The cost of living is rising, as it does year on year. With potential annual rental increases, alongside other annual increases, it may feel like your quality of living is also diminishing. This may put you in a position to consider moving to a more affordable property. However, if your rent truly is becoming a burden, and you really love the property that your are renting, you may be able to negotiate for a lower rent.
Before you approach your landlord, however, it is important to do some research and analysis. By following a progressive number of steps, you’ll be well-armed with insights into the market and your personal financial wellbeing, that may give you the ammunition you need to encourage a rent reduction.
Examine the local rental market
Research the rental properties in the area, comparing the rental you pay to similar properties. Ideally you’ll be looking to compare apples-with-apples at this point. However, you may find properties that are equal in rent but offer an additional bedroom, or amenity/service.
It is also useful to note any new construction or developments in the area that may impact on the desirability of the location. If, for example, a new hospital is being built, it may mean increased noise, traffic and parking problems. A new office block, however, can swing in the landlords favour, as there will be increased rental potential.
Relook your rental agreement
Here you will be need to examine the terms and conditions of your lease. If you don’t already know what those are, look at how often the rent may be increased (annually for example), term of the lease and when it due for renewal. Also note how much notice is required if deciding to move.
One of the ways that may help to sway the landlord, is to renegotiate the lease agreement in the landlord’s best interest. For example, you may suggest that for a lower rent, you will agree to rent the property for a longer period, or prepared to consider a rent-to-buy, even taking on some of maintenance activities that you can be trusted to carry out.
It is also best to renegotiate at least two months ahead of the renewal date.
Consider your landlord-tenant relationship
If you believe you have been a good tenant, i.e. paid rent on time, followed all terms and conditions of the rental agreement, taken care of the property, and had a trouble-less tenancy, you are in a position to prove your value as a tenant.
It often happens that a landlord and tenant have a friendly relationship, which may or may not be a point-scorer. Friendliness does not necessarily make a landlord sympathetic when it comes to a business negotiation. In the same way you are negotiating in your best interests, so too will the landlord.
Build your case
While a conversation is the ideal, it does help to also put in writing, your intention. And, in some cases, this may be the only way to communicate if your landlord is easily accessible or approachable. You’ll need to structure your case professionally if doing so in writing. This means producing documentation in support of your presentation, and providing statistics where necessary.
Simultaneously, this negotiation can also be used as an opportunity to tactfully remind the landlord of any concerns you may have relative to the property’s condition, and where there are issues, these may be used as negotiation angles. This has the effect of proving to the landlord that you care about the property.
The negotiation
Be prepared to compromise, be reasonable and understanding. Landlords may also be struggling under the weight of the increasing cost-of-living and in some cases, the property may be their only form of income. The negotiation doesn’t have to be stressful for either party; temper the emotions! Keeping the conversation professional and purely based on facts and figures will help.
Also bear in mind that whilst you have a figure in mind, the landlord might suggest a higher figure, but lower than you currently pay. Meeting somewhere in the middle is good policy, and a tactful sense of humour can often go a long way to easing what could be a stressful conversation.
If not prepared to lower the rent, the landlord will be alert to putting your tenancy at risk. You must then be prepared to move. This doesn’t mean you should immediately submit your notice if you still have time within the tenancy timeframe. If one month’s notice is required and your negotiations are two months ahead, you will have time to find alternative accommodation and submit your notice as per the lease agreement.
