Negotiating rent reduction

The risk of the LL terminating would be the same whether or not you asked for a decrease... ?

 

If $100+ reduction is your "take a hike" response, what response would you give to a $20-$30 reduction on $680p/w? I ask considering those are the figures most are actually using here.

To the OP - I think MB18 gave good advice. If you can point to alternative options open to you in the local area that are similar and more affordable, asking your landlord to consider the change in market on the decline (as you have done on the incline) is not unreasonable. If they decline, maybe consider moving and save some cash. Its not THAT hard if its just the two of you (families are a harder basket).

To be completely honest I am in a similar position to you and am tracking locally advertised rents. I haven't pulled the pin but am certainly observing cheaper options are out there.

 

This situation depends if you're on a fixed or periodic lease. I'm deducting that the OP, unlike MB18, is on a fixed lease from the info given so far. In that case, you signed a contract for a specific price. Unless you have been financially hit and go through the official channels, then I don't see why you would ask for a rent decrease. I'm sure you wouldn't be happy if the LL came to you during a lease and asked for more money.

But if you want to negotiate a decrease at renewal time that is absolutely fine. IN fact you should tell the PM what you believe is a fair offer. The PM will then let the LL know.

The LL putting the rent up 10 bucks per year is nothing out of the ordinary. I'm sure they won't this year though. If they do, they are being ridiculous. I'd imagine if you ask for a little off, then they will probably be fine with that. All depends on what a little is though I guess.

Of course, if your wife loses work, then things change. Hopefully things won't get too bad for you.

 

I'd ask for justification, and given that there is none in this case and it seems to be around market rate, I'd say no and pass the buck to the tenant.
But let's face it, the vast majority of tenants won't move for $30/week. It costs them more than the landlord and is a LOT more work for them.

 

OP is saying August the lease is up and looking to renegotiate then.

 

Are you at end of lease?

What is your bargaining power?

I'm involved in subleasing and hold leases on well over a dozen properties.

I have negotiated permanent discounts between 20-50% (12 months +).

There has only been 1 owner refusing to reduce rents on a handful of properties I lease from him, so I am simply holding until leases expire and I'll hand them back.

Most owners were quite reasonable, however those that played hardball, I just held (or holding) the property until the lease expired, and then drove prices down to where I was profitable.

My family home is in Cherrybrook. From the few times I looked, the leasee has the power. Demand in the area is low. Flex where you can. You have to be willing to loose the property.

Do the math, if it's worth breaking lease and getting a cheaper place down the road, then do that.

 

How's the subleasing going in this climate? Have the subleases asked for discounts as well?

 

How important is it too you to be in the Cherrybrook Tech catchment area? Do you currently have children enrolled in John Purchase Public and are keen to keep them there? If the answers are 'very' and 'yes' you don't have much to work with. There are cheaper places to show as comparables, but not many. If you need to be near the schools, then you pay the premium I guess..

 

Not what it was pre Covid.
A lot of competitors dropping like flies.
That's said, a few are flourishing (yo!).

I'm holding steady. Grateful to the team holding the fort.

Tenant rents are down 20-40% across the board.
Then again, so are mine.

Don't predict a recovery for 18-24 months.
When I hear people (owners/tenants) saying it's almost over. I cringe.

 

I find markets all over Sydney are behaving very differently to each other. The rental market in eg Bondi is very different to Cherrybrook. It all comes down to demand and supply - vacancies with not enough tenants will mean that rents will fall, as they have been in many areas.

Having said that, you're definitely able to negotiate rent in line with the market once you come to the end of a fixed period. Your prior rental increases were probably justified by a rising market. The landlord may also consider a rent decrease based on goodwill since it sounds like you've been a good long term tenant. It will just depend on your landlord's circumstances and the PM's advice.

 

Hours MAY reduce? Right, so they haven't at the moment & you are not financially impacted by Covid?

Irrelevant!

I don't get your point. Rents go up over time. That's what they do. If it's too expensive, move.

And? Cost of living applies to your LL as well, you know.

So, I'm not up with market rents in your area, but others here have checked & say it is in line with others. Of course, you can try to negotiate, but If you were my tenant, I'd be telling you in no uncertain terms what I thought of your suggestion of a rent decrease. You are basically asking your LL to forgo $X of their income to fund your lifestyle by the same amount.

If you really want a rent reduction, then move to an area in line with what you want to pay. Of course, that's inconvenient, it may be in an area that you don't want to live in, it may be further from public transport, or not as convenient, or it may not be in the 'right' school catchment area, if you have a family, but that's the choice only you can make.

 

Notice that $20 every 2 years would be 1.5% increase a year. Lower than the increase in the cost of living.

 

So, you're another 'entitled' tenant I assume.

Maybe you could define 'The Market', because last time I checked there is not one market, but rather it varies greatly from area to area. It's been shown that the market price for the area is correct, so this is just the ramblings of another tenant wanting to benefit by trying to screw over somebody else.

Yeah, I've never encountered any risk in my near 30 years of owning multiple properties.

 

I almost wonder whether some thread like this are designed to make landlords think that rents should be dropped, to become a self-fulfilling prophecy.
I don't think it's the case for this thread, but a couple of the replies are a bit questionable...

 

I own a Hills style family home near Brisbane and the lease is coming up for renewal. I asked the managing agent if we will have to reduce the rent and the PM abruptly corrected my way of thinking. Apparently the rent is fair for the suburb/house and the agent is offering the tenant another twelve months at the same rent. I'll hear back shortly. My other tenant also resigned a few weeks ago at the same rent.

Remember, inner Sydney doth not the entire country make.

 

Its a negotiation. If the landlord is scared or desperate enough, it might work.

Or the landlord decides you are high maintenance and increases the rent more and is happy for you to leave.

 

I discovered last week that United Workers Union is currently pushing for, amongst other things, rent freezes and mortgage freezes for all. Wonder if they thought that one through.

 

There may be consequences at the end for either party but if done politely, irrespective of the reasons behind it, what is problematic about a tenant requesting a decrease? I'm not understanding the angst against making a simple request.

 

I don't own any units / apartments. So no rental drops at all.
I would think the houses of desirable places are always in demand especially near top-end schools.
Anyway - the OP can try to negotiate rent reduction. They have their rights to exercise. If it goes in their favour, they are on a winning streak. If it doesn't, they can vote with their feet and move out to their next rentals or their own property.

Don't need to over invest emotionally and get your knickers in a knot.

 

No, there is no problem at all with asking for a reduction, however if there's a decent PM in place, that question won't even get as far as the LL. There is no angst at this end, just an explanation of why it may not be approved.