4 January 2020

How to Negotiate a Lower Rent and Save Big

Adrian Atelj
Share

If you’re one of the numerous tenants who believe rent in Australian capital cities only goes up, you’re not alone. But the numbers indicate that this long-held notion is actually inaccurate.

In Sydney the average rent for detached houses has decreased by over $50 per week since its peak in 2017. Additionally, apartments in central Melbourne and Brisbane have seen a small drop in average rent since that boom. In certain situations, tenants may also be entitled to a rent decrease, but most never ask – and as the old saying goes, if you don’t ask you won’t receive.

Here are some of our quick tips for negotiating a rental decrease with your landlord so you can save thousands of dollars and give yourself the option of transition from renting to owning.

Do your Homework

Most Aussie landlords are reasonable people, but very few of them will give you a rent decrease just because you want one. That’s why you’ve got to back your request up with convincing facts and hard numbers.

Have a look at similar properties near you on Homes.com.au and take note of the rent they’re charging. If most of them have lower rent that yours, gather a few of the listings and present them with your request as evidence that there is a precedent for lower rental outlays in your area. It may also be worth taking a look at market data and try to identify evidence that the average rent for similar properties in your area has decreased or is comparatively lower than what you are currently paying.

You should also find out about demand for rentals in the area by researching online or talking to a leasing agent. The longer it’s taking to rent out similar properties in the area, the better your chances are of successfully negotiating a rent decrease.

Know When to Play Your Cards

Even if rental amounts in your area are going up you may be legally entitled to a rent reduction in certain circumstances. Laws differ from state to state, but generally these circumstances may include:

  • If your landlord has breached the tenancy agreement.
  • When the property is severely damaged, destroyed or uninhabitable (usually as a result of weather or associated events).
  • If the property has to be sold and purchasers are interrupting your quiet enjoyment of your home.
  • If the property is illegal (e.g. If the area has been rezoned for commercial use only).

If any of these apply to you, it represents a good opportunity to make a request for a rent reduction in writing to your landlord and have photographic evidence if possible.

Understand Your Landlord

From a landlord’s perspective their property is an investment and its purpose is to make money. If you understand that and present your case in a way that makes financial sense for the landlord, you’re far more likely to get a rent reduction.

For example, let’s say you ask for a rent reduction of $15 a week – over the entire year that’s just under $800. If you were to leave and the landlord had to replace you, the lost income from the vacancy and the cost of marketing the property could be far more than that amount.

Be An Excellent Tenant and Keep Your Options Open

If you’ve got a solid track record as a tenant, a long list of references and a stable income your landlord will want to keep you.

This gives you more power in negotiations and it means that it should be relatively easy for you to find another place if your landlord denies your request for a rental decrease. As with most things in life, having options when it comes to properties is always a good thing.

Be Polite and Realistic

When you request a rent decrease always be polite and pleasant. Don’t bring up a laundry list of complaints and have a whinge – explain how giving you a rental decrease makes sense both for your landlord and for you as the tenant.

It’s also important to be realistic. If rents are skyrocketing in your area and there are dozens of people at nearby viewings, it’s unlikely you’ll get a rent reduction. With that said, it’s always worth a try and if you’re polite when you broach the topic there’ll be no harm done.

Other Articles

  • 10 October 2019 - Adrian Atelj
    4 things first home buyers need to know
  • 9 October 2019 - Adrian Atelj
    4 tips for planning success when selling
  • 18 December 2019 - Vic Lorusso
    4 Tips to Consider When Selecting a Builder
  • 19 April 2022 - Danielle Redford
    Key questions to ask before buying a home
  • 15 December 2019 - Adrian Atelj
    8 Must Haves When Choosing A Rental Property
  • 19 April 2022 - Danielle Redford
    How to make a winning rental application
  • 16 October 2019 - Adrian Atelj
    8 tips for negotiating with selling agents
  • 7 October 2019 - Adrian Atelj
    A guide to buying at auction
  • 5 October 2019 - Vic Lorusso
    Adding a pool: will it add value?
  • 4 October 2019 - Adrian Atelj
    Are property managers worth the cost?
  • 24 November 2019 - Adrian Atelj
    Beginner’s Guide to Starting a Veggie Garden
  • 25 March 2022 - Danielle Redford
    Breaking a Lease with your Landlord Early
  • 18 April 2022 - Emma McLaren
    Understanding your home’s useable equity
  • 9 May 2022 - Danielle Redford
    How to flip property in Australia
  • 15 October 2019 - Adrian Atelj
    Gaining the mindset of a successful investor
  • 5 April 2022 - Danielle Redford
    Homeownership in 2022: Costs of Buying a House
  • 9 October 2019 - Vic Lorusso
    Hot interior styling trends for 2020
  • 12 March 2022 - Danielle Redford
    Your guide to different house types
  • 12 March 2022 - Danielle Redford
    Conveyancing: a cheat-sheet guide
  • 19 April 2022 - Emma McLaren
    How long does it take to build a new home?
  • 12 March 2022 - Danielle Redford
    How much deposit do you need to buy a home?
  • 9 May 2022 - Emma McLaren
    How much does a new kitchen cost?
  • 12 March 2022 - Danielle Redford
    What's the average cost to build a home in 2022?
  • 9 May 2022 - Danielle Redford
    The value of building an extra bedroom
  • 5 April 2022 - Danielle Redford
    How to make the most of negative gearing
  • 19 April 2022 - Emma McLaren
    How to buy property through private sale
  • 2 October 2019 - Adrian Atelj
    How to choose an investment property
  • 9 May 2022 - Danielle Redford
    How to determine the value of a home
  • 6 October 2019 - Adrian Atelj
    How to get your property ready for sale
  • 2 October 2019 - Adrian Atelj
    How to increase your return on investment
  • 5 April 2022 - Emma McLaren
    Stress-free interstate migration
  • 4 January 2020 - Adrian Atelj
    How to Negotiate a Lower Rent and Save Big
  • 24 December 2019 - Vic Lorusso
    How To Use Plants for Shade and Privacy
  • 28 November 2019 - Vic Lorusso
    Is a Low Deposit Loan Right for You?
  • 12 March 2022 - Danielle Redford
    Is It Worth Hiring a Buyer's Agent?
  • 7 October 2019 - Adrian Atelj
    How to style your home and wow your buyers!
  • 12 March 2022 - Danielle Redford
    Making an offer on a house in 2022
  • 16 October 2019 - Vic Lorusso
    Making the transition from rent to mortgage
  • 9 October 2019 - Adrian Atelj
    Market falling? Here’s what to do
  • 4 November 2019 - Vic Lorusso
    Mortgage Cashback: What’s the Catch?
  • 19 April 2022 - Emma McLaren
    How to negotiate a home purchase price
  • 15 October 2019 - Vic Lorusso
    Nine top tips for buying off the plan
  • 1 November 2019 - Adrian Atelj
    November Monthly Market Overview
  • 18 April 2022 - Emma McLaren
    Your Complete Pre-Settlement Checklist
  • 19 April 2022 - Danielle Redford
    How to prepare your home for the rental market
  • 24 December 2019 - Adrian Atelj
    Propagating Indoor House Plants with Water
  • 12 March 2022 - Danielle Redford
    Rent-to-own your own home schemes
  • 9 May 2022 - Danielle Redford
    Checklist for a rental inspection
  • 10 November 2019 - Adrian Atelj
    Storage Hacks for Babies and Toddlers
  • 25 March 2022 - Emma McLaren
    Using Super to Buy a Property
  • 19 April 2022 - Danielle Redford
    Essential tools for DIY home renovations
  • 16 October 2019 - Adrian Atelj
    The attraction of apartment living
  • 5 October 2019 - Pat Carbone
    The home buyer’s guide to stamp duty
  • 9 May 2022 - Danielle Redford
    How to carry out an end of lease cleaning
  • 14 October 2019 - Adrian Atelj
    Tips for keeping pets safe outside your home
  • 26 December 2019 - Adrian Atelj
    Top 10 Indoor House Plants
  • 3 October 2019 - Adrian Atelj
    Top tips for picking your ideal suburb
  • 19 April 2022 - Emma McLaren
    Which Property Type Should You Buy?
  • 9 May 2022 - Danielle Redford
    What you need to know about stamp duty
  • 19 April 2022 - Danielle Redford
    What’s the purpose of a sunset clause?
  • 10 October 2019 - Adrian Atelj
    Understanding supply and demand
  • 25 March 2022 - Emma McLaren
    What is a Granny Flat?
  • 9 May 2022 - Emma McLaren
    What is a private rental?
  • 19 April 2022 - Danielle Redford
    Buying a Property Under a Private Treaty Sale
  • 12 March 2022 - Danielle Redford
    Property Valuations and How They are Calculated
  • 14 October 2019 - Adrian Atelj
    What to look for when inspecting a property
  • 9 May 2022 - Emma McLaren
    A Guide to building a granny flat
  • 27 November 2019 - Pat Carbone
    When is the Best Time of Year to Sell?
  • 9 May 2022 - Danielle Redford
    I want to sell my home; where do I start?
  • 6 October 2019 - Vic Lorusso
    Which property costs are tax-deductible?
  • 10 October 2019 - Adrian Atelj
    Why selling your home is taking longer
  • 183 of 183 articles
    Copyright © 2021 Homes.com.au Limited. All rights reserved.