If you feel like you’re overpaying in rent for your apartment or home, now might be the best time to ask for a rent reduction.

When we moved into our apartment over two years ago, the asking price for rent was on the high end of average for this area, the Hollywood neighborhood of Los Angeles .  However, since it was difficult to find a place that would take two large dogs, we signed on the dotted line.

Fast forward to 2009.

In this slumping economy, the average rent has gone down significantly in Los Angeles as more and more people move out of the city. After repeated online searches, I found many apartments in our area that not only were $200 - $300 cheaper, but most were now taking dogs! The straw that broke the camel’s back, however, was that I came across a listing for an identical apartment in my very own building that was $300 less than what I was paying! Oh no they didn’t!

I figured that I either had to move or ask for a rent reduction. Since the latter is much easier, I tried that first. With this month’s rent check, I included a letter asking for a reduction in my rent. I kept it professional and stated my reasons clearly: the economy is in a slump, rent is down in every building in this area, and even this very building was charging less for new tenants. I also stated that if a rent reduction wasn’t available, I would have to move and take advantage of all the other opportunities out there. As icing on the cake, I offered to sign a new 12-month lease. (I have been living lease-free for the past 15 months after my initial lease expired.)

I wasn’t 100% confident that my building’s management would give me the rent reduction, but the odds were in my favor.  If they didn’t agree to reduce my rent and I moved out, they would end up renting this apartment for what I was asking for anyway.  On top of that, they would lose money (time=money!) while the apartment got cleaned and painted over, not to mention the uncertainty of how long it might take to find new tenants.  I know for a fact that my building has been trying to fill that 1-bedroom for at least 6 weeks and counting.  Having me move out has no pros for them at all, yet agreeing to my rent reduction would assure a tenant for at least 12 months during a time when buildings are losing tenants in droves.

So on the first of this month, I delivered my letter along with my usual rent check.  Today, June 10th, I signed a renewed, 12-month lease for a new monthly rate that is $300 less! WOOHOO! I am so glad that I went ahead and asked for it and only wish that I had done it sooner.  For anyone in a similiar situation, do it!  You really have nothing to lose and a whole lot ($$) to gain!

Update: Don’t know why I didn’t post this when I first wrote this entry, but as requested, here’s a basic template based on my rent reduction letter that worked to get my rent reduced $300.

Dear Management [or the name of your manager if you know]:

After having lived in this building for over # years now and dealing with the changes in the economy and cost of living, we have been looking for ways to reduce our expenses.  One option is to move out because the rent is much more affordable in almost every other #-bedroom apartment in [city].

[This next part was just specific to my situation.]

We have noticed that you currently have a 1-bedroom apartment in this building available for only $xxxx and a 2-bedroom for just $xxxx, a mere $100 more than the $xxxx a month we are currently paying for our 1-bedroom.

The market and the economy have changed tremendously since we moved in and we would like to request a reduction in our rent to bring it to what is now normal for a x-bedroom apartment in [town]: $xxxx a month.  If necessary, we will sign a renewed 12-month lease starting [date] so you can be assured that you’ll have a rented apartment in this building for at least 12 more months.

We very much would like to remain tenants in this building but we are definitely over-paying when there are numerous apartments available for much less, even in our own building.

Please let us know your decision regarding this as soon as you can.  Thank you.

Sincerely,

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