Rent Reduction. How to ask in Canberra?

Ask and ye shall get. I did the same thing you did – compared my unit to other comparable units being rented out (same number of bedrooms, carpark spots etc) and found that other properties were on the market for $40-70 less than what we were paying. Sent email to agent, lease is about to run out etc etc, agent replies saying oh yeah, landlord is willing to offer no rental increase this year. I’m like whoopdee doo, thanks – but no thanks. Heres a couple of listings – what does landlord say now?

Landlord came back with a number, and I said… yeah… no. Long story short – I got rent reduction of $55 per week. The truth is, with the cost of marketing the property, even letting it sit vacant for one week will mean significant outlays for the landlord. Plus – lets face it – if the landlord still chooses to keep their price – theyre going to have buckleys in getting a new tenant to pay above market rates. Of course, the catch is, youll have to be prepared to call your bluff and move if they dont budge – but with high vacancies and a soft market like this – you’re much better off elsewhere anyway.

So the lesson is, if your rent renewals coming up and youre a good tenant that looks after the place well – ask for a reduction. Good luck! Lemme know how you went.

sbugden said :

as a thank you i offered to sign on for 12 months and was told that wasn’t necessary.

Me smells a sale in the near future. It’s normally a bit of a warning sign if landlords/agents aren’t super keen to lock you in for another 12 months.

I was paying 380.00 pw for a 2 bd unit in griffith i have been in the unit for 7 years, my landlord had always kept the price of the unit cheaper than identical units in the same complex due to the fact i am viewed as a long term tenant (same realestate for 15 years) i have always known and appreciated this but this year i decided to look at the market and noted that other units or similar ones were up to $35.00 pw cheaper. I sent realestate a letter asking for a drop of $20.00 pw they said we will check with the owner his reply was only $10.00. I knew i could do better so i responded with the questions -how much notice do i need to give to vacate and how much do I have lodged with the BOND board and also sent them the listings for 5 cheaper units in the complex and copied this to the real estate owner (who has known me for 15 yrs) they re approached the owner and he agreed to the $20.00 drop pw still on a month to month but as a thank you i offered to sign on for 12 months and was told that wasn’t necessary. Dont ask dont get.

once the contract/lease term is up, ask for a review of the rent given the current market (and comps in the area)…they should be amendable to this if you’re a good tenant (and, for a landlord, having to re-lease is an issue esp if they know they won’t get that rent again…and even one week off the market is often the “loss” made of a whole year of rent reduction)

i definitely wouldn’t stay and pay too much…if they don’t agree, say you will move elsewhere and i am sure they will start changing their tune

Good on you for wanting to the do the right thing for yourself and the landlord. By the sounds of it you’re thinking things in the right way – i.e. professionally.

Given your starting point, I’d say if you had a conversation with them you could both come to some mutually beneficial agreement. Keep if courteous and don’t get offended if they initially say no – just work through it. Their initial reaction might be defensive (since you’re asking to take income away from them) but if you give them some time to think about it and then get into the negotiation it’s likely you’ll both understand each other’s point of view clearly.

Good luck.

I have always found that if you look after your tenants well you won’t get arguments about the rent.

The first question is are you currently on a fixed term or month by month? If fixed term then really you are locked into the current rate until the end of that term, then you can negotiate.

If you are on a month by month basis (which should be automatic at the end of your first fixed term) then you will find the lease advises how often there can be a rent review whereby you can negotiate a lower price. Clearly on a month by month basis your negotiating power is increased because you can always say you will leave. A tad harder on a fixed term.

The first thing my ex-landlord did when I gave them my notice to vacate was to call me and offer me a rent reduction they saw me as such a good tenant.

ThatGuy said :

If it’s a good situation (agreeable landlords, flexible, maintain the property, etc) then maybe that fact can offset the extra $$. Not having to deal with sh!tty landlords can sometimes be worth $40 a week.

I feel that the initial reaction to a price reduction request will be met with resistance. The landlord may figure that they’ll easily find someone else willing to pay that price. If you do ask them, make sure you point out the dipping market and have examples.

Although, not having to deal with a sh!tty tenant is definitely worth $40 a week. The landlords may only be too obliging if you’ve been a good tenant (pay rent on time, look after the place, etc). If you’ve been a crappy tenant then I wouldn’t even entertain the idea.

This basically.

Even if they don’t agree to the full $40/week reduction, they might counter your request with a smaller reduction (which is probably what I’d do if I were them). Surely it wouldn’t hurt to ask.

I would contact them in writing requesting a rent review. Provide examples within your neighbourhood (the one you already have is perfect, find a few more).

Some additional stats that may help your cause are that rental vacancy rates have increased across the territory from 2.8 per cent to 3.6 per cent (year to June – sorry that’s the latest from the Real Estate Institute).

Additionaly there are currently 2344 homes listed on allhomes for rent. The same time last year there were 2007 – so 337 more properties with many more new developments being completed between now and the end of the year, many of which will be put up for rent.

Finally the “rent” component of the CPI (for Canberra) fell in the September quarter for the first time since 1998.

Good luck and be nice! (…from a landlord who recently reduced his rent by 10 per cent)