With the economic crisis caused by the pandemic, real estate rent increases have grown significantly, and prices have skyrocketed. These new measures of gains have hurt many tenants, so now they need a way to alleviate their expenses to pay the rent.
Signing a lease with a landlord can be intimidating when the price is very high. Still, there is no alternative, either because there are no available locations nearby or for whatever reason. Consider writing a rent reduction letter to the landlord if you renew the lease for a higher amount.
What to write in a rent reduction letter?
Before you write a letter, you should consider the importance of keeping the request brief and concise. You should keep a firm and positive attitude, even if you are asking for a rent reduction.
Among the details you can include in the email, you can add the length of time you have lived in the building, your financial problems, why you need to reduce expenses, and your experience since moving into the building.
Try, as much as possible, to make good points about your experiences when you lived in the apartment. For example, you can mention that “I have always paid on time and budget”, “I have never had any problems with neighbors/landlord”, or “I have kept the property in perfect condition”.
Remember always to be polite, formal, and professional, just as if you were asking for a raise in your job. If you have never had a relationship with the landlord and only know them by signing the lease, the manager or landlord may offer the possibility of lowering the final rent, but this rarely happens. However, there is no harm in trying.
Can we negotiate a reduction in the rental rate?
Yes, you can negotiate a reduction in the rent, but you must write this letter with all the details mentioned above, which you can download from the button below.
In case you are going through difficult financial times, it is best to let the landlord know beforehand so that they are not surprised by the note they will receive later asking for a reduction in the rental rate. The landlord will only accept if the contract specifies that the rent must be paid on time, but you can try.
Usually, most landlords would prefer to reduce the rental rate for their property rather than receive no money for not renting the property.
Why should my application be approved?
While your landlord may not want to grant your request for a rent reduction, there are reasons why they may be willing to give the discount.
- Long-term lease
This idea is primarily practical for the landlord since you agree to continue renting for at least two years, depending on the landlord’s discretion. You will have to agree to rent during this time, which will benefit the landlord since the rental of your property is assured for the arranged time, and you will not have to look for another tenant in case you wish to vacate the apartment.
When there are several tenants, the landlord has to carry out more procedures, which means more expenses for him, so a reduction of the lease could benefit not only the tenant but also the owner since he will save money, time, and energy when looking for new tenants.
- Extend your lease until the end of the peak rental season
The landlord probably wants to keep the long-term lease and prefers to extend it for a short period to end the lease during the peak rental season. For example, if your lease expires in December when move-ins slow down, the landlord may consider renewing the lease until the end of the winter season since he will not easily find another tenant.
By signing a lease until the end of the winter season, the landlord may consider renewing it for a couple of months. Otherwise, the property is likely to be vacant, which means the loss of the money you could provide even with a discount on the final rental price.
- Paying in advance
Although it takes more money to pay in advance, this can be a solution to reduce costs. As contradictory as it may sound, reducing expenses by paying more could alleviate your costs. Generally, the advance payment is made for several months, although it depends on the owner or real estate company, as some offer this advance payment annually.
- Check the real estate market situation.
If units are available within the same building but with other owners, you could tell your landlord that you found another apartment at a lower price. The landlord may accept your proposal for a rent reduction to keep his tenant.
Check the local real estate market for current rates and fees to understand current prices and your proposed reduction to the landlord. This way, the deal will benefit both parties.
Why was my request for a rent reduction denied?
The most common is that the landlord does not accept the proposal, especially regarding real estate agencies, and not direct landlord rentals, who may be more flexible when renting your property.
On the other hand, if your request is rejected, it is probably because other people are interested in renting the property for the updated price and without discounts.
How much of a rent reduction should I ask for?
The amount of rent reduction should be reasonable so neither party loses out. Based on the going rates in your state or county, you can look for information about this on the website of different real estate agencies or rentals within the same area.
Also, research the rental market near your neighbourhood, so you can base this on factual information and attach it to your rent reduction letter. This way, you will be able to do the math to determine the average amount paid for rent and, based on that, come up with a realistic final figure.
Another option is to ask neighbours in the building or area how much rent they pay. This way, you can compare prices and even help neighbours who may be spending more money than what is usually asked for renting a home.
- Hoyt, Alia. “How to Ask Your Landlord to Reduce Rent (Template) | ApartmentGuide.Com.” Apartment Living Tips – Apartment Tips from ApartmentGuide.Com, 2 Oct. 2018, https://www.apartmentguide.com/blog/sample-letter-asking-your-landlord-to-lower-your-rent/.
- “Letter/Email Template for Rent Reduction Request from Tenant – Queensland Small Business Commissioner – Publications | Queensland Government.” Welcome – Publications | Queensland Government, https://www.publications.qld.gov.au/dataset/queensland-small-business-commissioner/resource/e1f9c0c7-f06f-48b2-a45f-5886c7f074c4.
- “Writing a Simple Letter Asking for Lower Rent (with Sample).” Sample Letters, https://www.sample-resignation-letters.com/writing-a-simple-letter-asking-for-lower-rent-with-sample.html.
- Vega, Muriel. “The Correct Way to Write an Apartment Address | ApartmentGuide.Com.” Apartment Living Tips – Apartment Tips from ApartmentGuide.Com, 9 Feb. 2019, https://www.apartmentguide.com/blog/how-to-write-an-apartment-address/.