Tenant asking for a rent reduction

[ps0104]

Hi all,

I realise that this forum is made up mostly of landlords, but wanting to get your opinions on an issue with a unit than I am currently renting in Canberra.

My wife and I moved to Canberra in December last year from interstate and signed a 12 month lease at $410 a week for a 2 bedroom unit. At the time we had no knowledge of the local rental market and needed a place ASAP as we were paying for temp accommodation.

Over the past 9 months I have been keeping an eye on other properties in the complex that have been rented out. The only differences between our unit and the ones listed below are the number of allocated carparks (ours has 2).

April- $370 (2 carparks)
May- $365 (1 carpark)
July- $390 (2 carparks)
August- $385 (1 carpark)

Yesterday we received a letter from the agent stating that the owner is happy for us to sign up to a new lease and that the rent would not be increased at this time.

My question is, given that it would appear that we are paying above market rent, are we within our rights to ask for a reduction if we stay on?

Our rent has always been paid 2 weeks or more in advance, inspections have passed with flying colours and we have hardly asked for any maitenance so we are very good tenants.

So what do you think? Am I going to be laughed out of town if I ask, given that we have already been paying $410 for 12 months. Should I just be thankful they are not increasing it even more?

Thanks in advance.

 

[BV]

You know you're asking the wrong people.
We're all landlords here.
How are rental vacancies atm?
Did the other units take long to lease?
I'd present them with your findings and ask for a reduction.
If they don't agree I'd keep an eye on the vacancies and when 1 I like becomes available I'd move.

 

[Delilah]

Your land lord might be renting your unit at the correct price and the others may not have hiked up their rents enough for various reasons.

I once protested a rent rise and because I was a good tenant, they didn't put the rent up but only because I complained.

It might be fair enough to talk to the agent about it.

 

[csc2]

I think a tenant is definitely entitled to ask this question.

I have done it myself while renting but that was when the market was fairly quiet.

What the landlord needs to have in his mind is how tight is the market...

If vacancies don't fill quick then its seriously worthwhile for him to negotiate with you..

At the end of the day for the sake of a few bucks isnt better to have a happy tenant renting than an unhappy landlord having to fork out repayments from his own pocket for a month or two waiting for the unit to be filled...thats my thinking on occasions when the market is lax.

You being the tenant, has to decide also the cost to uplift your furnitiure also...packing, load, unload unpacking....etc etc...power change, phone changing...all a pain in the neck.

Personally Id bypass the agent and ask direct..........I dislike all agents receiving kickbacks...most dont give a toss about the tenant or the landlord.....others for sure will attack the issue differenty............Ive always offered to pay direct, a month in advance...you would be surprised how good this can work to remove agents from the deal.

Ask for 3-6 months with an option...cant hurt! This gives you the option to start looking around for a better deal if thats what you wish to do.

Good luck....greedy landlords!! Lol cough cough!

 

[rugrat]

cann't hurt to ask. But the question is are you willing to move if they don't reduce. Truth is I doubt they will reduce the price, but you never know.

 

[Peterw]

As an agent, when the market is soft, we have had the question asked from time to time. Being a "prickly" topic, being respectful in tone, and also having data etc to back up your request, should also be received in a respectful manner, and no doubt they will come back to you with data that they will try to use to support their position.

 

[chilliblue]

As the others have stated, you can only ask supporting your request with the necesssary documentation.

However, taken into account the cost of moving, change of address etc and whether you are comfortable in the property.

Good Luck

 

[mystery]

If any of our SS Canberra landlords receive a phone call from a tenant in the next couple of days wanting to negotiate a lower rent ...... Blame the mob above ...

Give it a go ps0104, ... you just never know.

Mystery

 

[BV]

If any of our SS Canberra landlords receive a phone call from a tenant in the next couple of days wanting to negotiate a lower rent ...... Blame the mob above ... :
Mystery

Haha they can try but with a que of tenants as long as the harbour tunnel I don't like their chances...

 

[Sheryn]

I had a tenant once that request a rent reduction so they could save a deposit for a house. I said no.

After 6 months I put the rent up and they moved out. Neighbours in the street told hubby the tenants regret moving out of our IP.

If you were my tenant I would not reduce your rent.


Kind Regards
Sheryn

 

[Ridin-High]

ps0104

Interest rates are set to go up, that means rents will go up.

I think $410 locked in for 12 months is a good deal, all mine are on 6 month leases to take advantage of increasing I/R.

Example

Property 1. Went from 335-345-360-420(with a fixed increase of 435pw in 6 months)
Thats in the space of 2yrs

Property 2. 295, 315, 340 18 Months

Property 3. 380, 400, 9 months

Regards,

RH

 

[rugrat]

Q - whereabouts in Canberra?

 

[Lil Skater]

My question is, given that it would appear that we are paying above market rent, are we within our rights to ask for a reduction if we stay on?

Sure, why not. Not sure it'll work though. In Vic there is a law about excessive rent where a tenant can take a landlord to tribunal for excessive rent - but I wouldn't regard your situation as excessive.

If I were you ask for it, all they can do is say no, try maybe even $10 a week and present them with the prices of the similar units. If they say no, sign the 12 month lease and be thankful they didn't want to increase it!

 

[Dazz]

If I had to read between the lines, I'd say you are going to stay.....and this is an attempt to reduce the Landlord's revenue.

At the time we had no knowledge of the local rental market and needed a place ASAP as we were paying for temp accommodation.

Players in any market who are squeezed for options and have no knowledge usually don't end up with the best deals.

Over the past 9 months I have been keeping an eye on other properties in the complex that have been rented out. The only differences between our unit and the ones listed below are the number of allocated carparks (ours has 2).

April- $370 (2 carparks)
May- $365 (1 carpark)
July- $390 (2 carparks)
August- $385 (1 carpark)

• Rented in Dec is one difference.
• Your stuff is already in there is another difference.
• Yours is $ 25 / wk more than August's for an extra carbay. $ 3.57 per day for a carbay.....

I'd be very very careful quoting figures back to the Landlord. You think you know what the figures are. They have the signed paperwork in front of them. You've probably never seen it. You're on very shaky ground there.

given that it would appear that we are paying above market rent, are we within our rights to ask for a reduction if we stay on?

I don't think that's a given. You don't know those figures for a fact. The person you'll be up against will know them as fact.

Also, you are renewing in December....big difference to other months. My experience is that Dec / Jan / Feb things fly out the door and Landlord's take advantage by charging a premium. Why not. $ 3.57 per day. It's chicken feed anyway. Poor *** landlord probably buys his Weet-bix with that money, and you wanna strip it away from him.....

Our rent has always been paid 2 weeks or more in advance, inspections have passed with flying colours and we have hardly asked for any maitenance so we are very good tenants.

Tenant's self congratulation and awards system is not worth a lot. Let other people - like the Landlord - judge your rating....don't do it yourself.

Should I just be thankful they are not increasing it even more?

All depends if you wish to stay. Tell 'em to stick it up their jumper, pack up and choof off if you want. Good luck with the ;

• Packing
• Moving
• Unpacking
• Notifying every known authority of your change of address
• Renegotiating with another Landlord (they may be far worse)

 

[BV]

Poor *** landlord probably buys his Weet-bix with that money, and you wanna strip it away from him.....

Dazz
Now that you've put it this way I feel sorry for the poor landlord so our friend PS0104 should ask for a rent increase...

 

[Deltaberry]

And you should send a bottle of wine to thank your landlord for the increase too

 

[James Sampson]

There is no harm in asking, I have dropped the price for good tennants before. Money isnt everything.

 

[the_captain]

Sorry, but in this investing lark......."money IS everything". It's the clothes on your back, it's the food in your stomach, it's what you stuff away in offset accounts to keep the wolf from the door should an unforeseen event find you such as, job loss, sickness, death in family, lots of repairs etc..etc..

You should be charging market rent and nothing less. You should look for every opportunity to keep your rents in line with what the market will bare. You are running a business and need to focus on cashflow.

I think the original poster can always ask. Go via the agent, thats what I pay them for, personally if I had a direct approach, I'd just tell you to talk to the agent. However, I don't think any landlords would drop the rent........they may only if vacancies were extremely high and they were looking at being out of pocket for 6 weeks or more.

I think everyone needs to approach this landlording caper with a little more "Dazz" and a little less "warm and fuzzies".

 

[Dazz]

Money isnt everything.

....exactly right James....some people just don't get it.

Just the other month, I hit my truck driving Tenants up for a modest raise, nothing too outrageous, in line with market expectations, a slight increase of $ 3,000 per month above what they were paying.

The head truckie bloke said "Awww, c'mon Dazz, we've been good Tenants, how about cutting us some slack."

I said "Yeah fair enough, you've argued your case well, instead I'll drop it back $ 2,000 per month below what you were paying cos you've had a little whinge. On one condition though."

He said "Wassa mate ??"

I said "every Fridee arvo it's your job to put on a Barbbee and we can all sit around and have pink fairy cakes and lemonade."

He said "Done - you're on."


See how easy negotiation is !! Everyone has a win. He gets a slight decrease in rent, and I get to have some scrumptious pink fairy cakes every week and a chinwag with some wuly truly top blokes. Top stuff.


NOT.

 

[chilliblue]

....exactly right James....some people just don't get it.

Just the other month, I hit my truck driving Tenants up for a modest raise, nothing too outrageous, in line with market expectations, a slight increase of $ 3,000 per month above what they were paying.

The head truckie bloke said "Awww, c'mon Dazz, we've been good Tenants, how about cutting us some slack."

I said "Yeah fair enough, you've argued your case well, instead I'll drop it back $ 2,000 per month below what you were paying cos you've had a little whinge. On one condition though."

He said "Wassa mate ??"

I said "every Fridee arvo it's your job to put on a Barbbee and we can all sit around and have pink fairy cakes and lemonade."

He said "Done - you're on."


See how easy negotiation is !! Everyone has a win. He gets a slight decrease in rent, and I get to have some scrumptious pink fairy cakes every week and a chinwag with some wuly truly top blokes. Top stuff.


NOT.

Last month I was called in to deal with an errant tenant who wanted to negotiate his commercial lease down by 35% whilst not having paid rent for over 10 weeks.

The onsite property manager recommended the reduction to the landlord hence me being brought in to assess the situation.

First thing I did was to talk to the tenants PA who advised me that the "almost broke, had a large family to feed, business not doing so well" poor bloke was picking up his newly imported Lotus.

Its all relative!