How to Negotiate a Lease Agreement

Understanding your negotiating power in leasing a home is a great way to leverage yourself as a strong candidate. Negotiating leases under challenging circumstances (ie., bad credit, unemployment, eviction history) will vary based on your offer and the amount of calculated risk the landlord is willing to take on. If you are in excellent standing with your credit, employment, and rental history, you may be able to negotiate additional benefits with your lease.

Things You'll Need

• Credit report
• References (ie., personal, professional)
• Check or money order

Instructions

1. Obtain a copy of your credit report. Contact any or all of the 3 credit reporting bureaus (Equifax, TransUnion, Experian) and review your history. This is the information a rental agency will use to decide the risk they may incur leasing to you. Check for accurate information, and correct any item that is untrue or out of date.

2. Prepare a list of references (personal and professional) to use to support your credibility as a tenant. Include current and previous employers and colleagues; and previous landlords and credit references. Ask your references for a written statement regarding your credentials, or for contact information to provide the landlord.

3. Ask the landlord what criteria is most important in selecting future tenants. Offer your plan to provide documentation and support that you meet these credentials. Provide them with a copy of your credit report (from Step 1), letters explaining any negative information on your report, and a list of references (from Step 2).

4. Offer additional security deposit funds, or 2-3 months rent up front upon signing a lease agreement. Offer to pay 2-3 months at a time during the course of your lease.

5. Get the agreement in writing. Once you and the landlord have come to an agreement, be sure the agreement is documented in detail and signed by both parties. This ensures you are both protected and responsible.

Tips & Warnings

• If you have excellent credit, ask to negotiate benefits on your lease. Ask for any of the following: a discounted rent (less than 10%) with a one year lease signing; additional month free of charge at the end of the lease term; waiving move-in fees if applicable; or cash or rent bonuses for referring others to rent with their agency.

• If you are planning on living in the home for over a year, ask if you can lock-in your rental rate during the entire terms of the lease.

References

• Bankrate: Contact Information Credit Bureaus