With the reserve bank increasing rates for a historic 9th time in a row, landlords across the country are starting to feel the pinch. This ultimately flows downhill to their tenants if they are renting out their place. Then you factor in a housing supply issue and rents are now higher than ever.
What can we do as tenants? We can negotiate! Here are some tips on how to negotiate better with your property manager. Let’s look at an example 👇
If your property is currently $450 a week and your property manager wants to increase your rent to $550.
1. Look at similar properties in your neighbourhood and check if this is a fair market price. If it is not, you can send your property manager an email like this.
Dear <Property Manager>,
I have been looking at similar properties nearby and have noticed their rent is only $<rent price>. Based on this information I feel a fair rent price is $<rent price>.
Regards,
<Your name>
For example:
Dear Mr White,
I have been looking at similar properties nearby and have noticed the current fair market value for a property like mine is $500. Meaning I will happily agree to paying $500 a week.
Regards,
Joshua
2. A 12-month fixed term lease to a landlord is more valuable than a month-to-month arrangement. When your property manager says I want to increase your rent too $550 a week. Make a counteroffer like this.
Dear <Property Manager>,
I am happy to accept $550 a week. However, I am not going to be entering into another 12-month fixed term lease at this price. I will enter into another 12-month agreement if the rent is increased to $500 a week.
Regards,
<Your name>
One of our executives used this exact technique to negotiate a $25 a week increase in my rent instead of the $50 my property manager wanted.
It is also important to understand your rights as a renter vary from state to state. For example, in Queensland if you feel the rent increase is excessive and the landlord is not willing to negotiate you can take them to the tribunal.
Learn more about your rights by contacting your local tenancy advocacy service. We’ve listed them at the bottom of this blog for your ease.
Always try negotiating directly with a landlord rather than through a third-party like a real estate agent, as the latter may have a vested interest in you paying more weekly rent.
Most agents charge fees of a percentage of the weekly rent, so if weekly rent goes up, they’ll make more money.
They can also stand to get a payout if a tenant moves out; not only will they be able to increase the rent, an agent also gets to re-advertise the property, which means they’ll often get a relocation fee of up to two weeks of rent.
Know your limits. If you’ve got a good property, you might be willing to splash the cash in an effort to keep it. Just be mindful of what you can actually afford so that you don’t over extend yourself.
We are here to help you, the tenant, have an easy time while renting. Don’t hesitate to reach out to us if you ever need help and don’t know who to turn to.
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