You Can Negotiate Rent!
45sImmediately challenges a common belief and promises financial savings, which is universally appealing.
βΆ Play ClipAI Summary
This video from Zillow Rentals provides a practical guide on how to negotiate rent, covering preparation, research, and negotiation strategies. It emphasizes that with increased rental supply, renters have more leverage than they might think.
Chapters
[00:00]
Rent Negotiation is Possible
The video opens by suggesting that renters may have more power to negotiate than they think, especially with recent market changes.
[00:29]
Increased Rental Supply
More rental units have come on the market, increasing supply in nearly all of the 50 major U.S. metros analyzed.
[01:10]
Step 1: Prepare to Negotiate
Preparation includes lining up references who can vouch for on-time rent payments and good behavior, and getting your credit score in good shape.
[02:15]
Determine Your Budget
Use a rent affordability calculator to know how much room you have to negotiate.
[02:28]
Step 2: Do Your Research
Research the local market to see if concessions are common, and use Zillow data showing that more than two out of five rental listings increased in 48 of the 50 largest U.S. metros.
[03:31]
Use Comparable Listings
When comparing, ensure the comps are similar (e.g., same bedroom count) and save screenshots of listings in case they get rented.
[04:13]
Consider Broker Fees
In markets like New York City, you can ask the landlord to cover the broker's fee as a concession.
[04:46]
Gauge Listing Activity
Check how long a listing has been on the market and the number of applications; if it's been a while and there are few applications, you have leverage to negotiate.
[05:15]
Make a Reasonable Offer
Avoid lowball offers; use your research and comps to make a credible case. Consider offering to pay several months' rent upfront.
[05:46]
Negotiate Perks
If lower rent isn't possible, negotiate concessions like free or reduced parking, or waived amenity fees.
[06:15]
Maintain the Relationship
How you negotiate sets the stage for your relationship with the landlord, so be respectful and clear.
[06:29]
Get Agreement in Writing
Once you've struck an agreement, make sure to get it in writing.
Rent negotiation is a viable strategy in many markets, especially with increased supply. By preparing, researching, and making a reasonable case, renters can secure lower rent or valuable concessions.
Mentioned in this Video
Tutorial Checklist
Study Flashcards (8)
What is the first step in preparing to negotiate rent?
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What is the first step in preparing to negotiate rent?
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Line up references who can vouch for on-time rent payments and good behavior.
01:10
What percentage of rental listings increased in 48 of the 50 largest U.S. metros?
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What percentage of rental listings increased in 48 of the 50 largest U.S. metros?
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More than two out of five (over 40%).
03:02
What should you do with comparable listings before they get rented?
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What should you do with comparable listings before they get rented?
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Save screenshots of the listings so you have them on hand when making your case.
03:43
In which type of market might you ask the landlord to cover the broker's fee?
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In which type of market might you ask the landlord to cover the broker's fee?
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In markets where rental brokers are common, like New York City.
04:13
What is a key indicator that you have leverage to negotiate?
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What is a key indicator that you have leverage to negotiate?
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If the rental has been on the market for a while and has few or no pending applications.
04:59
What should you avoid when making an offer?
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What should you avoid when making an offer?
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A lowball offer, as it is likely to be rejected.
05:15
What are two examples of concessions you can negotiate besides lower rent?
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What are two examples of concessions you can negotiate besides lower rent?
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Free or reduced parking costs, or waived amenity fees.
05:46
Why is it important to maintain a good relationship during negotiation?
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Why is it important to maintain a good relationship during negotiation?
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Because how you negotiate can set the stage for your relationship with the landlord if you end up renting from them.
06:15
π‘ Key Takeaways
π‘
Increased Supply Gives Renters Leverage
This is a key market insight that empowers renters to negotiate, as supply has increased in nearly all major U.S. metros.
00:29
π
Zillow Data Shows Concessions Are Common
The statistic that over 40% of listings increased in 48 of 50 metros provides concrete evidence that negotiation is often possible.
03:02
π§
Reasonable Offers Are More Likely to Succeed
This principle is crucial for effective negotiation, as lowball offers are likely to be rejected.
05:15
βοΈ
Get Agreements in Writing
This is a critical practical tip to protect the renter's interests after a verbal agreement.
06:29Full Transcript
[00:00] and wish that it were a little bit lower? You might be able to negotiate it lower, that would make it a much better deal.
[00:15] or you're aiming to renew the lease on your current one, you might have more power to negotiate a deal than you think. have seen some big changes over the past year.
[00:29] and more rental units have come on the market, increasing supply. In nearly all of the 50 major U.S. metros that we analyzed.
[00:43] and what are the best strategies when you're doing it? Let's find out together. Welcome to Learn with Zillow. I'm Lindsay Cohen from Zillow Rentals.
[00:58] but you can also negotiate perks like free parking or other benefits. and your landlords,
[01:10] some surprising opportunities to cut a deal So before you start negotiating, Step one: prepare to negotiate.
[01:24] For those of you it's a good idea to line up some references, who can vouch that you pay your rent on time,
[01:36] and you don't cause trouble with the neighbors So if you want the building's best tenant award in your last rental,
[01:48] If you're a first time renter, like sports or clubs or people outside your family who know you well.
[02:00] and be sure to give those references a heads up Next, get your credit score in good shape. you pay your bills on time,
[02:15] From there, determine your budget. so you know how much room you have to negotiate. rent affordability calculator,
[02:28] Step two: do your research to make a case. you need to make a credible case for lower rent This means researching the place you're staying in the local market,
[02:46] to see whether concessions are common or they're rare. being offered in the nation's 100 largest metros. rates, information that can help you gauge
[03:02] For instance, did you know that more than two out of five rental listings on Zillow increased in 48 of the 50 largest U.S. metros over just this past year.
[03:19] just like this, as well as the monthly rental market reports on Zillow scope out some rental listings online and make notes
[03:31] That means if you're looking for a two bedroom, make sure the comparable units or comps that you're picking
[03:43] When you find those comps, the listings in case they get rented and the link goes away. You'll want to have this on hand when making your case to the landlord,
[03:57] building, check out what other units are renting for such as one month's free rent or free parking. where the use of rental brokers is common, like New York City,
[04:13] If so, you could ask the landlord to cover the broker's fee as a concession. Once you've done your research, if there's a case to be made.
[04:29] quickly might be a tough sell, you may be able to make a case to lower the rent. to find a rental with good odds of agreeing to concessions.
[04:46] Most rental listings on Zillow show the amount of time and the number of applications that have been submitted through Zillow.
[04:59] it's safe to say you can attempt to negotiate. and the rental has been on the market for a while, ask or the broker has any pending applications. And if not,
[05:15] A lowball offer, though, is likely to get rejected So play your cards right and make a reasonable offer. And remember the research you did and those comps that you saved
[05:30] Pitch to the landlord or if possible, paying several month's rent upfront. If negotiating a lower rent isn't an option,
[05:46] Consider concessions like free or reduced parking costs, If you're in an apartment building with amenity fees.
[06:00] Whatever you ask for, After all, you've got to maintain this relationship How you negotiate can set the stage
[06:15] if you end up renting with them. For ideas on how to ask, clearly, we've linked to a sample script in the description box below. Okay, hopefully that negotiation went great.
[06:29] Remember, once you've struck an agreement with the landlord, Do not forget this part. so you see more helpful content from Zillow Rentals.
[06:45] Let us know if this guide was useful We've also linked plenty of helpful box below, so be sure to check those out.
[06:58] Hey, good luck negotiating and thanks for watching.