How tenants can negotiate a rent increase with their landlord

As the Australian property market undergoes some tough challenges, increasing interest rates means many landlords are looking to increase rent on their properties. This can be a worrying time for tenants, especially those with little room in their budget to navigate this change.

So, what can you do to negotiate this increase with your landlord? Fortunately, there are many ways to engage in this conversation respectfully so that everyone feels heard. Here are some tips for managing a rent rise notice.

Research the local area

You need to have up-to-date information if you’re going to negotiate productively. This means researching your local area to discover how rental prices have changed. If you find your rent is drastically below similar properties in your neighbourhood, it might be tough to argue against a price increase.

However, if your research shows that you’re already paying a similar amount of rent or that prices have only gone up a small amount compared to the increase, using this information to suggest a lower raise can be effective. Understanding your local area’s rental market is essential to negotiating with your landlord effectively.

Sign a long-term lease

If you’re not already on a long-term lease, offering to sign one is a great way to avoid a sharp rental increase. With the property market experiencing considerable change, this lasting agreement can benefit your landlord as they know someone will pay the rent for at least the next 12 months.

This sustained income is a satisfying compromise for many landlords seeking a rent raise. Finding reliable tenants can be a costly and time-consuming experience, so some will choose lower rent and a reliable tenant over the highest income possible.

Highlight your reliability

If you’ve been notified about a rent increase, reminding your landlord about your reliability is a clever way to kickstart a negotiation. For example, you might highlight how you always pay the rent on time or haven’t caused a fuss over minor issues that cost landlords money.

Don’t be afraid to send photos of the property to capture the details. This step might just get your landlord to reconsider a rent increase, as they realise that your dependability as a tenant outweighs their need for extra income.

Speak to the experts

Get in touch with the experts at InStyle Property Management to receive excellent advice on operating your rental properties. Our highly experienced team will help you make the right decision regarding your investment property and tenants.