Never Split the Difference: Negotiating as if Your Life Depended on It

NEGOTIATING A RENT CUT AFTER RECEIVING
NOTICE OF AN INCREASE
Eight months after a Georgetown MBA student of mine
named Mishary signed a rental contract for $1,850/month,
he got some unwelcome news: his landlord informed him
that if he wanted to re-up, it would be $2,100/month for ten
months, or $2,000/month for a year.
Mishary loved the place and didn’t think he’d find a
better one, but the price was already high and he couldn’t
afford more.
Taking to heart our class slogan, “You fall to your
highest level of preparation,” he dove into the real estate
listings and found that prices for comparable apartments
were $1,800–$1,950/month, but none of them were in as
good a building. He then examined his own finances and
figured the rent he wanted to pay was $1,830.
He requested a sit-down with his rental agent.
This was going to be tough.
At their meeting, Mishary laid out his situation. His
experience in the building had been really positive, he said.
And, he pointed out, he always paid on time. It would be
sad for him to leave, he said, and sad for the landlord to lose
a good tenant. The agent nodded.
“Totally in agreement,” he said. “That’s why I think it
will benefit both of us to agree on renewing the lease.”
Here Mishary pulled out his research: buildings around

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the neighborhood were offering “much” lower prices, he
said. “Even though your building is better in terms of
location and services, how am I supposed to pay $200
extra?”
The negotiation was on.
The agent went silent for a few moments and then said,
“You make a good point, but this is still a good price. And
as you noted, we can charge a premium.”
Mishary then dropped an extreme anchor.
“I fully understand, you do have a better location and
amenities. But I’m sorry, I just can’t,” he said. “Would