Negotiating a rent reduction before renewing the contract (or moving out)

arte

Hello everyone,
We are soon due to renew our lease for the apartment we have been renting and was wondering if anyone could suggest the best way to approach the landlords for a rent reduction and what percentage in reduction would be ok to ask for?
We have been renting this property for 4 years now, never had any issue from our side (there are actually a few things that have never been fixed by the landlords), we had one rent increase the first time time we extend the lease and managed to get not increase last time we renewed again although it was asked. In March our contract will end and as usual the landlords, through the estate agent that deals with the contract (they don't manage it but only look after that), will get in touch to ask if we want to extend again, probably also asking an increase in the rent. Since both of us living here are self employed and working in an industry that has been badly damaged by the Covid situation we have been suffering a lot financially like many others. We have not asked any reduction in rent so far, as we had some savings and managed to get some support through the self employment scheme (well just one of us), but the money coming in through that scheme only cover about three quarters of rent/bills here so we will really need to negotiate a reduction in rent if wanting to renew again here. We've noticed that the rental market in many parts of London has slowed down, the same seems to be in our area (Elephant and Castle), in a way it would seem easier just to move somewhere else and cut the costs, but of course we like this flat and would prefer to extend here, plus having had very little income this past year we are worried that if going for a new place it would be hard to show any financial reference, except the savings, and that could make landlords less keen to rent to us.
What would be the best way to approach our current landlords, playing also in advance before the estate agent they use will start contacting us, and how can we understand what could be a reasonable reduction in rent price to ask for similar properties on the market?

Thanks a lot for any help!

anselld

The only thing which is "reasonable" is to compare the current market by looking at comparable rents being asked locally for similar properties.  Your personal circumstances are hopefully temporary and the Landlord is unlikely to take these into account in a renewal of contract longer term.

SpiderLegs

How does your current rent compare to similar properties?

numbercruncher8

Personal circumstances are not really much of a reason, that may go under other stuff like deferral.

If the market has declined, perhaps the easiest way would be to just print out the Rightmove ads or send the links showing that comparable places are available for less.

Combined with your cashflow problem though I am not sure the landlord may want to agree. It may be those rents are cheaper but if they know you can't afford to move to them then it is a bluff you can't pull off.

A lot of people would like to live in Zone 1 as well but can't because of the money, it would just be easier to move somewhere else. 

arte

SpiderLegs said:

How does your current rent compare to similar properties?

Sizewise we have seen similar properties asking up to £300 less per month. This flat is in a pretty new building (6yrs old) so not all the other properties we saw are as new of course. We were thinking to try and ask a 10% reduction for our 

Slithery

arte said:

...but the money coming in through that scheme only cover about three third of rent/bills here...

So no problem then?

arte

anselld said:

The only thing which is "reasonable" is to compare the current market by looking at comparable rents being asked locally for similar properties.  Your personal circumstances are hopefully temporary and the Landlord is unlikely to take these into account in a renewal of contract longer term.

Hopefully yes our circumstances won't last much longer, at the moment neither of us as any income except the one getting the self employment scheme. I believe we just need to hope in our landlords understanding it's a very difficult time for us and try to find an agreement, even if just temporary. 
The average asking price of similar local properties seems to fluctuate between a £200 more than this one and a £300 pound less.

arte

Slithery said:

arte said:

...but the money coming in through that scheme only cover about three third of rent/bills here...

So no problem then?

That's the only money we have coming in, less than whole rent and bills alone. Not a situation that of course it's possible to stand for much longer. A little reduction in rent would surely help us stay here until things start to get back to a more normal way

arte

Slithery said:

arte said:

...but the money coming in through that scheme only cover about three third of rent/bills here...

So no problem then?

Ouch! Only just realised than instead than writing about three quarters I said three thirds. Just corrected that

theoretica

I think as others suggest that talking about your lowered income makes you less desirable as a tenant, and so the landlord less likely to agree.  I would suggest a straightforward you see places just as nice and with lower rent and while you like where you live you don't like it enough to pay so much more for it. I would also give them a while to think about it, no one likes feeling pressurised or rushed into a decision.  Are any of the comparable cheaper flats with the same agency?

diggingdude

Can't hurt to ask. I can't imagine people will be clambering to take on the property in the current climate so a slight reduction may be preferable to a void