Can you negotiate cheaper rent?

Renting a property in Australia can be expensive. The good news is, in some situations there is room for negotiating cheaper rent.

From changing rental prices to market trends and even pandemics that affect people on a widespread scale, there are situations where it’s appropriate to ask for cheaper rent.

Whether you’re considering asking your current landlord or prospective landlord for cheaper rent, you need to be prepared with research and a strategy to increase your chances of being successful.

It’s worth noting that if you put an offer forward to negotiate cheaper rent to a real estate agent, they are required to take it to the landlord for consideration and a decision.

If you put a rental offer forward to a real estate agent, they are required to take it to the landlord. Picture: Getty Images

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How to get cheaper rent

Like anything in life, if you’re considering asking for cheaper rent, it pays to be prepared, do your research and go into with a plan.

Here are the things you should consider before asking for cheaper rent.

1. Do your research on rental prices in the area

If you’re going to request cheaper rent, make sure you go into the situation armed with information that could support your case. This could include showing evidence there are similar properties in the area at cheaper prices, proof that prices have been dropping in the area, or you could even look up the percentage of vacant properties in your area.

Another thing you might want to keep track of and show evidence of, is if the property has been on the rental market for an extended period of time – this could also give you some negotiating power.

Looking for more information about renting? Here are a few videos to get you started:

 2. Check your rental agreement

Before you begin negotiating, ask yourself how far you’re willing to go. If your landlord won’t meet your price expectations, are you willing to terminate the lease early and move elsewhere? If so, make sure you read over your lease agreement first.

Breaking a lease can cost thousands of dollars, and you don’t want to jeopardise your bond. It’s important to understand how much money is at stake before jumping ship (or threatening to).

It is possible to terminate a lease early provided that you and your landlord come to a mutual agreement first. If this is the case, make sure to get any agreements around liability or cost in writing.

Keep your eye on properties that have remained on the rental market for an extended period of time. Picture: Getty

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3. Be prepared with exactly what you’re going to ask for

Once you’ve done your research and checked your rental agreement (if you’re asking your existing not potential landlord), you now need to decide how you’re going to approach them and what you want to ask for.

You might want to write a letter or request a video call, where a face-to-face meeting isn’t appropriate. Either option is fine.

Then make sure you go in with the exact discount you are thinking of, research that supports this discount and be prepared with what you are willing to negotiate on. For instance, your landlord might agree to the discount if you are willing to sign a longer lease. Anticipate this and figure out where you are willing to compromise before you approach with the request.

How to write a rent reduction letter

Putting your request in an email is the next step in negotiating cheaper rent as formal requests around changes to the lease agreement will need to be in writing.

Your property manager or landlord may like to discuss the situation over the phone but it’s best to have the request in writing just in case you need it later on.

Here’s how to write a letter requesting cheaper rent:

If your finances have been affected by COVID

If your finances have been affected by COVID then this should be the main focus of the letter.

You’ll need to outline the following information:

• How much your financial situation has been impacted by the pandemic. Give examples of what your income used to be and what it is now.
• Show proof of your income in the form of payslips or letters from your employer that outline your employment situation.
• Explain what you think a fair decrease should be and for what time period.

An example of a rent reduction letter if you’re impacted by lockdowns

Dear [Name of property manager or private landlord]

I’m writing with regards to my monthly rental payments for [address of property].

Unfortunately my weekly income has been dramatically affected by the global pandemic. The lockdown has forced my employer [name of employer] to [explain the impact the pandemic has had here. For example, your normal working hours have been cut or if you’ve been stood down without pay.]. 

My original income before the lockdown was $XX per week and now it is $XX. Please find attached payslips/letter from my employer as proof of my financial situation.

I want to request a reduction in the monthly rent from $XX to $XX for [amount of time]. This will enable me to subsist financially while I wait for my industry to re-open. 

I understand this will also have an impact on you financially but I hope we can work together to come up with an outcome that works for both of us.

Thanks for your time and understanding, 

[Your name]

An example of a rent reduction letter due to cheaper rental market

Dear [Name of property manager or private landlord]

I’m writing with regards to my monthly rental payments for [address of property], at which I have resided for [amount of months you’ve lived at the property].

I want to request a reduction in the monthly rent from $XX to $XX. This is due to [explain why you think your rent should be decreased. If average rents have dropped and you’re no longer paying a fair market rate explain that with examples]. 

As I very much enjoy living at the property and would prefer not to move I am willing to re-enter a lease agreement for [state desired lease extension length].

I understand this will also have an impact on you financially but I hope we can work together to come up with an outcome that works for both of us.

Thanks for your understanding and I look forward to discussing further at your earliest convenience,

[Your name]