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Tips for negotiating lower rent
Many tenants are still struggling to keep up with rents, which have jumped up nearly 30% over the last few years. While most tenants accept rental rates they're offered, it is possible to negotiate a lower rent.
HOUSTON - Many tenants are still struggling to keep up with rents, which have jumped up nearly 30% over the last few years. While most tenants accept the rental rates they're offered, it is possible to negotiate a lower rent.
Rent.com says the average rent in Houston is $1,600. That's down 9% from a year ago, but up 2% since last month. Competition is intense for affordable housing, but there are ways to get a lower rate.
Many renters still find themselves pounding the pavement.
"I could find cheaper prices, but you're going to go into more impoverished areas to find cheaper prices for rent, or you’re staying in a building that was built in the 1940s," says renter Ashton Connelly.
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Rent prices across the country are 29.9% higher than they were before the pandemic, according to Zillow.
But despite competition, Rent.com's Kate Terhune says it is possible to negotiate a lower rent. She says find out the rent rates being offered for comparable units at nearby properties, or if you're renewing a lease, what your property mangers are offering new tenants.
"If you’ve got your data in front of you, you can say, 'Look, I really love this apartment, can you match the competition next door and come down in price?' And more often than not you might be surprised, you might get a deal," said Terhune.
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She says you can also ask for concessions, such as one month's free rent, or discounts on parking or fees, especially for newly built properties that need to fill units.
"Know who’s offering what concessions because that can be taken to the place you really want, and those people will want your rent money and will negotiate with you," said Terhune.
To boost your chances for a good deal, sell yourself as a good renter. Take your rental and payment history as well as references from previous landlords.
"If you have great credit, pull your credit report and show them, 'I have fantastic credit, I always pay my bills on time,'" said Terhune.
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And while rents have started to tick down, analysts say don't expect a dramatic drop this year, as long as mortgage rates stay high, and construction of affordable rentals lags behind demand.
"It just seems like you can't get anything in the loop or close to the loop than less than about $1,400 or $1,500," said Connelly.
To determine how much rent you can afford, it should be no more than 30% of your monthly income. If you earn $56,000 a year, that's $1400 a month for rent.
Rents are usually the lowest in December and January, and the highest in the summertime when more renters are moving.