“My landlord has decided as of 2 months ago, to self-manage the house I am renting. I have a 12-month lease. As he is not paying fees to an agent anymore, is it worth asking for my rent to be reduced? He is getting 100% of the rent now” – Milena
Time to negotiate a rent reduction
We asked Property Manager with Harcourts Integrity, Taryn Pearse for her advice asking your landlord for a rent reduction:
“I would not believe requesting a reduction from the owner would be more beneficial because he is now self-managing, although he may comply,” Taryn said.
“The contract he had between himself and the agency is not relevant to the contract you have with him to rent the property at the agreed price.
“His reasons for self-managing may be due to costs and if he took a reduction on rent, he may be put back in the same position as if he was paying management fees, etc.”
Taryn said the rent should be calculated on the market value of the property and not the situation of the tenancy.
The best way to ask for a rent reduction is to provide evidence. If you’re too scared to contact your landlord or property manager, send them an email with links to other comparable properties in the area. This will move you away from looking like a whinging tenant, but someone with market evidence ready to enter a negotiation.
Depending on your state’s property market, landlords and property managers may be in a position to compromise. If you don’t feel you’re getting the best possible deal, negotiate. But remember that not all markets are in freefall.
Got a burning question you’d like answered? Let us know.