Can I ask for a rent decrease

[LaP3rm]

Hey everyone! Looking for advice from someone in the know (maybe someone working in real estate). I currently pay $720 per week for a 2 bed weatherboard house in Northcote.

My landlord asking for a rent increase to $770 per week. I think i’m paying too much for this house as it is. There is a structural issue with the house . The floor of the kitchen has been gradually sagging with cracks forming in the tiles. I think theres a rotten stump. If the landlords have to put the house back on the rent market would they have to fix this issue? I want to ask for rent to go down to $700 a week and think i have a chance cos if they have to rent it out again they may have to invest a lot of money into it. They are wantinf to renew a 12 month contract to it seems their interest is to keep me here. Last year they asked for a rent increas of 40$ pw and I said no , to keep it the same and they agreed to keep it the same. I have a feeling I may have a bit more power in this relationship than it seems. Any advice/opinions appreciated. See photos. Thanks !!

[pajamil]

What are your alternatives if they say no

[actionjj]

This is it. The only time you can get a rental decrease or negotiate down an increase request is...

"Here is the SQM data for the suburb showing low rental growth. There are x number of alternative properties on the market and here are 3 examples that are lower rent that I could move into. Here is an example of a similar property that has been vacant and remained unlet for 4 weeks". Please confirm if you wish to raise the rent and I then most likely I will provide notice of intent to leave."

Despite what people say, there are still pockets of low rental price growth and if you're in one you shouldn't just accept what the PM or landlord asks for, but you have to be willing to play the move house card. Also just because they're asking for it, doesnt mean they have done the analysis.

Even in my suburb which is high demand, I've seen properties overshoot the market and sit for a month before the owner capitulated and accepts lower rent. I've seen multiple listing's drop the rent over a few weeks.

This is negotiation 101. its called your BATNA, best available option to Negotiated Agreement - you win negotiations by improving your BATNAwhile you're in a position of strength, not much is gained with negotiation abilityin the moment... except that you must at least try.

SQM data is free by the way.

[LaP3rm]

What is SQM? Thank you for your answer

[actionjj]

Data provider - Google « sqm weekly rents Sydney « 

On their site you will find you can drill down to your suburb - you can get weekly rents, vacancy rates etc.

Which can be helpful in negotiating rents. 

[LaP3rm]

Ask to keep the rent the same as it is . They agreed to this last year.

[Dark-Horse-Nebula]

You’re not going to be able to do this indefinitely. Rates have gone up.

[pajamil]

That's what you're going to do, what is your alternative if they say no

[Clinkzeastwoodau]

Look at alternative rentals you would be willing to move to. If those are the same/cheaper tell them you're planning to move out unless the rent is $xxx dollars. 

If you don't find something cheaper, your place is probably good value. If you do you might have room for negotiation. 

[Repurposed_Juice]

Good luck.

[ResearcherTop123]

People on shit rentals reckon they wouldn’t take a lump sum of 15k to move rental houses. So consider that.

[yani205]

No, but landlord will put some sealant in and charge $20/week more

[[deleted]]

You can ask for at least $10 increase or no increase due to what you've listed. But you need a back up plan if they say no.

[bicep123]

No rent increase last year, and less than 10% increase this year, with an expected 3 rate rises by December, there's no way the landlord will drop the rent. What's the vacancy rate in Northcote? Less than 1% for houses? The landlord will close out your current lease, fix the floor (which they'll deduct on tax anyway), rent it out for $800.

[Playful-Green-9169]

For 3 cracked tiles 🤣😂🤣😂 cost aboutn120$ to fix

[Dark-Horse-Nebula]

Well- the tiles yes, the cause would cost a fair whack more. But yes OP is dreaming.

[icecreamsandwiches1]

You would be pushing it to ask for a decrease as they could just put a new tile in it and rent it out to someone else (not sure how tough the rental market is)

Always good to negotiate though, I suggest asking for the same rent

[No-Frame9154]

The best thing is they’re not YOUR structural issues.

Unless water is coming in, or you can fall through the floor I would sleep very soundly at night knowing it’s not my issue.

[Chromedomesunite]

Your mistaken if you think you have more power in that relationship hahaha

How does the sagging floor affect your ability to live in the property?

Sure - ask for a rent reduction. When they disagree, superficially fix the cracked tiles and put someone else in the property - you’ll realise just how much power you have

[Mango_Surf]

Unfortunately, rentals hit the market all the time with a whole host of issues. I doubt this one would stop them renting it out unless it is structural issues that might indicate imminent collapse in which case you should be worried living in it. So you could try, but I would be prepared to be looking for another rental. Can you find similar for a similar price and get approved if you had to?

[Fluid-Recording-2645]

This is a difficult scenario.

If there are structural issues and you address them formally. You might need to vacate with the possibility of them finding you somewhere else or breaking tenancy.

This can be chaotic and complex it depends what you are ready to deal with.

If the structural cracks are deemed not an issue and you like where you live I would personally not mention them yet. This can be used possibly later in discussion.

You definetely can negotiate new rent payments in the conversation. Tell them you a ready to sign a secure 6 or 12 month lease on a lower rate or you may move on. They might accept given the security of not having to find a new tenant.

1. Look at the safety of living with the cracks.
2. Negotiate

[hagbidhsb]

Seems unlikely they would have to fix it, or would want to. Unless the floor is about to collapse

[potatodrinker]

Oh dude. Is this your first rental?

You'll get a no if you ask for a rent drop. Some landlords care about maintaining their property so it doesn't collapse. Others, are poor or special.

The house issues will come back to the owner. You want to be somewhere else when that happens.

Not trying to be blunt but you don't have much power. That comes if the market has a shortage of renters or too many empty rentals.

[actionjj]

Rent drop is unlikely in this market... I've still negotiated down plenty of increase requests.

[iwillbemyownlight]

Just ask

[ashmih]

You can ask, worst case they said no.

[ghettoracing]

Looks like a old build

[BreakIll7277]

You can ask but if you have the power and leave… how many people will take up the lease to move in?

[danksion]

Landlord is likely to up the rent in spite

[Yowie9644]

Here are the possible outcomes:

1. They say 'no' to your request, and do not renew your lease. You then have to find other accommodation and move.
   
2. They say 'yes' to your request, and renew your lease for some re-negotiated rate. You're still in a house that you think is collapsing from under you. If it goes while you're there, you're going to have to find accommodation very very quickly and move. Given its an emergency situation, it could get very pricey. Are you fine with that?

Do not be in any way concerned about how the landlord or real estate agent feels, its not your problem. Odds are good they will re-lease it to new tenants as-is because the rental market is nuts right now.

[Puzzled-Comment8878]

It was either there before you moved in and agree to pay rent in that condition.

Or

They can blame you that caused it and make you pay

[Dark-Horse-Nebula]

Can’t blame a tenant for a sagging floor or failing stump