I recently read an article in the New York Post about rental prices falling. I know that an apartment in my building that is the same size as mine is being offered for $200 cheaper a month than mine. How can I negotiate with the landlord to lower my rent?
In some areas of town and for some types of units, rents are falling and it is taking longer for apartments to be rented out. Most industry professionals would probably see this as price “correcting” rather than price dropping however, since apartment prices had increased at a pretty dramatic rate for much of the past five years.
Generally, the management companies that have a glut of new apartments thanks to the building explosion of the past few years are the ones that are dropping their prices. Studio units in luxury doorman buildings in trendy areas are probably the most subject to a price drop, particularly in the Wall Street area and far west side of Chelsea. However, the same units in more established areas of the Village, Upper East & West Sides are not dropping at all and the vacancy rate remains very low.
In order to negotiate well in any situation, you have to have something that they other person wants and may not gain without compromise. If you are already living in the building and already have a lease, the management company has no incentive at all to negotiate simply because you are already contracted to that unit for that price. If you are close to the end of your lease however, and you have been a good tenant (paid your rent on time, haven’t been the subject of complaints, etc) then you have a much better case IF your building has a high number of unoccupied units.
When the end of your lease approaches, you should get a renewal offer. This will essentially extend your lease for a set period of time (generally a year) and typically will have the same clauses as your current lease. However, if the management company is looking to raise the rent, this increase will be spelled out in the offer letter. If you want to negotiate the rent, make a copy of the offer letter, but do not sign it, as signing it indicates that you are happy to accept the new offer and all of it’s terms. Include a copy of the renewal offer, write a brief letter explaining your request. This should be something very short and direct.
Dear Manager,
I have enjoyed living in apartment 5F for the past year and look forward to living here for many years to come. I did notice however that other units in my line are currently being offered for $200 less per month than I am currently paying. I would appreciate a new offer letter that reflects the current market value of my unit.
Sincerely,
Tenant
If the management company is agreeable, you should receive a new offer. However you should also be aware that all units, even in the same line are not necessarily created equal. You may see that studios in your building are now advertised for $200 less a month, but are they the same size and layout? Do they have the same amenities? Units can vary wildly in size and quality even within a building.
In addition, a management company has no obligation to lease the unit to you at the price that you request. If they decline, do you really want to move? Often with moving expenses, even if you find an apartment that is cheaper, you won’t be any better off at all. This is why sending a polite letter is essential. If you start sending threats that you will move, etc you may back yourself into a corner difficult to get out of if the management company declines to reduce your rent.
Negotiating rent is always a possibility, if you are knowledgeable about your building and the current market values. But insure that you do so in a respectful and friendly way.
In some areas of town and for some types of units, rents are falling and it is taking longer for apartments to be rented out. Most industry professionals would probably see this as price “correcting” rather than price dropping however, since apartment prices had increased at a pretty dramatic rate for much of the past five years.
Generally, the management companies that have a glut of new apartments thanks to the building explosion of the past few years are the ones that are dropping their prices. Studio units in luxury doorman buildings in trendy areas are probably the most subject to a price drop, particularly in the Wall Street area and far west side of Chelsea. However, the same units in more established areas of the Village, Upper East & West Sides are not dropping at all and the vacancy rate remains very low.
In order to negotiate well in any situation, you have to have something that they other person wants and may not gain without compromise. If you are already living in the building and already have a lease, the management company has no incentive at all to negotiate simply because you are already contracted to that unit for that price. If you are close to the end of your lease however, and you have been a good tenant (paid your rent on time, haven’t been the subject of complaints, etc) then you have a much better case IF your building has a high number of unoccupied units.
When the end of your lease approaches, you should get a renewal offer. This will essentially extend your lease for a set period of time (generally a year) and typically will have the same clauses as your current lease. However, if the management company is looking to raise the rent, this increase will be spelled out in the offer letter. If you want to negotiate the rent, make a copy of the offer letter, but do not sign it, as signing it indicates that you are happy to accept the new offer and all of it’s terms. Include a copy of the renewal offer, write a brief letter explaining your request. This should be something very short and direct.
Dear Manager,
I have enjoyed living in apartment 5F for the past year and look forward to living here for many years to come. I did notice however that other units in my line are currently being offered for $200 less per month than I am currently paying. I would appreciate a new offer letter that reflects the current market value of my unit.
Sincerely,
Tenant
If the management company is agreeable, you should receive a new offer. However you should also be aware that all units, even in the same line are not necessarily created equal. You may see that studios in your building are now advertised for $200 less a month, but are they the same size and layout? Do they have the same amenities? Units can vary wildly in size and quality even within a building.
In addition, a management company has no obligation to lease the unit to you at the price that you request. If they decline, do you really want to move? Often with moving expenses, even if you find an apartment that is cheaper, you won’t be any better off at all. This is why sending a polite letter is essential. If you start sending threats that you will move, etc you may back yourself into a corner difficult to get out of if the management company declines to reduce your rent.
Negotiating rent is always a possibility, if you are knowledgeable about your building and the current market values. But insure that you do so in a respectful and friendly way.
Good luck!
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