As a renter, I am subject to potential rent increases. This year was no different, but I was successful in getting the increase reduced significantly by writing a letter to the manager and management company.
This could potentially save you some money, as long as you have been a good renter (paid on time, haven't had 20,000 noise complaints, don't use the apartment for science experiments, etc.)
To: Manager Name - Manager 9/4/2009
Apartment Complex Name
Dear (Manager name),
Thank you for your letter offering us lease renewal options. This letter is in response to that previous letter sent to my household concerning our rental lease renewal options for our lease ending on 10/19/2009 and the subsequent conversations we have had since then in person and by phone.
My household is unable to sign a new twelve-month lease agreement with (Property Management Company) with the current terms, however we understand the interest in your company maintaining a positive cash flow and occupancy of my unit with a 12 month lease in these economic times and thus respectfully offer the following modified terms.
My household is willing to sign, immediately, a 12 month lease for our current unit with the following modified provisions:
A monthly rent amount of #########, which represents no increase in rent from our previous lease agreement.
My household has been an (Property Management Company) customer for two years now, but after our lease renewal options were presented we looked at available and comparable units in the (your county area), both (the neighborhood you are in) and in other areas. Simply put, there are many units available that are not with (Property Management Company) that are much more economical in their pricing structure. Many start at a lower monthly price, and also offer rent credits that range from two weeks to a month of free rent with a new lease being signed. We have a good history with your company and would like to continue our relationship if possible.
We recognize the economic situation, and believe this represents an equitable compromise. (Property Management Company) is facing many revenue challenges, as is our own household. By accepting these modified terms, (Property Management Company) maintains the following advantages.
My household represents that of a "model tenant." My household presents rent checks on time, and in the majority of cases, early rent checks are presented. This represents an uninterrupted revenue stream. The savings from keeping your current tenants in place with a new lease at our modified terms instead of having an empty apartment represent a cost savings. Even a two week vacant period would result in a 35% loss of revenue as compared to keeping your current tenants at the same rental rate for the proposed 12 month lease. When the extra costs associated with prepping our current unit for new tenants are added onto this, the option seems less than ideal than our modified terms.
By meeting our household at an equitable compromise, this arrangement would benefit both parties. (Property Management Company) and my household can mutually meet our respective individual and corporate needs.
Immediately, the proposed terms enable our unit to continue generating income for your company for an additional 12 months. Your company maintains it's revenue stream, but eliminates cleaning fees, advertising fees, carpeting and painting fees, and income loss. This is very positive and you are also maintaining a quality tenant who pays consistently on time and keeps the unit in very clean and quality condition.
Please call me upon receipt of this letter so that we can complete the necessary documentation. I look forward to a mutually beneficial outcome.
This letter could have been better I'm sure, but the end result was a much smaller increase than originally proposed.