10 Tips for Negotiating a Lease with a Landlord
A lease to rent an apartment or house is a contractual obligation that needs to be taken very seriously. Like any contract it is important that you carefully read and understand all of the terms of the lease before signing it. Here you will find ten tips that you can use to prepare your negotiations with the landlord about your lease. These are general tips and if you do not understand the terms of the lease then you should consult with a real estate attorney prior to signing the lease or any other contract that has to do with leasing property.
Tip #1 Read, Read, and Then Read Again
The most important part of any contract, including a lease, is that you read it very carefully. People have a tendency to skim contracts because they are usually boring and hard to read, but it really is important that you read the lease and make sure that you understand everything that is stated in the contract. Read it first to gain general knowledge. Read it a second time for clarification.
Tip #2 Make Notes
When you read the lease the third time have a piece of paper and a pen to take notes on items that you do not understand or items contained in the lease that you have questions about. Make sure that your notes and questions are complete so that you will know exactly what you are talking about and which section of the lease the question refers to when you are talking about it with the landlord.
Tip #3 Gather Information
Do a little research on the landlord, apartment complex, or corporation that you will be entering into this agreement. This information will help you to better understand where the landlord is coming from and which points of the lease may actually be negotiable. Also, be sure to read and understand the landlord and tenant rights laws as they apply to the state that you live.
Tip #4 Walk in Your Landlord’s Shoes
Once you have created your list of questions go back and think about how the landlord may respond to your questions and concerns. Think about the responses from your landlord’s point-of-view. Once you have come up with some of the responses that the landlord may have, come up with rebuttals to their responses. This will better prepare you for the negotiation process because it will help to prevent you from getting stumped during the middle of the negotiations.
Tip #5 Timing is Everything
Most landlords have a process that they go through when they are renting out an apartment or house. Many landlords will require that you submit an application, sometimes requiring an application fee, so that they can do a background check, pull your credit, etc. You should ask for a copy of the lease upfront so that you will have time to review it while this process is taking place. This will give you time to read through the lease, formulate your questions, and prepare for negotiations.
Once the landlord has told you that you have been approved and that everything has checked out then the logical next step is completing the lease. This is the right time to talk with the landlord about the questions and concerns that you have about the lease. Timing is everything. You wouldn’t want to start your negotiations before this time because if you never get approved to move in then there is really no need to negotiate.
Tip #6 Question the Landlord
This is sort of a psychological game, but you should set up an appointment with the landlord to discuss the questions and concerns that you have about the lease. Be sure to take your copy of the contract and your list of questions with you to the meeting. Start at the beginning of the contract and go through your list of questions in order. Thoroughly discuss each question until you are satisfied with the answer that the landlord gives or at least until you fully understand the answer to your question.
Why is it a psychological game? First, because the fact that you have taken the time to read the lease and come up with a list of questions about the lease shows the landlord that you have taken the time to educate yourself on the terms of the agreement. Second, anytime you question something in the lease it mentally puts a form of doubt in the mind of the landlord on the item that you are questioning. This may cause the landlord to agree to negotiate some or all of the terms of the lease that you do not feel comfortable with or have a doubt about.
Tip #7 Stay Calm and Be Reasonable
It is important that during the negotiations that you stay calm and be reasonable. This presents a professional front to the landlord and they are more apt to listen to what you have to say and agree to the terms with a calm person than they are with someone who is yelling at them. It is also important that your requests are reasonable and realistic. The terms of the agreement should benefit both parties and not be too slanted so that they are only advantageous to one party.
Tip #8 I Want to Talk About Me, Me, Me, Me, Me
It is human nature for people to want to know what’s in it for them. How does this benefit me? So when you are presenting the changes that you would like made to the lease, show how these changes may benefit the landlord as well as how it will benefit you. If it’s all about how it benefits you then the likelihood of the landlord making these changes are going to be very slim.
Tip #9 Have Backup
Especially if you feel resistance from the landlord about negotiating certain terms, make sure you have something to backup your arguments. If you have perfect credit and excellent references from previous landlords, be sure to point this out to the landlord. Sell yourself to him or her on why you are a great tenant and why it is not a risk to him to agree to change certain terms of the lease to benefit you. On the other hand, if you have terrible credit and horrible references then you may have to come up with other reasons why you will be a great tenant and this may be a hard sell over those who do have great credit and great references.
Tip #10 Get It in Writing
Once the amended terms have been agreed upon be sure to put it in writing. Have the landlord type up a new lease including the new terms before signing the agreement or write the new terms on the existing lease and both you and the landlord need to initial each change. This should all be done before signing the lease!
