I received my lease renewal and my landlord is keeping the rent the same as this past year! I love my doorman loft building; I have a killer view of the city and an amazing kitchen (one day it will inspire me to start cooking so I can save money on eating out). My rent is a lot; I spend about 45% of my monthly salary on rent. I’d resign it in a second, but there is a chance my whole department is getting laid off in the fall. But, moving is a total bitch…
Oh honey, it’s time for some tough love, sit down.
Not only should you not resign the lease on those terms, but it’s time to take stock of what’s an absolute necessity and what is icing on the cake.
If you must stay in this apartment ask for a 30% rent reduction. Go online and pull articles from your local papers that talk about the current rental climate and prices. If you have always paid your rent on time and have not had problems, you will have ammunition. Meet with your building manager in person, be very polite, wear a big smile, and flirt if you have to. A little sugar always helps…
Remind them it will cost them more to repaint, renovate, pay a brokers fee and possibly have the apartment go vacant.
If they don’t agree it’s time for you to move on and find an apartment that costs about 33% (or less) of your monthly rent. We’re in scary times right now and if you may not have a job in a few months, you should be working toward cutting down your monthly costs as much as possible.
Things to consider:
1. Do you absolutely have to have a doorman? Really, how many oversized packages do you receive? You know what I mean.
2. If you don’t cook, look for an apartment with a sub par kitchen, you’ll save a fortune.
3. If you like to keep in shape look for a high floor walk up. Think of it as a free stair master as a lease-signing bonus.
4. Find a friend to look for an apartment share with, you can cut your utilities, cable, internet, etc in half.
5. Ditch the view. I’m not suggesting you move into a cave, but you are paying a premium for those postcard panoramas.
6. Ask your friends for their building managements contact information. You may be able to find a great deal not available to the general public. Send a mass email, put it in your facebook status. Put the message out there!
7. Canvas buildings in your favorite neighborhoods and try to go direct. If you do the legwork yourself, you can save a lot of money.
8. Work with a trusted, knowledgable broker to help you. Ask friends for referrals. Many landlords pay the broker’s fee or help pay the fee in a down market.
I know digesting this isn’t easy. But it’s time to face reality and live within your means. I’m not suggesting you live in a rat infested 6th floor walk up on the wrong side of the tracks. Remember this is short term and if you can set aside the difference of 15%-20% a month over the next year and keep it up for a few years, you will save enough for a down payment to purchase your own home and then you never have to worry about rent increases again…
Jason Saft is a Senior Sales Associate with Citi Habitats Real Estate in Manhattan. He has been featured on HGTV’s Buying & Selling: 20 Best-Kept Secrets, The Today Show, Haute Living, AM NY and The New York Post.
