How to Rent Below the Fair Market Value
Fair market value is the highest price that a prospective buyer is likely to pay and the lowest price that a seller or landlord is willing to accept for a particular property. The easiest way to determine the fair market value of a rental property is to ask a local real estate agent for comparable rentals. Then consider the following tips for renting a property below fair market value.
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Instructions
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Renting Below Fair Market Value
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Ask for a deal. Especially in a challenging economy, many landlords are willing to rent space for less than fair market value rather than having a place that sits empty. Negotiate based on other rental rates in the area and be firm with your top dollar.
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Rent from a family member or friend. Many friends and relatives are willing to give their loved ones a deal on rent. Be fair and treat them with respect as you negotiate your below fair market value monthly rent.
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Sublet or sublease part of the space. By subletting, you will make back some of your costs and further reduce your monthly rent check. Make sure your renter is reliable and comes with good references before you sign an agreement.
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Finally, renegotiate your current rent. If you have a clean track record and have reliably been paying your rent on time for several years, talk to your current landlord about a new deal. It is generally a lot easier to keep a current renter happy than to try to find a new one, so many landlords will consider this option.
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Tips & Warnings
Negotiate, negotiate, negotiate. Everything is up for discussion.
Make sure you have an escape clause if you need to leave the lease early.
