Useful Tips

How to negotiate a discount when renting a luxury apartment


When searching for an apartment for rent through ads, you can notice that the cost of rent is usually already indicated, that is, the owners are already expecting a certain amount for the rent. However, if you find a perfect apartment, but the rental price does not fit your budget a bit, you can negotiate a lower price. The amount of the discount depends on how long the apartment has been on the market, whether you are a welcome tenant and whether there are similar offers nearby. Therefore, in the negotiations you need to properly present yourself and conduct market research in advance.

How to reduce rent for an apartment? Not an easy conversation.

The rental market in large cities continues to fall. The same thing happens with population incomes. It's time to negotiate a reduction in rent.

1. Do not be afraid to talk with the landlord. Remember that when rental prices go up, the owner of the apartment, if he has brains, will not be shy and will raise the price. This is normal, this is the market. No one should rent you an apartment below the market, no matter how good relations you have with the landlord. Therefore, if the market falls, you also should not be shy and afraid to ask for a lower price.

You will be able to agree on 3,000 cheaper - this is 36,000 per year - this is two flights to Sochi in July (high season). This is probably half the car insurance, etc.

2. Gather market information.

Go to the popular sites for renting apartments. Drive in an area, street, metro next to your apartment and see how many options are similar to the apartment you are currently renting. Because the range of prices can be large, you must definitely look at the photos to find a really comparable option. I also recommend calling any real estate agency (or your agent) and talking to them. Market information should be central to your conversation.

3. Your problems do not concern anyone. The fact that you have loans, having a baby, lower incomes, your parents are ill or your grandmother has died does not bother anyone. To soften the conversation, you can say that these events forced you to ask the owner to lower the rent, but the main arguments should be market prices, market conditions, possible landlord losses, etc. (read below). No one in this world should sponsor your problems, whatever they may be. Also, this information can play against you - the landlord can think about whether you can consistently pay further if you have such problems.

4. Find out about the downtime of similar apartments. Downtime is the time during which similar apartments are rented out. This information is best obtained from agents. Perhaps your apartment is located near the metro and it can be rented out very quickly, then your position is weaker. But if your apartment can be rented a month or two, you can carefully hint to the landlord about it.

Something like “So they say so, we want to lower it for this and that reason. Therefore, we hope that you will agree, because honestly, we would love to continue to rent your apartment and not have the headache associated with moving, and you would not lose on finding new tenants - downtime, renovation of repairs, furniture, etc. Now the apartments are rented out at 2- 3 months".

A month of downtime of an apartment with a rent of 30,000 rubles will cost the owner 2,500 rubles, calculated per month. If you ask to reduce the rent by 5,000 rubles, he may not agree and take the risk of finding a new tenant. If you are talking about 2-3,000 rubles, you might agree.

5. Reliable and solvent tenant - worth its weight in gold!

Everyone who has ever rented an apartment knows how difficult it is to find adequate, decent and, most importantly, stable solvent tenants. This is really a big headache and the landlord knows this very well. Remind him that you always pay on time, that you don’t bother your neighbors, that you don’t have animals (for many landlords this is an important argument)that you are a family and therefore you are stable (landlords value family more)that you have a good and trusting relationship with him (this is very important)that you have your own furniture, that you solve small technical problems (leaks, bulbs, blockages, etc.) do not disturb him, etc.

6. Carefully highlight the flaws of the apartment. In general, you need to speak positively about the apartment, otherwise call a protective negative reaction of the landlord. You have to say that you would like to stay, despite such trifles (they should be acceptable to you, of course) like an old / not new gas / electric stove or washing machine, lack of furniture, that you could already update the apartment, etc. . A clever landlord will understand that if you move out, he will have to fix these things in order to find new tenants - and these are expenses.

7. Carefully consider the potential losses of the landlord. I already wrote above: you need to appropriately assess the downtime, the cost of updating an apartment for a new tenant, professional cleaning, replacement of equipment, expenses for agents, etc. You will receive a certain amount. You will need it so that you can understand how much rent reduction to ask for.

8. Tell us about your alternatives. Tell him about the specific options you found on the market. You do not have to provide exact addresses. We can say that they found apartments on a nearby street, or closer to the metro, with similar repairs and even a larger area for so much (call the price below). It must be true. Do not lie. A smart landlord can also prepare for the meeting. You will talk nonsense - you will not have confidence and you will not reach your goal. You will say reasonable things and facts, they will listen to you.

9. Say that you solve the problems yourself.

For any landlord to solve stupid technical problems (washing machine, stove, refrigerator, etc.) is a big headache. You need to spend time, effort, money, look for craftsmen, go to shops for equipment, etc. If you decide these little things yourself - remind him of this.

10. Give the landlord time to think, but create urgency. Talking about lower rents can be emotional and even grow into disputes. The worst decisions are made on emotions. Give the owner time to think. Say that you understand that such things need to be considered, but would be grateful for the decision by next Monday, because you definitely need to know his decision by this date, for certain reasons (do not name them, let them suffer))).

11. Start this conversation shortly before your next rental payment. The landlord looks forward to the next payment, especially a few days before it. Such conversations give rise to anxiety in his heart. Of course, he will be able to keep your deposit (if any) and evict you (although it's not that simple)but regardless of this, the fact that you started this conversation shortly before paying the rent will make him nervous in the direction you need.

12. Do not burn bridges or put ultimatums. Do not say that if the owner does not agree to your terms, you will move out of the apartment. Do not threaten or bluff. Many will take this as a challenge and go on the principle, forgetting common sense. Remember that the landlord may not agree, no matter how reasonable your arguments are. Having made an ultimatum, you will have to move out, even if you did not want to. Tell him that if you do not agree on a reduction, then it may be difficult for you to overpower the rent in the future, and you would like to live in this apartment for a very long time.

13. Ask for something in return if the landlord has not agreed to your offer. Try to bite at least something. Try to ask to update the repair or equipment, add furniture. Perhaps the owner will not give you a discount of 20-30,000 rubles per year, but will agree to a repair of 10-15,000 rubles. "With a sheep's sheep, at least a tuft of wool!")))

14. Say good things about the tenant. It's hard to disagree or attack a person who says good things about you. Do not flatter or deceive. Often, people feel cheap flattery and deceit. Say something that is less true. Tell him in a conversation that he looks great today, that he is an adequate and reasonable person and that it’s nice to talk to him, that you trust him, say that he, of course, knows the market and will not argue with the fact that ... further speak your arguments, etc. At the beginning of the conversation, in order to set him up in a positive way or at the end of the conversation, in order to smooth out the situation, ask about his family, vacation plans, hobbies - about which he will be very pleased to talk about.

15. Write a letter to the landlord.

The letter does not have to be sent, sent or shown to the landlord. And you definitely don’t need to read it out))) The upcoming talk about renting can save your family tens of thousands of rubles a year. You have to prepare, spend time - it's worth it. The thoughts put on paper are better structured, better remembered - this will help you prepare well, correctly and consistently express your thoughts during a conversation, build logic and not forget anything important.

16. Give the owner something in return. By bargaining for yourself a big discount of tens of thousands of rubles a year, you can offer the owner something in return. For example, to delay or make repairs or purchases of equipment that he promised you to do. Or offer him to fix the contract for half a year or a year, without your (and his) right to terminate or amend this contract - this will give stability to him and you.

17. Draw up a new agreement on paper. No promises! It is better if you prepare a new agreement in advance. If the landlord agrees to your conditions during the meeting, sign the new conditions immediately, as he may change his mind. Before that, you need, of course, to consult with a lawyer (at work or in consultation) and write everything correctly. If he takes the time to think, sign immediately as you agree on the new conditions. After a week or a month, no one will remember who told whom and what, so fix everything on paper and immediately.

👋 And I wish you well-being in finance, family and life!
Timur Mazaev was with you, he is MoneyPapa - an expert on family finance.

1. Agree on a suitable form of payment

Very often, owners of expensive apartments and apartments, renting them out, themselves spend a lot of time abroad. Therefore, it is advisable for them to receive payments in a certain currency and in a certain way (for example, by bank transfer). Moreover, such foreign companies are usually interested in large foreign companies that rent housing for their employees. They pay only by bank transfer and in national currency. Therefore, if you can agree and choose a payment format that is convenient for the owner, you can count on a good discount.

2. Be responsive

Sometimes negotiations on renting an expensive apartment are delayed, and here the decision-making speed is an important factor for the owner, because the lack of demand for square meters means a loss of profit for him. If within one or two weeks the tenant intends to close the transaction and make the first payment, he can get a discount of 5%, or even 10%.

3. Make a good impression

It is clear that for the owner who has invested a lot of money in an elite apartment, it is necessary to understand what kind of person will live in it. Much depends on the manner in which the first meeting takes place. Therefore, the candidate must correctly present himself and immediately make a good impression, because the second time he may not see the owner of the apartment (agents, lawyers or assistants usually participate in further negotiations). Of course, we are not talking about vowing to convince ourselves of our reliability and accuracy, but a little self-presentation, respect and openness will benefit.

Realtors say that sometimes when meeting acquaintances, candidates show no interest in future housing or in the owners, they talk on the phone during the whole meeting, but they expect to close the deal as soon as possible. However, in practice, there are other cases where a potential tenant did not have a sufficient amount, but the owner liked it so much that the latter was ready to rent him an apartment 10-15% cheaper than originally planned.

4. Share future plans

A serious argument in favor of the tenant is his intention to live in the apartment for a year or two or more. It is even better if he can confirm his words with documents, for example, provide a working contract with a company, according to which he must spend a certain time in this city. In this case, the owner has additional guarantees that he will not have to search for tenants again after a couple of months. Therefore, it is safe to raise the question of the discount, however, a small one - up to 5%.

5. Increase the amount of the premium

Sometimes the owners are very worried about the safety of their property, which means that the candidate can earn extra points by proposing to increase the insurance amount. As a rule, this fee is set in the amount of a monthly payment, is paid upon arrival of the tenant and is not refunded if damage is caused to the apartment, furniture or decoration. Accordingly, when the tenants themselves take the initiative to pay a little more for “insurance”, they automatically increase their confidence in themselves and can count on a discount of up to 5%.

6. Agree to make cosmetic repairs

It happens that the leased apartment, possessing all the characteristics of luxury housing, requires a small update. Moreover, the owner has neither the desire nor the time to engage in such matters. Therefore, if the tenant is ready to make cosmetic repairs on his own, there are wide opportunities for bargaining. Most often, the owners compensate all the costs of materials and the work of specialists, and the tenant can only organize and control the process.

7. Independently organize the export of furniture

Sometimes tenants are looking for apartments only unfurnished. For the owner, this is usually a torment, as it entails additional costs, loss of time and money, for example, in search of a place to store. If the tenant himself takes on the process of removing household furniture and also rents a warehouse, a 5% discount should be provided to him, since in fact there is no depreciation of the owner's furniture.

8. Hire maintenance staff

The presence in the house of a housekeeper or other maintenance staff is an additional confirmation that the apartment will be kept in good condition. Even if this does not allow you to get the desired discount, it’s quite possible to win over the owner and rely on certain privileges.

In a word, the more confidence a candidate provokes, the better. As a rule, owners invest significant sums in the repair of elite real estate, which means that they must be sure that the wear and tear of the property will be minimal during the rental period. So, owners are much more willing to meet a serious businessman who spends most of his time at work than a family with two small children, a cat and a dog. Tenants often believe that such personal circumstances are not significant, but they ultimately affect the cost of rent.