How to Negotiate a Lease Renewal

When your rental lease is almost up and you don’t want to move out, you may have the option to negotiate new lease terms. Maybe you like your current place, but you don’t want to risk your rent going up if you stay. Maybe there aren’t a lot of other rental options within your budget, or maybe you’re looking to go month-to-month before your next move. Negotiating the terms with your landlord before renewing your lease may be just what you need. The key to negotiating a lease renewal with your landlord is to show them you’ve been a good tenant and are willing to compromise. Here are some tips on how to prepare for your lease renewal negotiations like a pro.

Read your lease in full

Rental lease agreements are legally binding documents. You’ll want to go through yours so you can be sure about when your rental term will end, and learn more about your renewal rights. That could include if you’re allowed to renew your lease at all, so read thoroughly.

If there are parts of your lease you’d like to change, like the rules around decorating or any fees you pay, be sure to note what your agreement says so that you’re able to make informed negotiations with your landlord or property manager.

Do your research

To bolster your case, research your local rental market before you meet with your landlord. This could help you get what you want and avoid surprises during your conversation. 

If you’re looking to lower your rent, know how low you can reasonably go. Check your area’s average rent on Zillow’s Rental Market Trends site. You could also browse similar rentals in your area on Zillow and see how much they charge — i.e., if you live in an 800-square-foot, two bed, one bath apartment, look for other apartments nearby with those same specifications. Then you can figure out a reasonable amount to aim for.

You can negotiate for a number of things beyond a lower rent payment. You could also negotiate for lower fees, like your monthly pet rent or any parking fees. Other options could include getting a portion of your security deposit back, or asking for some utilities to be included in your rent. Note what amenities other local apartments in your price point have — like an art room, for example — or how they’ve been updated in recent years (new appliances), and so on. Think of all your options. 

Know what you’re willing to compromise on

Think about your must-haves and your nice-to-haves in your rental. There could be opportunities to request changes in your next lease that are of value to you, even if it’s not one of your top-line items. You should also decide on the things you are not willing to compromise on, like keeping your rent under a certain amount. Ask yourself what your bottom line is, and be ready to stick to it.

For example, if your landlord didn’t allow cats or dogs before, consider negotiating those restrictions now that you’ve shown how you’re a good tenant. Or even negotiate to lower your rent. If they’re firm against your proposals, are they willing to budge on letting you paint your bedroom? You could get creative here.

Prepare to prove how you’ve been a good tenant

You want to show your landlord that you’ve been a good, reliable tenant who they want to keep around, as opposed to taking a risk on how their next tenant will behave.

Have you always paid your rent on time? Have you taken good care of your unit? Mention those points and any others that would help you look good. To take it a step further, you could even ask your neighbors if they would write a letter to your landlord that vouches for your character. 

See things from your landlord’s perspective

Most landlords don’t want to deal with tenant turnover, as it can be costly for them and tough to fill the vacancy, depending on the market. This could work in your favor, but it can only take you so far.

Think about what matters most to your landlord. Then you can find common ground and angle some of your requests to fit into that. For example, if you understand that your landlord's primary goal is to maintain occupancy, you could propose signing a longer lease term in exchange for the changes you are interested in making. You might also consider discussing your landlord's priorities and how you can contribute to them as a tenant. Demonstrating your interest in their needs can be appreciated. For instance, if you are seeking permission to make upgrades, such as changing the wall color or updating the kitchen drawer handles, show that you have researched changes that can add value to the property.

Doing these things can help you strike a more empathetic and informed tone during your conversation. Owning a rental property can come with its challenges, and some of your requests could help ease some of that. 

Don’t wait until the last minute

Reach out to your landlord and set up a meeting as soon as you know that you want to renegotiate your lease — but you don’t have to meet immediately. Schedule it a week or two in advance so you have time to research and prepare your case. The more time you give both parties, the better.

Sometimes your landlord may be willing to renegotiate with you and get things signed all in one day, but do not try to rush anything. Again, your lease is legally binding, and everyone signing it should take time to consider the others’ offer. Take time to think things over. 

Your landlord will likely give you at least a few week’s notice that your ongoing lease is almost up. And they’ll give you a deadline to let them know if you’ll be moving out or renewing — usually 30 to 90 days. If you propose a renegotiation the day before your decision is due, that could frustrate your landlord and make them less likely to work with you.

Be respectful

As with any conversation, you want to be reasonable and respectful when you’re renegotiating your lease. Even if you’ve had moments of frustration towards your landlord, bring your best self to the table. Listen and find a way to compromise; you’re coming here to have a two-way conversation. 

In the case that you don’t get what you want, you should still keep up a respectful, good attitude and explore alternatives on the market using Zillow.

Bring in legal advice, if you need it

Every lease is different. Your lease renewal rights, renewal notice periods, and administrative fees may vary based on local laws. Getting a legal expert’s perspective before you start renegotiating your lease could give you insights into what to ask for, as well as what to look out for.

A rental lease is a legally binding contract, and it can be filled with legal jargon. It’s helpful to know your rights as a renter (for example, many states have laws that require the windows and doors to be operable and secure in every rental). A lawyer could also warn you about terms that could work against you, like agreeing not to report certain safety issues to the city.

You can also tell them the changes you’re hoping to make to your lease, and they can give you feedback on whether those things comply with the law in your area.

Get everything in writing

Once you and your landlord have come to an agreement, get all your terms written into your new lease, and have all parties sign off. Otherwise, neither of you would have to honor anything you agreed to during your conversation. If you’re working with a lawyer, have them look over your new lease — before you sign — and check that everything looks good.

Be willing to walk away 

Despite your best efforts and preparedness, your landlord may not want to change anything in your lease. If you are pretty set on getting an added benefit or more affordability wherever you’re living, and you have the ability to leave, then plan for the possibility of moving out.

Make a short list of apartments you like before meeting with your landlord, so you know you have options and don’t have to settle for terms you’re unhappy with. You have tons of rentals to choose from on Zillow, so you can find a new home with ease.