Call landlords bluff on rent increase?

[Dan44]

Hey everyone. I know there are a couple people on this forum that are landlords and may be able to give some advise.

Me an my Gal inquired about an apartment 2 months ago and they told us the rent would be 1676 for 12 months. However they had a 2 month lease option for 2 months for 2100 per month. We decided to do the 2 month option to test out the area first.

Our lease is up soon and we got a renewal letter for and now they want to charge 1806 for a 12 month lease. We wrote the leasing agent a email asking if they can honor the original price we was told but in so many words she said no, that the rent pricing "fluctuates" on a day to day basis.

Do you guys think I should call her bluff and tell her we will not be able to afford it and see if she gets back to us before we actually start to move and drop the price? Or is it unlikely that she will budge on the price?

It pisses me off because I feel she may have did it to us because she seen since we moved in that I drive a newer BMW and is maybe taking advantage of that. Or I could be wrong and they do it to everyone, Idk. Just the thought is pissing me off and I needed to vent a little. They know we probably dont want to go through the process of moving again also and are more likely to pay the increase.

 

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[jon.a]

You've already shown that you can pay $2100. A bad thing.

The difference is $1560 over the year, which is less than what one months vacancy would cost her. Plus, a couple hundred for tenant screening and to get the unit ready.

Plus, she already got a healthy premium for 2 months.

Plus, you're a good tenant.

Remind her of these things.

Research your market rate verses her offers and counter accordingly. I don't negotiate myself because we already price at about 10% under market to increase the prospect pool.

The question comes down too, do you not want to move more than she doesn't want the vacancy?

 

[ZCP]

Compromise. Show why it is to the landlord's benefit to have you there. Saved me a bunch of money in college. Guarantee I was the only student that went to his office with a presentation on why my rent should be lower.........

 

[Determined2012]

I wouldn't pay it. Everything is negotiable, and she is only doing that to you because you have shown her that you CAN pay that amount.

I would MOVE if it came down to it, because I would not let her take advantage of me that way...whether I wanted to move or not. Its the principle of it all.

 

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[SteveO]

They are pulling a fast one on you. You are in the place now so they figure that they have you over a barrel. If you threaten to walk, make sure that you are prepared to do so.

 

[Dan44]

Thanks for the reply's and insight. Yea I'm trying to mentally prepare my self to move. I'm a principle man and Determined2012 hit it right on the nose. I was gone all day running errands and it wasn't on my mind. However soon as I passed the leasing office on my way in I immediately became pissed and I know that will happen everyday if I decided to stay.

 

[Vigilante]

1. 90% of newer BMW's are financed. It doesn't mean you have money. In fact, it might mean the opposite.

2. A few months before my lease is up I am going to propose a 20% rent decrease and see what happens.

3. To get the right deal, you can't be bluffing. You must be willing to bail.

 

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[daivey]

yeah that sucks. bad call on taking a 2 month lease at 2100 though. not sure i get the logic on that one...

 

[biophase]

Tell her you'll pay the $1676. And tell her you need to know quickly so that you can have time to look for another place.

 

[ZCP]

Next time negotiate the continuation rate before signing......

 

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[AgainstAllOdds]

What city are you in?

 

[Dan44]

This is in wappingers falls N.Y

 

[MKHB]

Run....

Nothing about this LL smells right.

Also, I have never heard of the try it out for 2 months option plan??? This is a new one for me.

As a landlord my main goal is to avoid turnover, and as an add on to jon.a's point offering a two month option makes no sense, seeing if you vacate she is out al least one month, administrative costs in. Resenting any any potential make ready costs for the interior of the unit.

Vigilante is right, throw her a "wet noodle" rent decrease of 20% - see if it sticks and if does not, good riddance.

You have received your red flag - this LL is trouble.

 

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[SimonP99]

Hey everyone. I know there are a couple people on this forum that are landlords and may be able to give some advise.

Me an my Gal inquired about an apartment 2 months ago and they told us the rent would be 1676 for 12 months. However they had a 2 month lease option for 2 months for 2100 per month. We decided to do the 2 month option to test out the area first.

Our lease is up soon and we got a renewal letter for and now they want to charge 1806 for a 12 month lease. We wrote the leasing agent a email asking if they can honor the original price we was told but in so many words she said no, that the rent pricing "fluctuates" on a day to day basis.

Do you guys think I should call her bluff and tell her we will not be able to afford it and see if she gets back to us before we actually start to move and drop the price? Or is it unlikely that she will budge on the price?

It pisses me off because I feel she may have did it to us because she seen since we moved in that I drive a newer BMW and is maybe taking advantage of that. Or I could be wrong and they do it to everyone, Idk. Just the thought is pissing me off and I needed to vent a little. They know we probably dont want to go through the process of moving again also and are more likely to pay the increase.

I am a landlord in a market where the rental market is extremely hot. What is your market like? Are good rentals easy or difficult to come by? Is $1806 a fair rent for the apartment? Could you get something comparable for less? Are all the other apartments in your building rented? Answer these questions then decide if moving to save $1560 over the year is worth it to you. If you are willing to make the effort to move then give them the take it or leave it offer for $1676. Don't take things personally just do the numbers and do what's right for you and your gal... All the best

 

[Dan44]

Yea 1800 is definitely not a fair price. The general specs are 1br/1bath/little loft upstairs/wood fireplace. For 1795 I could go to a complex that has 2br/2 bath and connected garage new construction has not been lived in yet.

 

[jon.a]

Yea 1800 is definitely not a fair price. The general specs are 1br/1bath/little loft upstairs/wood fireplace. For 1795 I could go to a complex that has 2br/2 bath and connected garage new construction has not been lived in yet.

Tell her that

 

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[jon.a]

There could be another factor in play, if she is a property manager. They often get 1/2 to 1 months rent for filling a vacancy. If that's the case she want's you to move.

 

[DKNJ]

Thats a big jump. I'm in an apartment building with a management company. I've lived here for almost 4 years. Every year rent goes up around $70 a month. The parking garage is under construction every year. This year they did a huge maintenance renovation in the garage that took a few months. They're definitely gonna raise it when my lease is up in a couple months. I'm looking for something private owned hoping not to get a landlord like yours. She seems like she's playing games. Even if she honored the original price, with your 2 months, she still made a little extra than if you went with the 12 month lease to start with. Now that you're all moved in and comfortable, she feels she has some leverage. I would hate to see her win this one.

 

[Dan44]

I dont know whats going to happen just yet. I would also hate to see her win this.

Went to look at some apartments today which are still under construction however half of the complex is done, link here http://goo.gl/Yq75SC
How does someone go about building one of these complexes? Are they owned by a single person or are there multiple investors? Anyone on this forum own something similar?

 

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[jon.a]

I dont know whats going to happen just yet. I would also hate to see her win this.

Went to look at some apartments today which are still under construction however half of the complex is done, link here http://goo.gl/Yq75SC
How does someone go about building one of these complexes? Are they owned by a single person or are there multiple investors? Anyone on this forum own something similar?

http://www.diversifiedra.com/existprojects.html

scroll down to mid page

 

[MKHB]

It sounds as if you do not have a "tenancy for a specific time" agreement (executed written lease),therefore; you have a periodic tenancy (month to month) and your tenancy can be terminated with a 30 day notice.

And, I don't believe that there is any statutory protections in your state (NY) that caps the LL's ability to raise rents on a M-T-M arrangement.

However, if you can afford to pay $2,100.00 and drive a nice care, maybe it's time buy.

Depending on your effective %- $2,100.00 rent payment is equal to a $2,700.00 mortgage - and that's not including any depreciation realized from any improvements you may make.

 

[Dan44]

Yea its not time to buy just yet. I need another income. My current income is not reliable enough(drop ship business) some months are profitable, other months are very low on sales. My Gal hates her 9-5. I don't know how much longer she can take it and I don't want her under that pressure.

 

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[MKHB]

Yea its not time to buy just yet. I need another income. My current income is not reliable enough(drop ship business) some months are profitable, other months are very low on sales. My Gal hates her 9-5. I don't know how much longer she can take it and I don't want her under that pressure.

10-4. Been there done that!

However, great thing about being a Fastlaner is that when the time comes and you're ready to buy.....

You can get an SBA at 2 3/4% for a cool, live-work commercial-residential loft style place - set up in a Hub Zone - get a bunch of tax credit - make money Fastlaning - and also make passive income by renting additional to other budding fastlaners. Have the best of all worlds!!

 

[brickco]

I can't believe no one has mentioned this (negotiation 101): Are you sure you're dealing with the decision maker? If she says it fluctuates daily, then maybe she's not lying and trying to screw you. Maybe her boss says "use this formula to determine rents and don't deviate".

If you're going to try to negotiate, at least make sure it's with the right person.

Also, they key to being successful in ALL negotiations is to have the superior BATNA. If you find another apartment that's cheaper and better, then you have nothing to lose, and then it won't matter if they're bluffing or not. Maybe she can find someone tomorrow who's dying mother lives in that building who would pay 10,000 per month, it's impossible to know, which is why you don't think about winning or losing, just getting the best deal for yourself. Emotions are dangerous.

Edit: for what it's worth, I'm a landlord and our city's current v-rate is over 10%. Some months I feel like I would literally accept anyone.

 

[MKHB]

I thought jon. a, Vigilante , Bio P. and Steve among others, brought up negotiating?

 

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[biophase]

I'm getting the feeling that you really want to stay.

It all comes down to risk/reward. You took a 2 month lease knowing the rate could jump later because you didn't want to get stuck in a place for a year. The landlord took and mitigated that risk by renting to you at $2100. So he gained about $1000 to use in marketing and cleaning just in case you left after two months.

Now that 2 months has come, he can price the place whatever he wants. Maybe he's gotten someone ready to sign at $1750? So maybe he doesn't care if you move. He's not being a dick here. If I can get $1850 for a place why would I rent it for $1650? You can bet his agent is already marketing it. It would be silly for her to not market it. She can call you tomorrow and tell you someone signed a lease so you can't stay, even at $1850.

 

[Dan44]

Its my first apartment. When I signed on for 2100 for 2 months the thought didnt come across my mind that after that lease is up the apartment price would not longer be 1676 for 12 months. My fault I know. Had I known you could "negotiate a continuation rate" rate as @ZCP mentioned would have did that.

 

[biophase]

Its my first apartment. When I signed on for 2100 for 2 months the thought didnt come across my mind that after that lease is up the apartment price would not longer be 1676 for 12 months. My fault I know. Had I known you could "negotiate a continuation rate" rate as @ZCP mentioned would have did that.

Hi Dan,

You live and learn. I signed my first lease in college and it was a long ordeal. This is a good lesson because now you know that everything is negotiable. Even if they say it isn't. Always just think that on the other side is a human.

In your situation, I just wanted you to realize that while you are going through this decision process, you can still lose the place. Even though she offered it to you at $1806, if you agree to $1806 it doesn't mean you get to stay. She can say it's now $1900, or it's been rented, or we require a 30 month lease. Nothing is final until the lease is signed.

Can you really find a better place for $1800? If so, you should be looking and negotiating a lease right now. You don't need to take it, but you need leverage and/or a backup plan.

 

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[MKHB]

Hi Dan,

You live and learn. I signed my first lease in college and it was a long ordeal. This is a good lesson because now you know that everything is negotiable. Even if they say it isn't. Always just think that on the other side is a human.

In your situation, I just wanted you to realize that while you are going through this decision process, you can still lose the place. Even though she offered it to you at $1806, if you agree to $1806 it doesn't mean you get to stay. She can say it's now $1900, or it's been rented, or we require a 30 month lease. Nothing is final until the lease is signed.
^^^ Right on the money.

 

[Pete799p]

All depends on the market. In my neck of the woods if you call their bluff be ready to move. That being said even in a tight market there are always opportunities for creative folks to find deals.

Hi Dan,

You live and learn. I signed my first lease in college and it was a long ordeal. This is a good lesson because now you know that everything is negotiable. Even if they say it isn't. Always just think that on the other side is a human.

In your situation, I just wanted you to realize that while you are going through this decision process, you can still lose the place. Even though she offered it to you at $1806, if you agree to $1806 it doesn't mean you get to stay. She can say it's now $1900, or it's been rented, or we require a 30 month lease. Nothing is final until the lease is signed.

Can you really find a better place for $1800? If so, you should be looking and negotiating a lease right now. You don't need to take it, but you need leverage and/or a backup plan.

I agree with this, your pipeline can never be too full, meaning with ample alternatives your risk of losing this deal is substantially reduced. If you really want to negotiate and you think you can find a better/cheaper place then start looking asap.

I would also at least counter her offer before accepting it. If she is a leasing agent I would imagine she gets paid if/when you ink the deal so if you would really take the place for the previous price and are ready to rock and roll I would call her up or stop by ready to stroke the check and tell her that you'll ink the deal right now for the previous price. It also might be beneficial to get some insight into how she is being compensated. At least on the commercial side of things renewals tend to be lower then new deals. If that is the case then her desire might be to find a new tenant in order to get a bigger check. If that is the case you can always offer to make up the differenceif she can makes it happen. Depending on the fee gap it could still be cheaper then paying the increase.