Calling IAC Renters - help me renegotiate

[quote author="PeterUK" date=1225112033]So, if you'd signed the lease on Her original terms you would have just got "No increase"..plus you would have missed out on their new incentives...



This re-confirms that IAC are, to put it politely, not very nice :mad:</blockquote>


That's correct. Per the original renewal letter, they offered us no change in rate (and no goodies either.)
 
It sounds like you took the right steps to finding the best deal.



Managers are held accountable for their occupancy and availability numbers by upper management . They are further held accountable for making sure they keep their property as close to "market rent" as possible. So it's a big balancing act between asking the price they are supposed to, and keeping their building full. Dealing directy with the community manager is best because they call the shots.



Keep everything in perspective. Sad to say, the reality is you don't have them over a barrel - they have you. After all, if they don't negotiate, you are the one hiring the moving company, boxing all your worldly belongings, reasearching new homes, forfeiting a portion of your security deposit for cleaning, and losing at least a weekend of your life. To them, if you leave, you are a number - something they need to try hard to make up for the following week. That's why the "guns-blazing" approach will almost never work.



That said, here's one of the easiest ways to get what you want.



Call your property directly and act like a new move in. The way I would put it is, "I'm interested in a [whatever your apartment type is] for move in WITHIN TWO WEEKS." That last part is crucial because mentioning that time frame will have them quote you vacant apartment special pricing. Anything more than two weeks and they will likely quote you something currently occupied (where the tenant has given a 30 day notice to leave) and the special will not be nearly as appealing. Also, make it clear that price is going to determine whether or not you will visit their property. "I have a list of places I need to call and I only have time to visit a few this weekend. Can I get your pricing and if it's on the better end, I'll call you back to schedule an appointment?" Once quoted the discount rent, ask what the price is normally. Further ask them if they are offering anything off move-in? In MOST cases they will say, "We can offer you $200 off move in if you sign up for our auto debit program and another $100 off move in if you place your hold on your first visit." Those are nothing special, they ALL offer them.



So that will determine what brand new move ins are being offered. Do NOT assume that this is what they feel their renewals are entitled to. Landing a new move in is a NET 1 for the property. Landing a renewal is a NET 0. Sure there is the possibility that you may not renew, but managers/IAC know that moving...is a pain. They also understand that there is a reason why you chose to live here in the first place (see above where SoCal relates that the manager reminded him of how close it is to the kids' school, etc). She went back to the whole, "building value" part of sales and more importantly she was subtly letting SoCal know, "You already like this place...you're not likely to up and move for some unknown over $30/month."



It wouldn't surprise me at all to find some communties out there completely unwilling to negotiate proposed renewal rates, even in this market. To a certain degree there's a slippery slope fear. Neighbors talk to neighbors. If they renew you for a multi-hundred dollar decrease, they KNOW you are going to be so proud of yourself that you will tell everyone you know. Tie that in with a fair housing liability fear..."You gave my neighbor John a huge decrease because he has brown hair and you won't give me the same deal because I have blonde hair...you're a "hair-ist" and I'm suing!" Now their budget is blown because the entire community is in revolt over renewal rates. Therefore, as irrational as it seems, they may see reason to take a hard line and allow you to leave, only to fill your apartment with a new someone paying less.



In the end, your goal should be to get the same deal a new move in would get. But don't let that be the only thing you're willing to settle for unless you are truly willing to walk away. Taking a signed 30 day intent to vacate notice to the office is the rental equivalent of "going all in." It's the last weapon in your arsenal to find out what their true bottom line is and you should only use it if you've done some research on your other options. The best method would probably be to bring it in, ask for a manager, and hand it to him/her saying, "I just want to thank you in person. My family has really enjoyed the time we're spent here." When they ask why you're leaving, "Well we're trying to save to buy a house and we've found [insert the details of the best deal you found], which will save us some money." In most cases they will sit you down and give you their best offers. If they accept your 30 day notice, you should be able to rescind it a few days later.



Finally, when it comes to renewal terms, I recommend taking the longest term possible. Lock in that low rate you just worked hard to negotiate for if you plan on living there a while. Shorter lease terms benefit management by allowing them to raise your rent sooner. You're more likely to get your discounted rent for a 6 month lease than a 16 month lease (try it, just for laughs). Also, imagine sitting down at the table with that same manager just 5 or 6 months down the road telling them again that you want a decrease. Before you know it, this will become a pride issue. "Now we were able to get you that great rate last time along with the short term you wanted. Unfortunately this time around we can't negotaite. You will need to renew at the proposed rate."
 
Here is a little trick I found. You can see the Vacancy Rate at any IAC Complex.

Go to <a href="http://www.rental-living.com/">http://www.rental-living.com/</a>

Then pick the community you want to check.

Then pick a floorplan and check availability. Click it.

Look for the bottom button that says check <strong>all</strong> floorplans for availability.

There it is. Every unit thats available for that IAC complex on one list.
 
[quote author="Cuatro" date=1225158407]It sounds like you took the right steps to finding the best deal.



Managers are held accountable for their occupancy and availability numbers by upper management . They are further held accountable for making sure they keep their property as close to "market rent" as possible. So it's a big balancing act between asking the price they are supposed to, and keeping their building full. Dealing directy with the community manager is best because they call the shots.



Keep everything in perspective. Sad to say, the reality is you don't have them over a barrel - they have you. After all, if they don't negotiate, you are the one hiring the moving company, boxing all your worldly belongings, reasearching new homes, forfeiting a portion of your security deposit for cleaning, and losing at least a weekend of your life. To them, if you leave, you are a number - something they need to try hard to make up for the following week. That's why the "guns-blazing" approach will almost never work.



That said, here's one of the easiest ways to get what you want.



Call your property directly and act like a new move in. The way I would put it is, "I'm interested in a [whatever your apartment type is] for move in WITHIN TWO WEEKS." That last part is crucial because mentioning that time frame will have them quote you vacant apartment special pricing. Anything more than two weeks and they will likely quote you something currently occupied (where the tenant has given a 30 day notice to leave) and the special will not be nearly as appealing. Also, make it clear that price is going to determine whether or not you will visit their property. "I have a list of places I need to call and I only have time to visit a few this weekend. Can I get your pricing and if it's on the better end, I'll call you back to schedule an appointment?" Once quoted the discount rent, ask what the price is normally. Further ask them if they are offering anything off move-in? In MOST cases they will say, "We can offer you $200 off move in if you sign up for our auto debit program and another $100 off move in if you place your hold on your first visit." Those are nothing special, they ALL offer them.



So that will determine what brand new move ins are being offered. Do NOT assume that this is what they feel their renewals are entitled to. Landing a new move in is a NET 1 for the property. Landing a renewal is a NET 0. Sure there is the possibility that you may not renew, but managers/IAC know that moving...is a pain. They also understand that there is a reason why you chose to live here in the first place (see above where SoCal relates that the manager reminded him of how close it is to the kids' school, etc). She went back to the whole, "building value" part of sales and more importantly she was subtly letting SoCal know, "You already like this place...you're not likely to up and move for some unknown over $30/month."



It wouldn't surprise me at all to find some communties out there completely unwilling to negotiate proposed renewal rates, even in this market. To a certain degree there's a slippery slope fear. Neighbors talk to neighbors. If they renew you for a multi-hundred dollar decrease, they KNOW you are going to be so proud of yourself that you will tell everyone you know. Tie that in with a fair housing liability fear..."You gave my neighbor John a huge decrease because he has brown hair and you won't give me the same deal because I have blonde hair...you're a "hair-ist" and I'm suing!" Now their budget is blown because the entire community is in revolt over renewal rates. Therefore, as irrational as it seems, they may see reason to take a hard line and allow you to leave, only to fill your apartment with a new someone paying less.



In the end, your goal should be to get the same deal a new move in would get. But don't let that be the only thing you're willing to settle for unless you are truly willing to walk away. Taking a signed 30 day intent to vacate notice to the office is the rental equivalent of "going all in." It's the last weapon in your arsenal to find out what their true bottom line is and you should only use it if you've done some research on your other options. The best method would probably be to bring it in, ask for a manager, and hand it to him/her saying, "I just want to thank you in person. My family has really enjoyed the time we're spent here." When they ask why you're leaving, "Well we're trying to save to buy a house and we've found [insert the details of the best deal you found], which will save us some money." In most cases they will sit you down and give you their best offers. If they accept your 30 day notice, you should be able to rescind it a few days later.



Finally, when it comes to renewal terms, I recommend taking the longest term possible. Lock in that low rate you just worked hard to negotiate for if you plan on living there a while. Shorter lease terms benefit management by allowing them to raise your rent sooner. You're more likely to get your discounted rent for a 6 month lease than a 16 month lease (try it, just for laughs). Also, imagine sitting down at the table with that same manager just 5 or 6 months down the road telling them again that you want a decrease. Before you know it, this will become a pride issue. "Now we were able to get you that great rate last time along with the short term you wanted. Unfortunately this time around we can't negotaite. You will need to renew at the proposed rate."</blockquote>
Great advice. It all comes down to how willing you are to up and move to a new place to save money. That being said, moving is a pain in the booty even for someone like me who doesn't have a lot of stuff and is single. For me, if I'm not saving more than $100/month then it's not even worth the hassle of packing up and moving. If you like the community, be willing to meet halfway (I was considering on moving and after taking a drive-by a few other complexs I didn't like what I saw) with the manager.
 
[quote author="bltserv" date=1225164397]Here is a little trick I found. You can see the Vacancy Rate at any IAC Complex.

Go to <a href="http://www.rental-living.com/">http://www.rental-living.com/</a>

Then pick the community you want to check.

Then pick a floorplan and check availability. Click it.

Look for the bottom button that says check <strong>all</strong> floorplans for availability.

There it is. Every unit thats available for that IAC complex on one list.</blockquote>


Great trick, Bltsrv.



Remember those prices on the rental-living site are what IAC considers "market prices." Call the communities to find out what the discounts (read "real prices") are.
 
[quote author="SoCal78" date=1225084148]Update:



Just got back from meeting with the leasing office manager...



As it stands now the best offer, again, is $100/mo rent decrease on a 12-mo term and a $250 credit for renewing. I will update when I hear from her in a couple days.</blockquote>


This seems like quite a good deal. I will be surprised but certainly glad for your if the "new deal" is better.



SCHB
 
[quote author="Cuatro" date=1225262140]I almost forgot. Let the know your carpets need a clean and they will throw it in for free.</blockquote>


HA! I did that very thing on my renewal last year. And believe me, it needed it. That cheap carpet IAC uses looks good for about a week after you move in, then looks like s*&t. I had to go buy my own carpet cleaner once we moved into IAC.



I wonder why IAC even uses carpet, and doesn't just lay that cheap fake wood laminate everywhere? The cost difference can't be much, both the carpet and laminate in our place are equally low grade crap. I'm sure most people would prefer the laminate.
 
[quote author="CK" date=1225262861][quote author="Cuatro" date=1225262140]I almost forgot. Let the know your carpets need a clean and they will throw it in for free.</blockquote>


HA! I did that very thing on my renewal last year. And believe me, it needed it. That cheap carpet IAC uses looks good for about a week after you move in, then looks like s*&t. I had to go buy my own carpet cleaner once we moved into IAC.



I wonder why IAC even uses carpet, and doesn't just lay that cheap fake wood laminate everywhere? The cost difference can't be much, both the carpet and laminate in our place are equally low grade crap. I'm sure most people would prefer the laminate.</blockquote>


The laminate we have has absolutely no padding beneath it. The floor is as hard as a rock. The carpet is so cheap too. Oh, and the entire complex has a major ant problem.



No word yet from the manager about the renewal-special.
 
[quote author="CK" date=1225262861][quote author="Cuatro" date=1225262140]I almost forgot. Let the know your carpets need a clean and they will throw it in for free.</blockquote>


HA! I did that very thing on my renewal last year. And believe me, it needed it. That cheap carpet IAC uses looks good for about a week after you move in, then looks like s*&t. I had to go buy my own carpet cleaner once we moved into IAC.



I wonder why IAC even uses carpet, and doesn't just lay that cheap fake wood laminate everywhere? The cost difference can't be much, both the carpet and laminate in our place are equally low grade crap. I'm sure most people would prefer the laminate.</blockquote>




clearly, you've never lived in an apartment below one that has wood floors. It can be incredibly loud when anyone walks in anything other than stocking feet, and even then...and don't get me started on kids playing.



Most buildings in NYC have a minimum carpet coverage ratio (usually 60-70%) since most all have wood floors.
 
[quote author="bltserv" date=1225164397]Here is a little trick I found. You can see the Vacancy Rate at any IAC Complex.

Go to <a href="http://www.rental-living.com/">http://www.rental-living.com/</a>

Then pick the community you want to check.

Then pick a floorplan and check availability. Click it.

Look for the bottom button that says check <strong>all</strong> floorplans for availability.

There it is. Every unit thats available for that IAC complex on one list.</blockquote>


That is the coolist trick!! My complex has like 30% vacant. WOW
 
I just found our unit on the site going for $1995, we're paying $2270 - For a double story 2 bd, 2 1/2 br-



So we're paying $275 more than the advertised price on rental living...
 
[quote author="PeterUK" date=1225287775]I just found our unit on the site going for $1995, we're paying $2270 - For a double story 2 bd, 2 1/2 br-



So we're paying $275 more than the advertised price on rental living...</blockquote>


Hope your lease is almost up.
 
[quote author="JLegend" date=1225288298][quote author="PeterUK" date=1225287775]I just found our unit on the site going for $1995, we're paying $2270 - For a double story 2 bd, 2 1/2 br-



So we're paying $275 more than the advertised price on rental living...</blockquote>


Hope your lease is almost up.</blockquote>


Yes, mid January...so I will keep you all updated on what transpires...
 
I just negotiated $350 off my monthly rent (private rental), so anything is possible. Peter, I'm sure you can get that reduced by $275.



Cuatro, what do you think? And thanks for your valuable insight !
 
[quote author="wendyinoc" date=1225285729][quote author="bltserv" date=1225164397]Here is a little trick I found. You can see the Vacancy Rate at any IAC Complex.

Go to <a href="http://www.rental-living.com/">http://www.rental-living.com/</a>

Then pick the community you want to check.

Then pick a floorplan and check availability. Click it.

Look for the bottom button that says check <strong>all</strong> floorplans for availability.

There it is. Every unit thats available for that IAC complex on one list.</blockquote>


That is the coolist trick!! My complex has like 30% vacant. WOW</blockquote>
Also, that website will not show you all of the vacant units just a portion of them.
 
My pleasure, Trooper.



Let's look at this from two perspectives:



BIG PICTURE:

A $275 decrease at an IAC seems unheard of. IAC as a whole controls apx 30,000 units in OC. With such a huge exposure one would imagine their biggest concern is liability. Specifically fair housing liability. Think of this as, "If we allow this for one resident but not another, that could be viewed as discrimination. Therefore when we implement a policy we should be willing to apply it to every resident under a similar circumstance."



In this case, chances are PeterUK is not the only person in his complex paying $2270 or more for his unit. Is IAC willing to grant all those people a 12%+ decrease? Not likely. My guess is they may offer something to the people observant enough to realize the current discounted price and who ask for a decrease. But I think the full $275 discount hurts them too much financially and also opens them up to liability if they don't apply it across the board. In this case, expect a modest decrease and their sincere willingness to let you walk away if you decide it's not enough.



LITTLE PICTURE:

A community manager may be staring at low weekly sales numbers, absolutely dreading the idea of another person giving their notice. This could be the case at smaller properties where 1 person vacating can really move the needle. A manager may make the decision to give you darn near whatever you want, paying little attention to the big picture. But they do run the risk of getting reprimanded if upper management pays close enough attention.







In the end, it never hurts to ask. Just make it clear to the manager that you've done your homework. If they perceive you as uninformed, they will try to snow you over with, "Well the price of business is going up," or "with so many people losing their homes this place is bursting at the seems with all our new renters." Show them that you KNOW they are offering deep discounts. Try to get them to explain why you, a loyal resident with perfect payment history, are expected to pay more than a brand new move in without a proven history of good tenancy. If I were in their shoes I would be embarassed and do a little squirming myself. They may not even know why...but they have their marching orders.
 
Cuatro, thank you for taking the time to explain all this to us, I really appreciate it...



This will be my second lease renewal and we have been good Tennants, at least we have that going for us..



Troop, congratulations on your decrease !!
 
[quote author="usctrojanman29" date=1225310355][quote author="wendyinoc" date=1225285729][quote author="bltserv" date=1225164397]Here is a little trick I found. You can see the Vacancy Rate at any IAC Complex.

Go to <a href="http://www.rental-living.com/">http://www.rental-living.com/</a>

Then pick the community you want to check.

Then pick a floorplan and check availability. Click it.

Look for the bottom button that says check <strong>all</strong> floorplans for availability.

There it is. Every unit thats available for that IAC complex on one list.</blockquote>


That is the coolist trick!! My complex has like 30% vacant. WOW</blockquote>
Also, that website will not show you all of the vacant units just a portion of them.</blockquote>


I think you are correct USC. I know of a couple of units in my complex not on the Rental-Living list as well.

Not sure if they keep them off on purpose or a lag in updating the site. One thing I have really noticed is people just staying less than 6 months. Not sure if they are getting in on a month to month. Or if the are skipping out. But I am really seeing my complex become more

like an extended stay Marriott this year.



Hey USC. Looks like your clubhouse is our polling place on Tuesday.
 
My pleasure PeterUK.



Bltsrv, Yes, except for the smallest properties, the r-l website only includes a handful of what's available by plan. They don't want to publicly give away too much info.
 
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