Save me from living with roommates, please.

July 16, 2010 3:34 AM

How negotiable is rent in Toronto right now?

I need a new apartment for September, and I'm on a pretty tight budget right now. I'm looking for a one bedroom or a bachelor apartment in the U of T area, or roughly thereabouts. (Basically, I wouldn't want to be more than a 30 minute walk from campus. That's about when I start getting lazy and taking the TTC.)

Suppose that I see an apartment that I like, and it's slightly more expensive than I'm comfortable with. I've come to the viewing neatly and professionally dressed, with my cheque book, references, employment letter, etc. (All of which will check out fine.) Suppose, then, that I say to my prospective landlord: "Hey, if you're willing to shave $100-200 a month off the rent, I will write you a cheque for first and last month's rent right now."

I've never tried to negotiate rent before. Is this rude? Am I likely to be laughed at? Will anyone oblige? Is the Toronto rental market working in my favor right now? (I'd imagine that the competition for campus-area housing in Sept is pretty steep, sadly.) Is there anything else I can do to ensure my success in negotiating rent? (I know you have more leverage if you're willing to sign a multi-year lease, but I'm not sure I want to commit to more than a year without having lived in the place for a while.)

posted by mellifluous to Work & Money (12 answers total)

It doesn't matter whether it's slightly more expensive than you're comfortable with, because the landlord won't care about the comfort of a total stranger. What matters is whether it's more expensive than the market will support. In other words, the reaction you get will depend on the particular apartment, the particular asking price and the particular landlord. Generalities about the Toronto market aren't going to be all that useful by themselves.
posted by jon1270 at 3:43 AM on July 16, 2010

Best answer: You'd be expected to write a cheque for first and last immediately, even at the asking price. I don't see this working, especially if you want $100-$200 off.

Other ways to save money/negotiate: Look for basements. If an apartment in a house, offer to be responsible for some house task that the landlord would otherwise be responsible for (lawnmowing, snow shovelling, leaf raking, gardening), offer to do any improvements the landlord plans yourself (e.g. painting, not actual renovations), something around utilities (I'm thinking if utilities are included, offer to pay them (then don't use much), or agree not to install an AC).

It seems unlikely any of this would get you $200 off though, except for the basement.
posted by If only I had a penguin... at 4:06 AM on July 16, 2010

Best answer: I think it kind of depends what sort place you're looking at right now. I've found that the big tower blocks run by rental companies tend not to be willing to negotiate, at least not much. They pretty much set their fees on what the market will handle.

Perhaps individual landlords would be more willing to negotiate? Especially so if they've priced their apartments too ambitiously.
posted by generichuman at 4:40 AM on July 16, 2010

Best answer: Individual landlords will negotiate if they like you and its a renter's market (don't know what it's currently like in Toronto right now). Realistically though, your chances of getting more than %10 off the rent is pretty much zero. And I doubt your looking at anything much higher than 1K/month there, so 100 off would be the maximum discount you could possibly expect.
posted by molecicco at 5:05 AM on July 16, 2010

I've come to the viewing neatly and professionally dressed, with my cheque book, references, employment letter, etc. (All of which will check out fine.) Suppose, then, that I say to my prospective landlord: "Hey, if you're willing to shave $100-200 a month off the rent, I will write you a cheque for first and last month's rent right now."

The landlord says "I have 5 showings after this one; if you don't want it at this price, you can continue looking."

You can be the best tenant in the world, but right now the friends I have in Toronto who are looking for a half-decent place are having to come to the door with a damage deposit just to have a chance at renting.

This changes if you're in the top 1% of the market, however, but I doubt if you're $100-200 per month away from being unable to afford a place that you're in that grouping.
posted by Hiker at 5:08 AM on July 16, 2010

Best answer: We rented out a place in Toronto for June 1, and if anyone had asked us to drop the rent we would have said no. We didn't need to; we had maybe six offers at the (reasonable) price we were asking. That said, we didn't make anyone write cheques on the spot, either- we let them come back twice to see it and agreed to some substantial cosmetic fixes before they took it.

Also, if you're planning to live alone, you're looking at maybe $700-1000 depending on the kind of apartment you take. $200 off in that price range would be a huge ding for the landlord. If they like you, though, they might knock off, say $25-$50, or agree to install a washer/dryer or something like that- I have seen landlords make that kind of deal.
posted by pseudostrabismus at 5:18 AM on July 16, 2010

Response by poster: Ok, I'm going to just forgo all attempts at negotiation. Thanks, guys.
posted by mellifluous at 5:49 AM on July 16, 2010

I'd say it can't hurt to try in a low-key way. Definitely don't make any ultimatums, but just say the price is maybe a bit out of your budget and/or offer to do some work around the place in exchange for a lower rent. If the landlord doesn't show any inclination to dicker, then drop it, knowing you gave it a shot and you'll have to pay full price if you want the place. I'm going to be renting out my basement apartment soon and I don't plan to lower the price for anyone, but I won't hold it against anyone who tries to get me to lower it as long as they are polite about it.
posted by orange swan at 6:11 AM on July 16, 2010 [1 favorite]

Beware; damage deposits aren't legal in Ontario -- doesn't mean there aren't sketchy landlords asking for them, but -- they'd be sketchy.

The only time I have even considered asking for this sort of thing is with a small landlord with an apartment whose condition is not up to scratch. If you find something a bit trashed that you still like, politely point out the problems, ask for $50/mth off -- though in my experience the response will be "I'll get that fixed up before you move in" (NB: ask for that in writing).
posted by kmennie at 6:14 AM on July 16, 2010

Absolutely what orange swan said. It never hurts to gently insinuate you'd just love to get the place if only it were a little cheaper. "Is there anything you can do?"

You almost certainly won't end up saving much money, but you almost certainly will save some.
posted by wrok at 7:40 AM on July 16, 2010

I've always given cheques for first and last immediately, with the first post-dated to the start of the lease, and have never had a landlord have a problem with it.
posted by avocet at 7:41 AM on July 16, 2010

I don't know about the Toronto market, but I've always negotiated when moving into a new place. I think, as said above, it's easier if it's not a huge management company, and also if you and the manager click. Whenever I reach a deal with a manager it's almost like finding a romantic partner--we both have the feeling that the place and I are a good fit, and we're able to come to a compromise pretty easily. Obviously this works best if you're the kind of desirable tenant they're looking for. All of this is just to say, I don't think it hurts to try. I usually phrase it sort of like: "I love the place, but I have to be honest. My budget is closer to $X, is there any way you can take that?" and let the negotiations begin.
posted by Bella Sebastian at 11:40 AM on July 16, 2010 [1 favorite]