Rent Negotiation

purpleozzie

Hi,

We moved into a flat in Muswell Hill, North London Last year, it was on the market at £1200pcm. We got it for £1150pcm.

Our rent is now up for renewal and was wondering whether we should negotiate this rent as it's the credit crunch and all and we've just had a baby so money is tighter.

We've been perfect tenants, always paid rent when due and never had any complaints against us. I cant find any similar properties in the area to see whether ours is over priced. and can't seem to find out whether rents are dropping because of the economic climate.

Are rents dropping?
If so what can we realistically knock off the price?

Premier_2

Definitely.

How much more are you proposing to pay next year?

As you know, there's a credit crunch on and I'm sure your LL would welcome your offer of paying a higher rent. As you've discovered, getting an alternative property is not so easy, so the LL will welcome this information about how highly desirable the property is and so how easy it would probably be to re-let at a much higher rent. With so many re-possessions going on and so many such properties being left empty, it's no wonder the letting market is heating up trying to house all those displaced/evicted owners.

Oh, you were thinking of a rent reduction?
Best keep quiet and hope the LL will continue to accept the current rent

hellokitty08

I cant talk for London, but where I am the rents are not dropping, as we have so many more people looking to rent. If anything some are going for a little more. We seem to have more customers now then ever, so I doubt you would be able to get much of a reduction, if any. Id maybe ask for another £25-£50, just to be cheekie!

purpleozzie

I was under the impression that rents were dropping, people aren't selling their properties so are renting them out instead so flooding the market with property...

From the sound of your post it sounds like your an estate agent.. Thanks for the useless advice tho'

hellokitty08

We have been flooded with people who have sold their homes, but do not want to buy another one at the moment, so we have more customers because people are waiting for 6 months - 2 years (thats what they tell me)before buying again. We also have an increase in people who are now not able to buy because they do not have enough deposit saved up.

tbs624

purpleozzie- hellokitty is right in that rents are not dropping in all areas and/or for all types of rental, however, it's *always* worth trying negotiation. If you agree to sign up for a further 12/18 months the LL may either agree to keep the rent as it is or indeed reduce it by a small amount. S/he has to consider the advantages of keeping you - ie, you are a reliable tenant and its saves him/her the costs & risks involved with starting over with an unknown tenant and a potential void period, but you also have to bear in mind the advantages for you. If you have to move it will cost you - new admin fees, credit check fees, actual removal costs & general hassle plus the possibility that you may have to pay a higher rent elsewhere & end up with a new LL/T relationship that doesn't work so well for you as this one has so far.

If you go in with the view that both of you can gain from the current let continuing and see what the LL has to say.

stevlee

it is all down to negotiation really we managed to cut £50 off per month and also the renewal fee from the estate agent will be paid for by the landlord for the flat in west london. So good luck, every penny saved counts at the moment.

Radiantsoul

I don't think rents seem to be dropping, certainly not to the same extent prices are.

I suppose you could ask, although these things are more powerful when your threat is credible. It is a shame you aren't able to find another flat being rented in a similiar area as that would be your leverage.

JayZed

Ozzie, I live in your general neck of the woods, and my impression is that - at least in the more upmarket areas like Muswell Hill and Crouch End - rents are not really dropping.

Nevertheless, tbs624 is right - negotiation is at least worth a try, and the thing that might swing your landlord is committing to stay for a longer period. Having a reliable tenant, and knowing that you're going to have that tenant for a while longer, is a big plus and a money-saver for the landlord.

Icey77

As a landlord I would certainly discuss and negotiate a new rent if my tenants were to sign another AST for 12-18 months.

Last year my tenants did just that, the LA were pushing for a 6% increase but my tenants and I agreed 4% as it suited them - smaller rent increase and it suited me - not having to find new tenants.

You can only ask! Good luck!

MissMoneypenny

purpleozzie wrote: »

I cant find any similar properties in the area to see whether ours is over priced. and can't seem to find out whether rents are dropping because of the economic climate.

Have you looked on rightmove? They are showing 118 properties in Muswell Hill which are easily in your price range.

If you use Firefox as a browser, you can install PropertyBee and will then see how long the landlord has been looking for a tenant and how the asking prices are dropping in your area.

You could then use these properties to negotiate a lower rate for your the flat you are in or you might find another flat that you prefer more.