Reduce Your Rent by (At Least) 10%
For years, landlords have been in the driver seat, free to charge whatever they want for that crappy unit with hardwood laminate in “Beverly Hills adjacent.”
But with the recession, those days are gone. This is a renter’s market and a great time to renegotiate your rent.
Recently, I negotiated a 10% reduction in my monthly rent, and I’m a horrible negotiator. But I had two things going for me:
-A history as a good tenant.
-A great letter.
A friend submitted my letter (with some edits) to her landlord and one week later, her rent was lowered by 12%. These numbers are big and can add up to thousands of dollars per year.
Here’s the letter I wrote:
February xxx, 2009
Dear XXXX:
I hope this letter finds you well. As you know, I have lived in the XXXX Apartments for one year and my lease expires at the end of February. I enjoy living here, but my current monthly rate of $XXX is far too high, given current market conditions. Starting in March, I propose that my new monthly rental rate be $XXX per month.
I think that proposed rate is fair given the economic climate and based on the following reasons:
* My credit score is excellent and I have paid my rent on time every month. Advertising to find another tenant with my creditworthiness will be difficult and expensive. In this building alone, I know that there are XXXX units that have sat vacant for several weeks.
* My proposed rate is very fair based on the rental rates of comparable 1 bedroom/1bathroom units in (neighborhood) and its surrounding areas.
* A recent article in the Los Angeles Times predicts that housing prices in the Los Angeles area will continue to fall well beyond 2002 levels. Rental vacancies are rising dramatically, as the tens of thousands of foreclosed homes in the Los Angeles area come into the market as rental units.
As I’ve mentioned before, I enjoy living in your building. I just want my rent to be more reflective of the market realities at this difficult time.
I look forward to your response.
Best,
SoCal Joblist