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5 Tips To Negotiate Rent Increase With Your Landlord

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5 Tips To Negotiate Rent Increase With Your Landlord

While real estate agents suggest not to spend more than 30 percent of the monthly income on paying rent, most people end up paying around 50 percent

People living in the major cities of India are spending a major chunk of their income into paying their house rent. This has been observed especially in a city like Mumbai where the average rent of a property per year has increased by 18 percent since last year. Cities like Gurugram and Chennai have witnessed an increase of 11 percent and 15 percent respectively.

As it is the right of every landlord to be able to increase the rent of the property put on a lease, there have also been cases when tenants were not given a legal agreement about how much rent would increase per year or what would be the notice period in case the landlord does not want the tenant on his property anymore. 

In most cases around India, the landlord increases the rent by 10 percent every 11 months. However, a tenant can always try to negotiate this increase in rent with the landlord to avoid paying a huge sum of money.

RealtyNXT lists the various strategies tenants can use to negotiate the rent with their landlords.

1. Comparing With Similar Properties

Tenants must take some time to research what is the current rent of a similar property in the area in which he is staying. This means that if the tenant is currently living in a 1 BHK apartment, he must find out the rent paid by other tenants living in 1 BHK flats in the same area.

A tenant can find out this by talking to his neighbours living in the same or adjacent buildings, searching online on property portals and asking the real estate agents or brokers of the locality. If the research suggests that the rent for a similar property in the same locality is less than his, then the tenant must talk about it to the landlord and demand for revising the rent increase. 

2. Request For An Upgrade

When raising the rent, tenants can request for upgrading various damaged corners of the apartment. This can include painting the walls, renovating the cracked walls, broken windows or electrical fittings that were provided by the landlord if any.

However, a major mistake that tenants usually make is requesting a long list of upgrades. Asking for one or two requests at a time will make sure that the landlord agrees to fulfil the necessary requests without which it would be difficult for the tenant to live in the property.

There have also been cases when the landlord has not increased the rent because the tenant wished to vacate the premises if renovations are not made by the landlord after increasing the rent.

3. Mentioning The Track Record

If the tenant has always been regular in paying the monthly rent and has neither made damages to the property nor disturbed the neighbours, then talking about their clean track record to the landlord helps.

It usually takes a lot of time for landlords to find good tenants as they are always looking for people who will take care of their property and at the same time pay regularly. A good tenant is always on a position of strength while negotiating the increasing rent during renewal.

4. Suggesting A Longer Lease

If the tenant has no plans to relocate in the coming years, asking for a longer lease is the right option to negotiate an increase in the rent. Sometimes for landlords, it is much more important to be assured that the property will be occupied for a good amount of time than increasing the rent and being insecure about losing the tenant. 

A longer lease of two or three years makes sure that the tenant does not need to pay higher rent every year. 

5. Provide Services

In case the landlord denies negotiating the rent or making the repairs, the tenant may offer to renovate or repair the damages in the property instead of paying a higher rent. Most people in urban areas have benefited from this as spending on petty repairs is better than spending thousands by paying extra money on the property which needs basic repairs.

When landlords are assured that someone else will pay for repairing the damages of their property, then there are high chances that they will agree to negotiate about the rent renewal. 

ALSO READ: 5 Things Tenants Need To Know Before Signing A Rental Agreement

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1 Comment

1 Comment

  1. Suresh G

    July 3, 2019 at 9:58 pm

    A very comprehensive structure of writing on an important subject.

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