Bad news for landlords: The vacancy rate has reached 7.8 percent, a 23-year high, and is expected to climb even further in the coming months, according to Reis Inc. And RREEF Research says the apartment market faces “one of the most challenging and complex environments in modern history.”
Bad news for landlords, good news for renters, who can negotiate lower rents and better terms. According to a recent article in the Wall Street Journal, landlords are doing just about everything they can think of to retain tenants—slashing rent, providing upgrades, and even offer flat-screen TVs to renewing tenants.
If your lease is about to expire, scout your neighborhood to see the rent on vacant units. You might be surprised to find that you are paying 10 percent higher than comparable vacancies on the same block. Then call your landlord and ask to renegotiate the lease. If you cannot get a lower rate, how about new paint? Will the landlord install a new ceiling fan? Maybe the landlord will provide you with an extra storage or parking space if you play hardball.
And if you know you are going to remain in the neighborhood for several years, think about asking for a two-year lease. Though the rental market is suffering now, experts predict it will be one of the first to rebound.
