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How to reduce your rent

Discussion in 'Property Management' started by D.T., 24th Nov, 2015.

  1. D.T.

    D.T. Adelaide Property Manager Business Member

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    I don't watch it myself, but on a morning "news" show there was a segment discussing rent affordability issues. Its aimed at the tenants who think rent is unaffordable. This was their advice:

    FB_IMG_1448322349781.jpg

    Lets break them down:
    1. What skills? I didn't see the segment to get the context of this, but maybe negotiation skills would be handy.

    2. Become a property manager. Let me assure you we don't get wholesale rents

    3. Cut out the middle man. I assume by this they mean rent directly from a landlord. This isn't any cheaper, unless the LL is unfamiliar with market levels (which is fairly common)

    4. Subletting a room is going against what your lease specifies which is cause for eviction.

    5. Be a good tenant. This is compulsory anyway, not any affect on market level of rents.

    How about a few of my own ideas:

    6. Use one of the rooms to grow weed in (I'm joking, please don't do that!)

    7. Move to an area you can afford

    8. Move to a smaller property

    9. Buy instead of renting. If you're renting in a high yield area, chances are loan repayments would actually be less.

    Any others?
     
  2. pinkboy

    pinkboy Well-Known Member Premium Member

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    Rent somewhere that has high vacancy rate. More properties competing for less tenants. May not be desirable areas though.

    pinkboy
     
  3. Biz

    Biz Well-Known Member

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    I saw it, this is what they were basically saying:

    1: If you are a tradie tenant fix things yourself rather than call someone in.

    2: Can't remember what that was about.

    3: They were advising tenants to try and get to know the owner and cut out the agency when the lease is up and ask for a discount...seriously...

    4: If you live near a station or high demand area you should sublet a room or a car space..voiding your lease in other words.

    5: Don't be a rat bag and trash the joint.
     
  4. Bayview

    Bayview Well-Known Member

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    Reduce your rent - move to a cheaper rental.
     
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  5. wogitalia

    wogitalia Well-Known Member

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    Cut out the middle man just sounds like buying a house instead...

    Do love it though! Realistically the only way to save on rent is to ask for it and cross your fingers (depending on the location will determine whether it's a pipe dream or a real chance) or move to a significantly worse house/area.

    It's the one area where you really don't have a lot of capacity for saving.
     
  6. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Reduce your rent.
    I got free rent in exchange for work!
     
  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Reduce your rent - Own an IP in Perth
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Rent in Bondi or other beachside suburb starting in winter when there's less demand.
     
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  9. Bargain Hunter

    Bargain Hunter Well-Known Member

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    Location:
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    Subletting is allowed in all states with several of them stating that approval cannot be withheld unreasonably.

    NSW
    However, if the tenant wants to sub–let only part of the premises or take in a new
    co–tenant, you cannot unreasonably say no. You can ask for information about the prospective sub–tenant or co-tenant such as their name and details of their past rental history. You can ask that an application for tenancy form be filled out if you have one. You could also meet and interview the person, as you would do with a new tenant.
    Victoria
    You cannot assign or sub-let without the landlord’s written consent. However, the
    landlord cannot unreasonably withhold their consent. If they do, you can apply to the
    Tribunal for an order that the consent of the landlord is not required. Contact the Tenants
    Union for more information.
    South Australia
    If you decide to sublet, your landlord can't:
    - withhold their consent without good reason
    - ask for any money to consider your request to sublet
    - increase your rent just because you have decided to sublet
    - add conditions to your lease agreement limiting or denying your right to sublet.
    Western Australia
    If the (lease) agreement does not make any reference to your ability to sublet, then the agreement is deemed to include the provision that subletting can occur with the lessor/property manager’s written consent.
    Tasmania also allows subletting at the landlords discretion.

    In NSW the acceptable reasons for refusal include but are not limited to;
    • if the maximum number of occupants permitted under the tenancy agreement would be exceeded
    • if the total number of occupants would exceed any local council rules and regulations
    • if the person being proposed is listed on a tenancy database
    • if you reasonably believe it would result in the premises being overcrowded.
    Regards

    Andrew
     
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  10. D.T.

    D.T. Adelaide Property Manager Business Member

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    With good reason being that their LL insurance policy is void.

    In majority of cases, best way forward is to get the other person added to the lease (if they're approved). This is better security of the landlord, better affordability for the tenant. Win win all round?
     
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  11. Bayview

    Bayview Well-Known Member

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    I own one in Kalgoorlie - so I know that pain.
     
  12. Bargain Hunter

    Bargain Hunter Well-Known Member

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    Agree that this would be the best solution especially considering another thread where a non-signed sub-tenant is threatening to sue the landlord.

    However consider this scenario. A number of applicants apply and you believe that only one is suitable. You make a decision and sign a lease with this person and the next thing you know the ones that weren't successful are wanting to sub-lease. Unless there is a clear legal reason for refusal then you are required to approve.

    It is clear that the right of the landlord to determine whether they will or won't allow an additional person to reside in their property has been removed. :(


    Regards

    Andrew
     
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  13. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Wot da matta @D.T. Yo don't got skiz?

    I'm trying to avoid mainstream media comments on rental markets. The entitlement attitude just gets frustrating.
     
  14. TMNT

    TMNT Well-Known Member

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    Skills such as Extorsion, Bikie Gangness, bribery, sleeping with the landlord, housesquatting, turning the house into a drug den......... need I say more!
     
  15. juzzy

    juzzy Well-Known Member

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    There's no money in weed, meth labs are where the money's at.
     
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  16. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    [​IMG]
     
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  17. WestOz

    WestOz Well-Known Member

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    Someone from some caring organisation was on the radio over here this morning advising tenants to request lower rent when renewal is up due to mining downturn, vacancies etc, said if landlord doesn't lower it look elsewhere...
     
  18. Bullion Baron

    Bullion Baron Well-Known Member

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    This is critical. In my opinion far too many tenants just take it for granted that the landlord makes the price and tenant has to accept it (& think some landlords think this way too). Stuff that, it's always a negotiation. You do have to have a 'walking point' though, a point at which you are prepared to walk away from the place and move, if you don't have that then it was never a negotiation. You just have to remember that the landlord is under the same pressure, perhaps not as painful as moving, but if you are a good tenant, paying on time, then you may be worth keeping on to avoid re-let fees, periods without a tenant, etc.

    There have been some tense table negotiations at some of the lease renewals for the property I rent, down to the last $5 :D
     
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  19. rhinsor

    rhinsor Well-Known Member

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    Tenant complains about high rent but does not want to move
     

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  20. bob shovel

    bob shovel Well-Known Member

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    Tenants need to understand what "vacancy rate"means and what's happening in the area.

    I laughed at a receptionist in gladstone last year, we wanted a short term lease (rather tush holiday letting, serviced apartments etc) , usually 6 month minimum but knowing people were desperate we asked for a 3 month lease. She thought it was still boom time, looked down at me and used some pm lingo and said LL's want long term tenants blah,blah, blah. I laughed and asked her to get a pm to call me. Surprise surprise pm had a list of places straight up plus started calling LL to ask around. Ended up getting a bargain water front place
     
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