1. Review the agreement
It's important to understand the terms and conditions of a rental contract, says Fabio Lombardi, residential sales and leasing consultant at Better Homes. Look for negotiating points that might enable you to ask for a lower rent, such as the deposit amount, cost of utilities and so on. Consider how much you're paying now and what decrease would work for you.
2. Do a bit of research
Make sure you study the rental market in your building or community. Try to find the average rents in similar buildings in the locality and if rents in these buildings are lower, then you stand a better chance of getting a rent decrease, says Fabio.
3. Let your landlord know
Once your research is complete, present everything you have accumulated to the landlord, for example classified advertisements or flyers for cheaper apartments in your community. "This information should include figures to support your findings and help give you the upper hand in the negotiating process," explains Fabio.
4. Convince your landlord
Let your landlord know why you need a rent reduction. Fabio says, "If you've lost your job or fallen on hard times, be honest — present the amount of money you can afford to pay, accompanied by a reasonable payment schedule."
5. Be a long-term tenant
Your landlord is more likely to grant you the rent reduction if you intend to be a longer term tenant and, therefore, a more secure investment.
6. Exploit the negatives
The location and condition of the property can be used as negotiating tools, says Fabio. The property may be in a less than ideal location with poor accessibility, in the middle of traffic congestion, and too far from the bus or Metro station. Alternatively, point out any minor or major damage to the property, such as cracked walls or poor-quality fittings.
7. Complimentary services
Some landlords may not agree to reduce your rent but try to convince them to pay for your air conditioning, TV service, internet, parking or other utilities. "Having these bills covered will save you money every month and maybe as much or even more than a rent decrease," says Fabio.
8. Demonstrate your value as a tenant
Make sure you highlight your assets as a tenant: paying rent on time and keeping the apartment or villa in good condition. Point out any repairs or maintenance that you've conducted on the property and, assuming the figures work for both parties, offer maintenance in exchange for a rent reduction.
9. Offer an incentive
Often, landlords are willing to give you reasonable rent reduction if you agree to pay in one or two cheques. "Propose paying the first few months rent in advance and with one cheque to help support your negotiation," says Fabio.
10. Time it right
Finally, you need to prepare well in advance by viewing other properties before the new lease is set to begin, says Fabio. Your landlord is likely to change his mind about increasing your rent if your negotiation is supported by responsible due diligence.
