Negotiating for lower rent can be tricky. You want to enjoy the best deal possible and don’t want to seem aggressive or pushy.
And if you’re a new renter, you might not know all the ins and outs of rent negotiation to help you remain a reliable tenant. And if you’re attempting frugal living in Australia, reducing your rent can prove extremely helpful.
Whether you want to save some money on rent or just need more space in your current home, here are some expert tips on how to negotiate rent with your landlord. And the best time to do this is when you’re asking your landlord to renew the lease.
Tips to help you negotiate rent reduction in any city
Here are top tips from real estate experts:
1. Do your research
Residential rental prices are always changing depending on the current market conditions. Besides, landlords understand that they’ve got the upper hand in the negotiation.
So, before you even start negotiating, research the market value for comparable units in the area and what lease terms those properties offer. This will give you ammunition with your landlord about a rent increase if needed.
2. Make a strong case for less rent
You need a good case for yourself when negotiating with your landlord. The price of rent should also be on your list of questions to ask the real estate agent when renting a new property.
You should have proof of your current income and any other data the landlord may ask for. If you’re moving from out of town, you can have references from other tenants who live in the place you live or previous landlords.
So, they can attest to the kind of person you are. If someone may use something against you, ensure you explain it in advance. So, the landlord will understand what they get into before they agree to anything.
3. Consider offering a longer lease
If you desire more stability in your living situation or want a good deal or extra protection from being evicted, consider offering a longer lease term than what the landlord is asking for the unit. It could mean paying slightly more over time, but at least it guarantees the rent will not change unexpectedly later in this competitive market.
Asking for a longer lease term can be an effective way to negotiate the rent down. It gives landlords more assurance that they don’t need to find another tenant for the fixed-term lease.
4. Have a specific budget in mind
Renting in Australia isn’t always cheap. You should know the amount you have available and be ready to spend it on your rent each month before you begin looking at different apartments/houses. That way, when talking with the landlord about a reasonable price, you can say, “I need $XXX per month to cover my rent, and other expenses and leave room in my budget for emergencies.”
It’ll put them on notice that they should be sensible about what they want from a new tenant. Also, don’t forget to look for tips on how to save money on rent to help you pay on time.
5. Avoid asking too much
If you want to get cheap rent, avoid asking for too much. You want a landlord to see how serious you are. If you ask for a price that is too low, it can make the landlord think that you only need cheap apartments and the ones that are worth their rental price.
Ideally, you can ask for a small discount of about 10% less than what the landlord initially offers. If lucky, they may come down a bit more than your amount.
6. Get it in writing
When dealing with an individual owner or landlord, get everything in writing. Consider including agreements about repairs and maintenance, rent increases, security deposits and other matters relating to living conditions at the property.
This way, you will avoid misunderstandings later about what you agreed upon when signing the lease agreement.
7. Be respectful and professional
Generally, asking for reduced rent is not just about getting a fair deal. It’s also about maintaining good relationships and being respectful of a property management company or landlord.
Your body language and tone will play a crucial role in the success of the negotiations. If rude or aggressive towards the landlord, they may take offence at this and refuse to give a better deal.
Conversely, if they notice you are a good tenant and polite/ considerate of their time, they may be more willing to work with your budget needs. Always remember that the landlord in this situation is the one to decide whether you live on their property.
8. Consider hiring an agent
If you are new to the rental market or want help with the process, consider hiring an agent. Agents have skills and can advise on what to look for when viewing various apartments, and which neighbourhoods are best for different lifestyles and incomes.
They’ll also tell you the amount you should expect to pay for different types of apartments based on location and amenities. They can also help negotiate with landlords on your behalf and get the best from your tenancy.
Is negotiating rent normal?
Negotiating rent is perfectly acceptable and appropriate. However, you should negotiate with the landlord if you have a legitimate reason. For example, if a landlord asks you for a higher security deposit than it should be.
Or if they want you to pay for utilities in addition to rent or if you don’t want to pay the full price. Still, if the landlord cannot fix the main problems affecting your health and safety feel free to opt for it. Or you can move to the next apartment.
Conclusion
Hopefully, you got some great tips and ideas to how to negotiate rent.
Even if they never save more dollars than you may desire, they should at least give you more comfort and assurance, kindly of like paying rent with your credit card.
This way, you can sit down and hammer out an agreement. Remember, the best way to have more money in your bank account after settling rent for your new lease is to live in a nice place you can afford.
