I used to give a lot more financial tips on here but frankly I find them boring to read myself. I do however like to bring it up whenever I do something I’m proud of.
I’ve been in the DC area for a while now and the time had come to renegotiate my painfully expensive rent (compared to the south that is). It’s best not to get caught up in what you used to pay for rent in another building or location, all that matters is the going rates at your current place.
When the time comes to renew your lease, your apartment complex will graciously offer you a certain price. The price may seem like a decent rate compared to what you currently pay because they are trying to get you into a longer term lease. My apartment offered me a rate only 3% higher than my current rate, for a lease that was 2 months longer. I don’t know where I’m going to be at that time so this won’t work for me. I need a shorter lease. So I asked for a quote on what I wanted.
What my partner in the office didn’t know was what I was doing behind her back. I had someone contact the office asking for the price of a new move in so I would know the going rate for new tenants. I also had a friend who renegotiated her rent just a month prior. I also researched the latest earnings reports for the apartment company and found their general occupancy rate, as well as the occupancy rate of apartments in the DC area.
The apartment manager came back with a price now 10% higher than my current rent for the new lease time. I countered with the information I had learned on current prices and occupancy. I also pointed out the problems I’ve had with the building and management during my time here and cited a quote from a competing apartment complex across the street. She cut the premium down to just a 5% increase and considering my shorter lease agreement I thought this was fair. It was a better rate than my friend got and I have a shorter lease term than her.
Could I have gotten an even lower price? Probably. But I’m looking to have a good relationship with the management and overall like the place where I live. When you’re renewing and like your place you have to be nicer than you are when you negotiating a lease at a new place.
Hopefully in the next year or so I can sort out exactly what I’ll be doing for the next 5 or more years and can start the process of finding a place to buy. Keep your fingers crossed.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
