How to Negotiate on Rent Increase With Landlord
Low-income middle-class families, who struggle to pay high rents while taking care of other family needs, especially, feel the pressure of rapidly increasing rent. Most landlords follow the common rule of a 10% increase in rent each year, with a slight margin for negotiation. Rent increase being an inevitable scenario, a tenant should be aware that there is always scope for negotiations.
A lessor has the right to revise the rent provided he/she sends a notice to the renter, clearly written according to the norms mentioned in section 106 of the Transfer of Property Act, 1882. However, a first-time lessee or an experienced tenant should know that effective negotiation is possible without causing any discord in the landlord-tenant relationship.
Know the Market
The renter should be well informed about what the average rents are, in the locality he/she is living in. One way the tenant can opt is, browse through property portals such as pinnacleproperties4u to get a fair idea about the prices of rental properties in the neighborhood. He can also check with neighbors or brokers to get an idea about the market rates.
Ask Politely
Be respectful in your approach: either you go for your lease renewal or negotiate against an increase.
Know about Apartment Worth
Before you start the discussion, understand what the apartment is worth. In case, you feel that you are not getting enough services or comfort for the amount you are paying, discuss with the lessor. Check the local rent guidelines and laws in the area and confirm if the increase is legal or not. Also, if the apartment was rented previously, the owner is likely to expect the last received rent as the minimum rent.
Convince the Owner of Your Worth
For a landlord, a bad tenant can cost more than less rent. Your track record as a good tenant could become a great bargaining tool for you.
Remind your owner of your timely payments and any extra work that you have done to maintain your apartment. It may also help to inform your owner that you really want to stay and you are not one of those tenants always looking for the next best rental. You are committed. Also, highlight your efforts that you do to keep the apartment in good condition, as the cost of renovation matters a lot for a landlord.
Propose an Extended Lease Agreement
For some owners, long association with a renter has more worth than an increased rent. If you do not have any plans to relocate in the immediate future, you could perhaps consider a 2 or 3-year agreement with your landlord.
Pay More Upfront
Cash is King. If you plan to live throughout your lease period, you might want to consider paying the full year of rent upfront and have a better hand in the negotiation process. A landlord is more likely to have the full year in advance without having any tenant issues. Alternatively, sway your owner from raising rent insignificantly by paying a few months in advance. At first, an increase in rent may seem like the owner will make more money over time, but once he sees the immediate payout of your prepayment, it may be difficult to reject your offer.
Consider asking for an upgrade
If your rent is increasing, consider asking the owner to make a significant replacement or repair such as painting the apartment or fixing anything broken.
For more updates on rent agreement and other lease-related news or information, keep reading Pinnacle Properties.
-- Article written by Neha Khanna