In a slumping economy that supports easily refinanced mortgages and $8,000 first-time homebuyer tax credits, everyone is looking for a deal. But why should these deals be reserved for homeowners?
Tenants of New Jersey apartments are also looking to reduce rents in the face of rising unemployment and inflation. Though one would expect demand for apartments to be high, landlords are not refusing requests to renegotiate lease specifics due to the current economic climate.
Consider the recent experience of Kathy, a twenty-something professional who rents in northern New Jersey. As Kathy’s one-year lease was set to expire in September, she successfully negotiated a 10 percent rental discount.
Kathy believes that all tenants of New Jersey apartments have the capability to trim rents. She relayed the following tips:
- Research the Market – Kathy used the Internet and local periodicals to find comparable apartments – one bedroom, near the train – in northern New Jersey. She then created a simple range of rents to justify her argument. Armed with this evidence, she and the landlord were able to find middle ground.
- Use Friends and Neighbors – During the first year of her lease, Kathy met a few friends in the building. She utilized this network to determine who was paying what. This valuable information won’t help the cause, of course, if you’re already paying less than your buddies!
- Talk to the Super – Kathy made sure to make small talk with the super whenever possible. When it came time to renew her lease, Kathy casually asked him how many vacancies were available. Luckily for her, several apartments sat empty, which stressed the landlord’s need to keep tenants.
- Itemize Frustrations – Kathy listed all the annoyances and disappointments associated with her apartment prior to meeting with the landlord. Does the radiator make too much noise at night? Write it down. Was the pool rarely cleaned? Make a note. While it may be difficult to quantify these deductions, you can certainly prove a point.
- Consider Multi-Year Options – Vendors have been known to offer substantial discounts for bulk purchases. The principle may hold true for apartment leases as well. Propose a 10 percent discount for a 24-month lease. If you expect to stay in the apartment for a longer term, try to use stability to your advantage.
The bottom line is that landlords sacrifice revenue while attempting to re-rent New Jersey apartments. So if you’re hoping to shave a few percentage points off your current rent, consider Kathy’s suggestions while crafting a case.
