Tips to Negotiate Lower Rent

According to FNB’s Residential Property barometer, the rental market activity was above average for the first quarter of 2008, with the homebuyers market sitting at a mediocre level.

This proves that more and more people are choosing renting over buying, showing the importance of being aware of the negotiating power one has when looking at a rental property.

Would-be tenants should find out what similar properties in the area cost to rent. This can be used as a bargaining chip to negotiate lower rent. You can also page through the Junk Mail and other property listings to get a good idea of the market price.

Also find out how many units are standing open when moving into a complex or block of flats. If there are a lot of vacancies, it is the perfect time to negotiate a lower price.

Always let your landlord know how responsible you are by handing over references from work, or telling them about your qualifications. This will put you in a stronger position to negotiate.

Offer to sign a longer lease in return for a rent deduction and a guarantee that the rent won’t rise above inflation for this duration.

Find out how long a property has been empty. A landlord loses money every day his property is vacant, which means you can negotiate a good rent.

By offering to do some maintenance, like painting or maintaining the garden, you can also shave some money off your rent.

All and all it is important to negotiate. Offering 30% less is probably a bit extreme, but you should be able to get between 15-20%.

(The information in this article is courtesy of Karen Iten, “It’s a Good Time to Negotiate Lower Rent” Moneyweb, 15 September 2008.)

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