negotiation process. Although it is important to state your concerns frankly, you should not take an accusatory tone either in speech or writing. Be assertive in your arguments but not so aggressive that they decide you’re a problem tenant after all.