Negotiate your lease with ease: What you should do when your landlord raises your rent 

As spoken by Forest Gump, “Life is like a box of chocolates; you never know what you’re going to get.” It is inevitable that change will catch us off-guard, say for example when your landlord decides to increase the amount rent you have to pay by a substantial amount.

Suddenly, you find yourself facing a dilemma; on one hand, you are unwilling (and often times unable) to fork out the additional cash per month. On the other, you face the prospect of revisiting the arduous process of searching for another suitable adobe, engaging in intense negotiations, moving and settling down again. 

There is a third alternative that you can pursue; reaching a compromise with your landlord. As a rule of thumb, landlords cannot increase the rent until your lease expires and will choose to do so either when your lease is about to end or has expired. Also in most cases, landlords would rather retain an existing good tenant whom he/she has a good relationship with rather than get a new one as it translates to less paperwork and no period of vacancy.

So, instead of lamenting the fact that your landlord does not have your best interests at heart, it pays to develop a good strategy and gain an upper hand during the negotiation process.

1. Emphasise your stellar track record

Sometimes it does help to boast about one’s self. Build your case and convince your landlord that you are a committed tenant by reminding them of the timely payments you’ve made, maintenance of the cleanliness of the unit and general adherence to whatever rules he or she might have communicated to you.

If you already have an amicable relationship with your landlord, you can even take it a step further by sharing how you have come to view the unit as your home away from home, and truthfully explain why you simply cannot afford to accept a higher rental price.  

2. Support your argument with data

If your landlord appeals to logic rather than emotion, then use facts to support your claims. It is to your advantage that the current rental market is not doing well. With rental prices experiencing a decline over the few quarters, it is crucial that you do your homework and present your findings as evidence to illustrate that you can easily find another rental apartment in the same vicinity at a much lower rental price.

At this juncture, you may also try to persuade your landlord to sign a longer lease term (2 years and more) so as to safeguard both your interests. For you, the rental price will be fixed over the pre-determined period, saving you the hassle of re-negotiating with the landlord annually. 

For the landlord, he or she can be assured that their apartment will continue to yield income despite the slowdown in the property market.

3. Reach a middle ground

If your landlord is still fixated on raising the rent, it is wise to make a list of improvements that you wish to see in exchange for the rent hike. For example, you can request that your landlord compensate by replacing old and worn out appliances or installing new ones such as a dryer in the laundry area. In the event that he does fulfill your wish list, it will still be a win-win situation for you.

Alternatively, you can also request for the new rate to be implemented in the later part of the year when you will receive a pay increment or bonus. Landlords do prefer certainty in their transactions and are likely to give you more time to prepare your finances if they are given a definite time frame and assurance that you will renew the lease.

Remember that the ultimate aim of negotiations is to reach a settlement where both parties benefit. Obviously, it is necessary that you do not push your landlord too far, especially if you are still plan on staying in the property!

Find the rental unit of your dreams today at 99.co!

If you found this article helpful, 99.co recommends 7 rental hidden costs: is that cheap rental unit too good to be true? and Renting on a budget: What you need to know

This is a republished article.