Finding a rental that you love, and that you can afford, is a great thing. But living in a rental you love, then having your rent raised can be, well, not so great. There are many reasons why a landlord will raise the rent, from market trends to property taxes to maintenance costs. As a tenant, though, it can be hard to hear about a rent increase, especially if it means that you will struggle to come up with the additional monthly funds.
But just because your landlord reached out to you about higher rental costs, it doesn’t mean you need to settle for their offer. Though it may seem uncomfortable to some, negotiating with your landlord can help keep your payments stable for at least another lease term, or at least minimize the increase in costs.
If you are facing a rent increase that is over your budget or will take more than 30% of your monthly income, there are some steps that you can take for negotiating with your landlord. Keep in mind, your landlord has the legal right to make these decisions. Being a good tenant, having a reputation of paying rent on time and having a positive relationship with your landlord may help, but here are four more steps to help you negotiate.
Do Your Research
If your landlord has decided to raise your rent, take a look at other rental costs for similar properties in your area. Is the increase in cost in line with what others are paying for the same square footage and amenities? Is it likely that if you were to leave, your landlord would struggle to find a tenant to pay this higher cost? If you find that the rent increase is significantly higher than the average, bring this to your landlord’s attention.
Talk to Your Landlord
Keep the lines of communication open between you and your landlord. Be sure to stay calm and be respectful, especially when negotiating a rent hike. Prepare concrete examples of your history, a record of payments made on time and reminders that you are a non-disruptive tenant who has kept your rental in good condition. As long as you approach this conversation with respect and the willingness to negotiate, you may have a better chance of lowering or eliminating the higher cost.
Write a Letter
If you don’t feel comfortable talking to your landlord directly, consider writing a hardship letter. These types of letters are used to explain your current financial situation and the burden that an increase in rent will put on you. As suggested above in having a conversation, be sure to include additional reasons why you are a good tenant. Putting this conversation into writing also keeps a paper trail for your records and can give your landlord extra time to consider your request for negotiation, rather than being forced into responding right away.
Offer a Compromise
Instead of trying to halt a raise in rent, consider offering something in return for a lower increase. Offer to sign a longer, fixed-term lease in exchange for your rent to stay at its current rate. Longer leases are incentivising for landlords, as it ensures the reliability that comes with continued tenancy. Plus, if you love your rental and are planning to stay put for a while, there is no reason to stick to a shorter lease.
