She's never been told no when negotiating a rent increase down; here's how she does it
A former TV consumer reporter shares what she has learned about negotiating rent increases, car purchases and more
Hi, my friend.
I don’t have to tell you that it is a strange time in the economy. Interest rates are falling, but they’re still higher than they were a couple of years ago. Inflation isn’t climbing as fast as it once was, but most prices certainly aren’t going down. And the unemployment rate is still low, but social media is filled with stories of how impossible the job market is right now.
Well, here’s a bit of good news, in the form of this headline from The Wall Street Journal: “Renters Have The Upper Hand. And They Are Probably Keeping It.”
Here’s one key paragraph from the story…
“Landlords in many metro areas are slashing prices. Those in the Sunbelt and Mountain West states are offering the deepest rent reductions, especially in cities like Austin, Denver and Phoenix.”
That doesn’t surprise me about Austin, where I currently live. It has been a long time since I’ve rented, but I certainly have friends who do, and they’ve told me how much better the rental market is now than it was. The Journal article backs up that assertion, saying that “landlords are now betting on the ability to raise rents by the end of 2026, or at least sometime in 2027.”
Obviously, that’s great news for renters. It means that they have even more potential power when it comes to negotiating their rent, whether they’re looking for a new place or staying at their current rental.
Of course, people have always had the power to negotiate rents. It doesn’t always work, for reasons often beyond people’s control, but it is often worth considering.
“I have never been told no.”
Want proof that negotiating rent can work? Meet Niccole Caan Kunshek.
In more than 15 years of doing interviews about money, I can’t even count how many consumer reporters I’ve spoken to. However, there are few that I’ve talked with more over the years than Niccole.
I got to know Niccole when she was with KENS-TV in San Antonio, but she spent many years at TV stations in Texas and Indiana before leaving the TV news business a few years ago. I always respected her work and her passion for personal finance, so when it was time for me to do interviews for my book, I knew I had to reach out to her.
She didn’t disappoint. In fact, I featured her as one of the “Success Stories” in my book because of how well she has negotiated her rent over the years.
Recently, I reached back out to Niccole to see if she’d share some of her secrets of her success with us at “Ask, Save, Earn,” and she was nice enough to agree.
She wrote the following piece, which includes:
The simple question you use to start a negotiation
The points she makes when negotiating rent
Tips for how to practice a negotiation by role-playing with a trusted friend
And bonus tips on how she recently went about negotiating a deal on a new car.
Here’s what she wrote…
By Niccole Caan
Did you know you can get money off your rent renewal?
I had no idea either. I overpaid on rent for YEARS.
Think of the money I wasted unknowingly! Estimating it keeps me up at night. I probably could have taken at least five vacations with that cash.
Now, I ask for a discount every year when my rent renewal comes up, and I have never been told no. You can also ask for a lower credit card interest rate, which will save you tons on payments over your lifetime. However, the landlord and your credit card company are not going to just offer you these discounts. You’ll need to ask.
It all starts with the ask.
Americans are terrible at bargaining. Culturally, many people feel it is offensive to ask for a lower price. That’s not the way it is in other parts of the world, though. I lived in Asia for a few years and learned the art of negotiation during my time overseas. Yep, I was the dumb American initially paying full price until I heard others bargaining.
It all starts with the ask. Sure, it can be uncomfortable. Yes, you may be told no as someone gives you a funny look. Do not let this deter you. Businesses are out to make as much money as they can, so very few of them are going to just come out and tell you, “Hey, you can get this cheaper.” However, if you’re willing to ask, and maybe even play a little hardball, you can get discounts.
Asking politely is a big key, as is not being unreasonable with the ask. Asking for 10-20% off something is just fine. Asking for 50% off likely is not.
You can start with this simple question: “Would you consider taking [X amount] off?” This is a request, not a demand, so make sure you smile.
Sure, the answer might be less than you want. It might even be a flat no. Don’t get angry. Instead, thank the person for considering.
In some cases, it may make sense to try a second or even third time if your first attempt fails. That can be the case when asking for a lower interest rate on a credit card or a better deal from your cell phone provider. It may not work as well with your landlord.
Of course, if it’s not the right fit, you can walk away. This is where you have a lot of power, but you have to be willing to do it, even if you want the item badly. You might be surprised with a call after the person has some time to consider your offer.
Making the case
When negotiating down a rent increase, I typically point out that:
I always pay rent on time, every single time
I have never had any noise or other complaints from neighbors.
I maintain the apartment so it will be in good condition when I leave.
It’s much easier for a landlord to keep a good tenant than risk trying to find another renter who might not be as responsible.
There’s no guarantee that this will always work, but it hasn’t failed me yet, so I’m going to keep doing it.
Nervous? Try role-playing
Role-playing the conversation with a trusted friend or relative ahead of time can help. Have them run through a few iterations of the conversation. These can include:
One where they really haggle with you
One where they just flat-out say no
One where they get angry
And one where everything goes your way because, heck, you don’t want to be thrown off if it does.
I’d suggest recording the conversation on your phone. It will seem cringeworthy when you listen to it after the fact, but reviewing it can help you learn from it.
Another recent success story
I also recently purchased a car. I knew there was not a ton of room for negotiation in this market, but that wasn’t going to stop me from asking.
I even make this a game for myself. How low can I get someone to go? It makes me braver asking.
If you’re unsure where to start, here are some tips.
The “standard” ask is 15-20% off. Most people don’t find that too offensive. Start there if you’re a beginner negotiator.
Don’t be afraid to start with a slightly bigger ask. I sometimes start by asking for 30-40% off, knowing we’ll likely land at 15-20% off. That way, it looks like I’m making a concession on my end, knowing the final price will be less off than I want but hoping they might take that offer,
If you’re feeling really courageous, ask for 50% off. Heck, the person may just really want to get rid of the item quickly and isn’t particularly interested in haggling.
Of course, this all depends on the item. The more popular it is, the more you’ll pay because the seller knows they can get a better price. That’s just business.
This time around, I made the case that the car had already been on the lot for some time, that we were referred to the dealership by family because of its great pricing, and the dealership was willing to sell the car for less a few days ago during a Labor Day sale, so why not honor that price now?
Did I have to walk away? Yes, even though I knew my current car might not make it home.
Did they call me back? Yeppers.
Did I ultimately get the price I wanted? No.
Did I get a fair price? Yes.
Did I get more off than they originally offered? Absolutely!
What’s your rent negotiation story?
Big thanks to Niccole for sharing her stories and wisdom!
Of course, there’s no guarantee that you’ll be as successful as she has been in her negotiations, but you certainly can be. Either way, you won’t know if you don’t ask.
Got a success story of your own involving negotiating rent? Or maybe you’ve got a horror story of overpaying? Share it below!
Until next time!
Matt