Ever since the concept of property rentals came into existence, it has always seen one direction – going up. In the history of rentals, this is probably the first time ever that renters/ tenants are taking control over rentals and other terms and conditions. Wish to learn how to take the rent reduction talks with the landlord forward? Read on:
With people having moved back to their hometowns at least till the work-from-home model continues, rental units that would go on rent within a matter of days are now sitting vacant for weeks. Secondly, the pandemic has rendered a lot of people – both working as well as business class – out of work. This has also resulted in people moving into either smaller units or units that are available at lower rents.
After that too, the situation is by no means in favour of the landlord. They aren’t getting the rentals they were used to, and in some cases, are even offering to pay the broker fee or months of free rent.
This parity between demand and supply clearly implies that negotiation is the name of the game. How to go about the rent reduction is where your skill-set actually comes into play. While the landlords are generally empathetic towards the tenants stuck in the current scenario, it is important that you, as a tenant, place your points amicably so as to foster a good relationship. The following recommendations may help:
Keep it Transparent and Polite
While you are under the stress of having lost the job or with monthly pay cuts, understand that the pandemic isn’t biased and might have hit the landlord even worse. Be transparent about your situation so that the landlord knows where you are coming from. Be respectful while putting your point across instead of merely looking forward to benefiting on the back of your landlord.
Both parties should be flexible and willing to adapt to the current financial situation and this is possible only through transparent and respectful conversations that happen with mutual concern.
Have a Plan in Place
Before approaching the landlord, set a clear picture in your mind for yourself regarding what you want. It is important that you are realistic with the amount of reduction you seek. For this, you can do a small market research on your part considering the price of similar properties in the neighbourhood.
If you are not on a month-on-month basis with the rent payments, this is the time when you could ask for this if it suits your needs. This will give both sides some flexibility.
Leverage Your Track Record
What goes around, comes around, they say. If you have always paid your rents on time before the pandemic, chances are high that the landlord will agree to your conditions. They too understand the current scenario and would not want to let go of a trustworthy party. While a substantial cut might not be possible, you both can discuss and come up with lease changes that suit you both.
Try keeping the rent reduction discussion on a phone call or a video call so the norms of social distancing can be maintained. As a side note, it is advised that you both agree to a written note documenting the result of the discussion so as to avoid disputes in the future.
