Getting a better deal on rent is the Holy Grail for tenants and according to an industry expert, achieving it isn’t as difficult as it seems.
LJ Hooker’s head of property investment management Amy Sanderson explains how tenants can negotiate their rent after signing a lease.
Sanderson says building a good relationship with the landlord, through their property manager, is the vital first step. “To do that, pay your rent on time, every time and look after the property,” she says.
Being a “model tenant” will go a long way towards getting a rent cut, because that’s what all landlords are looking for, Sanderson adds.
“Many investors would prefer a happy long-term tenant, who is reliable in paying their rent and maintaining the property, so they will happily keep a tenant in place, below the market value, in recognition of this,” she says.
There are numerous ways to earn “good tenant points”, Sanderson explains.
“Allow access to the property when requested, for things like routine property inspections and repairs. Report items that break, as they break, noting that if you broke it, you will probably be asked to pay for the repair,” she says.
“Also, when you move in, take note of the condition of the property. If there are items you would like addressed, bring them up then. This way, everyone knows exactly what each party is prepared to do.
“Taking a lease and then asking for many items that might not be required to be attended to by legislation, often starts the relationship on a sour note for everyone involved,” Sanderson says.
Once some goodwill is built up, simply ask the question about reduced rent or even request a longer lease, offering security of tenure at a reduced rate.
“Let’s face it, leasing a property can be expensive for the landlord. There are marketing costs, re-letting costs, the risk of vacancy and damage to the property during a move.
“A good long-term tenant at a slightly reduced rate is very attractive,” Sanderson says.
On the flip side, it’s also possible to contest a proposed rent increase, Sanderson says.
“If you receive a rent increase and feel it is too high, you will need to provide examples of recently rented properties that compare to yours to demonstrate that the increase is unjustified,” she says.
“If you end up at a tribunal disputing an increase, you will need to do this, so why not discuss it first?”
