The short answer
Base your counter on what comparable units nearby rent for, not on a percentage you heard somewhere. Find the typical rent for truly similar units, adjust for real differences in your unit, then open a little below the rent you would be happy to settle at. Stay inside the range the evidence supports so your number is credible.
Why percentages are the wrong starting point
You will see advice like “counter at half the increase” or “offer 3%”. Those rules ignore the one thing your landlord cares about: what the unit would rent for if you left. If similar apartments list for less than your current rent, even a small increase is above the market. If they list for much more, a large percentage increase may still leave you below it. Start from the market.
Three numbers to decide before you write
- Opening counter: the number you send. Slightly below your target, but still supported by your comparables.
- Target: the rent you would be genuinely pleased to agree to.
- Walk-away point: the rent above which moving would make more sense, once you include the cost of moving.
Only the first number goes in your message. The other two guide how you respond.
A worked example
Suppose you pay $1,800 for a one-bedroom and the landlord proposes $1,980. You find six listings for one-bedrooms of similar size within a short walk. After dropping one that is much larger and one in a newly built luxury building, the remaining four are listed at $1,875, $1,890, $1,925 and $1,950. Their middle value is about $1,900.
Your unit has an older kitchen than most of them, so you would not expect to pay more than the typical comparable. A sensible plan:
- Opening counter: $1,875, matching the lowest strong comparable.
- Target: $1,900 to $1,925.
- Walk-away: around $1,980, since moving costs would eat most of any saving elsewhere.
Adjusting for your unit
Comparables are rarely identical. Adjust your view, not the listing prices, for differences a landlord would recognize:
- size, layout and bedroom count;
- renovated versus original kitchen and bathroom;
- in-unit laundry, parking, outdoor space;
- building amenities and management quality;
- floor, light, noise and views.
Be honest here. If your unit is nicer than the comparables, a counter at their level will not be credible, and you are better off asking for a smaller increase or other terms.
How far below the proposed rent can you go?
There is no fixed limit, but a counter well below every comparable listing reads as unserious and tends to end the conversation. The strongest counters sit at or near the lower part of the comparable range and come with the listings attached. If you have no comparables below the proposed rent, the evidence does not support a lower counter, and a request for a longer term at the current rent or for fee waivers is more realistic.
If you currently pay below market
Long-term tenants sometimes find their rent has fallen well behind the market. A large increase may then be a catch-up rather than an overreach. You can still negotiate, usually for a phased increase or a smaller step this year, by pointing to your reliability and the landlord's cost of turning the unit over.
Once you have your number, see how to present your counter.
How CounterRent helps
This is the part CounterRent is built for. It ranks comparable rentals near your address, removes the ones that would not hold up, calculates an opening counter and a target settlement range from what remains, and tells you when the evidence is too thin to support a counter at all.