ask for rent decrease?

thriftymanc

I know nothing about this sort of thing so sorry if this is thick question!

Recently a couple of people in my family have said to me that I should ask my estate agent if my landlord will decrease my rent. They keep saying 'oh mortgages are going down so your landlord won't be paying as much now'.

I have no idea whether to believe them or not. Is there any point asking or are my relatives just talking out of their backsides?!

To be honest it would never have crossed my mind before. I've been paying the same rent since mid-2006, it's never been increased. I live in a city centre in a 2 bed flat, I have friends who live in similar sized flats outside the city centre and they either pay the same or more than I do. I just did a quick search on a property site, the only 2 double bed flats in my area that are less rent than mine are outside the city centre (bar two, but they were tiny compared to mine and were right on the edge of the centre quite a long walk from the shops etc, whereas everything is on my doorstep). I've seen two other flats in my building go for £50 a month more than I pay for mine. To be honest I always thought my rent was good for what I got.

I've purposely not said how much my rent is because I don't want to start any kind of debates on whether I'm paying too much or not enough or whatever! I just want a fairly simple answer... given the state of house prices and mortgages and whatnot, is asking for a rent decrease realistic at this time? I don't want to go ahead and do it based on what my (potentially horrendously unknowledgeable) relatives have said and end up reminding my landlord that hey, rent prices aren't fixed forever, howabout an increase instead?!

beingjdc

Their logic is nonsense, but their point may be correct.

What your landlord is paying for his mortgage doesn't matter. Supply and demand matters. If you left, could he get someone to pay the same or more? If you left, could you get somewhere else for less.

It seems from what you've said, not. That said, asking prices and agreed prices are not the same thing for rent, any more than for sale!

themanbearpig

Only ask if you have something lined up and agreed for a lower price, or something significantly better for the same price.
Once you've done this, ring your landlord, giving him the details of the new place, and give him your notice, or request a reduction of the rent to the market price.

pickles110564

So when the mortgage rates go up to 8% or 9% I expect your realatives will be telling you that you must increase you rate so that the LL does not lose out!

DawnW

It sounds as though you have a reasonable deal for the market in your local area, and that you already realise this, especially since your rent has not been increased since 2006. The mortgage rate has nothing to do with it. Your LL may not even have a mortgage against the property. It sounds to me as though your LL could ask for a higher rent if the property became vacant, but is happy to let things stay as they are because you are a good tenant. Doesn't mean s/he would reduce the rent though!

Debt_Free_Chick

Just to agree with others .... mortgage interest rates are nothing to do with rents. If your LL has a mortgage, it may be for only a small proportion of the cost of buying the property - or he may have no mortgage at all. Even if he has a mortgage, this is only part of the cost of having a property available to let - there are other costs too and these are likely to have risen since 2006. Even so, he has not raised the rent to reflect those increases.

Rent is what is "reasonable" for a specific property in a specific location - by reasonable, I mean what tenants are prepared to pay.

If you're otherwise happy in the property, I personally wouldn't "rock the boat". You may just prompt a rent increase or a notice to quit, if you do!

Badger_Lady

As above, really - you have no idea what the LL's circumstances are, indeed he might just be managing to cover a fixed-rate mortgage for all we know! What matters is the market value; you've done your research and worked out that you're paying a fair rent. I wouldn't rock the boat personally - if you've enjoyed the flat for 2.5 years without the LL threatening you with rises, why would you threaten him with drops?

I actually clicked on this thread because I let out rooms to lodgers and I have just offered one of them a rent decrease, but having read your detailed post I can see that it's completely different circumstance

space_rider

A friend of mine rented a house and after the 6 months was up he negotiated a reduction which they were happy to do as he then signed up for a 12 month tenancy.

Debt_Free_Chick

space_rider wrote: »

A friend of mine rented a house and after the 6 months was up he negotiated a reduction which they were happy to do as he then signed up for a 12 month tenancy.

And the circumstances were .....?

I don't mean to be rude, but this doesn't help the OP unless your "friend's" situation was one that enabled the OP to take advantage of the situation.

carl1981

Have you thought of looking at his yield were the value of property held in shares?

If rental yield is lower, I'm sure you are going to offer an increase

Gorgeous_George

There are always plenty of people with the best of intentions offering rubbish advice. (I do it on here all the time). (maybe even now)

BTL mortgage rates are typically 7%+. That is higher than last year despite the base rate drops. This is due to the banks increasing the risk profile of BTL mortgages. Many LLs will be on fixed deals at around 6%. Some luckier ones will be on rates less than 3% (like yours truly).

It is, as has been pointed out, market rates that you need to consider plus whatever you can offer the LL in lieu of rent. It sounds like you are paying less than market value and you could expect your LL to propose a rise (as I will) in the near future.

You could offer to sign a no-break AST for 12 or 24 months in return for no rise. You could point out that you are finding the rent unmanageable and ask if the rent could be reduced slightly in return for a new AST.

As always, there is no harm in trying. Always negotiate from a position of strength. Research the market and be prepared to compromise.

GG