10 Tips For Negotiating a Fair Rental Price
Don't know where to start when approaching a landlord for a fair rental price? Don't fret, we've created a quick guide with some great tips for negotiating.
Renting and leasing property for personal or business needs can be an overwhelming task, especially if you don’t know how to approach it. A big part of this is agreeing on a price. Although properties available for lease tend to already have a listing price, there is most often room to negotiate. In this guide we’ll give you some tips for negotiating a fair rental price.
1. Be kind, but firm
Going in, guns blazing, will never get you what you want. Out of all the tips for negotiating a fair rental price, one of the most important ones is to be kind and fair, whilst also being firm, to showing the landlord what your intentions are.
2. Don’t settle for the base rent amount
Landlords generally advertise with the highest amount they think they can get for their property. This is one of the main areas of your rent that you can negotiate. Start with a counter offer at 10-15% under the advertised amount. After this, you’ll be able to work out a number in between that works for both you and the landlord.
3. Offer something in return
This can be anywhere from paying a couple of months upfront to decoupling amenities that you may not require. For example, if the rent comes with a parking spot that you know you won’t utilise, let the building management know. By doing this, you may save some money on your monthly rent, or, make up for it by subletting it to another tenant.
4. Repairs and improvements
You can always ask for a new fridge or a renovation of the bathroom. At the end of the day, these are investments for the building that many landlords will be willing to improve before you sign a lease or move in.
5. Personal alterations
You can look to include a clause in your lease that will allow you to make personal alterations to the property.
6. Permitted use of the premises
As your business grows, the business requirements also grow, therefore, it is important to know what you are and are not permitted to do. Make sure to negotiate with your landlord the right to sublease part or all of your property if need be. This may also allow you to negotiate a fair rental price to make sure you are making the most of your funds.
7. Go in knowing what you’re willing to negotiate
Basically, everything is negotiable. The rent, term of the lease, options to renew, operating expenses and related costs can be negotiated with the landlord. Make sure to read up on the property prior to any engagement with the landlord, that way, you can go in knowing exactly what has been provided to you, and what you can negotiate.
8. Allocate time for negotiations
Be prepared to go back and forth with the landlord during negotiations, and be prepared for the amount of time this can sometimes take.
9. Do Your research
Know what the property you are interested in and the properties within the area are worth. Also, know what the average rental price is in the area. Knowing this will give you an upper hand when negotiating for a better price as you’ll be educated on the rough numbers within the area. Land Registry Services have a search tool that will help you find all this information. A quick google search will also provide some other avenues of finding this information also.
10. Seek legal and financial advice
Again, of all these tips for negotiating a fair rental price, another important one is to seek professional advice. It can sometimes be forgotten that a lease or a rental agreement is a contract, making it legally binding. Before signing anything, taking over the premises or handing over funds, make sure to contact a contract lawyer.
Janette is a Legal Tech Intern at Lawpath as part of the Content Team. She is in her third year of a Bachelor of Laws with the degree of Bachelor of Social Sciences (Major in Criminology) at Macquarie University. She is interested in Migration Law and Access to Justice.