What are the 5 ways to negotiate a rent increase with your landlord?

1 Answer(s) | Rentals

RE: What are the 5 ways to negotiate a rent increase with your landlord?

Do you feel half of your salary is wasted on paying your apartment rent? Then it might be possible that you’re paying a higher rent than your apartment’s actual worth. Although major real estate agents suggest that 30 per cent of your monthly salary should be used for paying the bills of living space but the reality is quite different. Further, with the rise in demand for living space in large cities like Mumbai and Delhi, the owners have been acting on their terms. Frequent hike in the rent amount without notice has been a common these days and is troublesome for people living in a rental home or space.

According to the law, a landlord can increase the rent only by 10 per cent every 11 months. However, due to high demand, they don’t shy away from asking for more frequent hikes these days. Highly populated cities like Gurugram, Chennai, and Mumbai have seen an increase of 18, 11 and 15 per cent increase in rent each year respectively.

Additionally, the government has laws related to the notice period, such as the Transfer Property Act of 1882. According to this, the landlord has to send a notice to their tenants before revising the Rents. But since most of these rules aren’t being followed and the tenants are not aware as well the sudden increase in rent can put a strain in tenant’s pockets.

However, if you know clever tips and tricks like the one mentioned below you can easily negotiate with your landlords against this practice and live in peace in your rented space.

  1. Compare the rent with other similar properties in the area

Before agreeing to pay the increased rent you should look up the rent for similar properties in your area. Looking at the prices of properties in your locality will give you an idea about the market value of your apartment. Further, you can use this data in your advantage to negotiate the rent with your landlord as well if he is asking for a much higher price than the property’s actual worth.

  1. Demand an upgrade along with the hike in rent

If you feel like your landlord is forcing you to pay a higher rent than you can demand an upgrade in the services as well. Since you are paying a higher price for the same property you can rightfully demand your owner to upgrade the property as well.

For example, you can demand the repair of damaged parts of the apartment, new paints for walls and a replacement for broken or old furniture as well. However, instead of a long list, requesting a few upgrades can do the trick. In many cases, landlords don’t increase the rent due to his reluctance in making the renovation demanded by the tenants.

  1. Know that if you are a good tenant you are at an advantage

If you have a good record with your landlord then you can use that as an advantage as well. Since a tenant who is civic and pays the rent on time is a rare gem these days. So, you can use the record to your advantage as well since finding good and cooperative tenants are becoming harder these days. Therefore, if you have maintained a good relationship with your landlord over the past you can use this in negotiating the rent.

  1. Suggest a longer lease

If you do not plan to relocate in the upcoming years, then suggesting a longer lease can easily help you in negotiating the rent. As a tenant who will be renting the property for a longer time is desirable for landlords as well. Therefore, you can use your long term plans to your advantage in negotiating the rent. As sometimes it’s more important for landlords to get a long term tenant who will be a constant source of income for them.

  1. Provide Services

If the landlord denies renewing the apartment instead of paying a higher price you can offer to renew the apartment at your expense. Someone willing to do the repairs on their property from their own pockets can be a tempting offer to the landlord as well. So, if you can point the flaws in the property and offer to repair them your landlord might reconsider the increase in rent.

Since you are now equipped with all the ways to negotiate the increase in rent. Calling and talking face to face with your landlord won’t be a problem anymore. Be calm and composed while negotiating the rent with him and be precise about your expectations and intent. Further, with a proper logical conversation, you and your landlord might agree to negotiations on friendly terms as well.

So, next time he imposes an unfair hike in rent gear up for the negotiation and arranges a meeting with your landlord before paying the rent. You can use the tips mentioned to your advantage and get an upper hand in negotiating the rent.

 

Answered on July 21, 2020.
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