Lower rent isn’t just going to drop into your lap, you need to make it happen and timing is everything.Sean Kilpatrick/The Canadian Press
When it comes to asking for a raise, timing is everything. If you ask your boss for one right now, when the economy is uncertain, you’d be laughed out of the building.
But when the economy struggles, so do rents – and they’ve been falling for months. Which means now is a good time for all you renters to get a raise from your landlord – in the form of lower rent.
Still, lower rent isn’t just going to drop into your lap. You need to make it happen. Here’s how.
Be respectful
In any negotiation, emotions can get heated. So, it’s important that you remain polite and respectful. Don’t make it personal, and don’t be nasty. This is a business negotiation, so keep it professional.
Use the words “please” and “thank you.” Don’t threaten or cajole. Don’t disparage your current rental or point out shortcomings – however real they may be – in your landlord’s conduct. Instead, think of a few things you really like about your rental, or things your landlord has done particularly well. This will come in handy later.
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Know your worth
In any negotiation, knowledge is power. Before you begin, research equivalent rentals in your area. Try Zumper.com, Viewit.ca, Facebook Marketplace, or calling the listed number when you see a “For Rent” sign. Find at least three options you could see yourself moving into.
All real estate is local, so this will give you a realistic view of the market in your area. You’ll then have two pieces of useful information: First, whether it’s even worth negotiating. If the rent in your area is on par with what you’re currently paying, then maybe the deal you already have is the best you’re going to get.
The second thing it gives you is leverage for your next step.
Leverage, leverage, leverage
Some people are really good at bluffing. I’m not one of them. That’s why I suck at poker.
I prefer to negotiate with my landlord openly and honestly. That means knowing which rentals are available to you and being serious about moving if your landlord refuses.
If you’ve been a good tenant who pays your rent on time and takes care of the place, you are worth your weight in gold to your landlord. Losing you means that your landlord will have to find new tenants, interview them, run background checks, and still risk getting a nightmare tenant.
Bluffing is always risky, because if your landlord calls you on it and you don’t move, they won’t respect you going forward. Instead, present them with the options that are available to you, emphasize that you’d rather stay, and let them choose.
Here’s an example template that I’ve used successfully.
Dear [Landlord],
I’ve enjoyed living here in the past [# of] years because of [thing you like #1] and [thing you like #2]. Thanks for being a great landlord!
The time has come for me to explore other rentals due to the recent drop in prices. While looking at different rentals in [city name], here are some comparable places I’ve found:
1) [Comparable #1]. 2) [Comparable #2]. 3) [Comparable #3].
The advantages of these other places are that they have [advantage #1] and [advantage #2]. That being said, I really like you as a landlord and would prefer to stay if possible. Would you consider giving me a discount in rent? I’d be happy to pay [price of comparable]/month and, as always, I will continue taking great care of your wonderful rental as my home.
Thanks so much!
Negotiating with your landlord may seem scary at first, but remember that in times of economic expansion, your landlord likely would not hesitate to raise your rent. Learning how to negotiate when conditions swing in your favour is how you balance the power between you and your landlord.
Good luck, and happy negotiating.
Kristy Shen and Bryce Leung retired in their 30s and are authors of the bestselling book Quit Like a Millionaire.