liltoancau
New member
Hi folks,
We were rebuffed earlier this year when we went to our landlord asking for a permanent rent reduction - they offered $10 off our existing rent of $530 p/w IF we signed on for 12 months.
Needless to say that was a hard pass from us. We decided to wait until late in the year for the market to get worse. In a spot of luck, one of the exact same units came on the market around the corner and has sat empty, originally at $550, and now at $500 with no takers.
Pre-work: I assessed places in the neighbourhood, right across the suburb and the one next door. Thanks to KoalaData extension on Domain I was able to keep a close eye on time on market and price drops.
Last week I called around agents asking about places within the block. I confirmed availability and whether the owner was open to offers, and how low they might go. All the properties were open to offers, with a 3 bed willing to drop to $550 the biggest deal - and only a few doors down.
The email: we had aimed for the heart strings but this time we went for the purse strings. I made sure our case was clear and calculated the loss they’d face with us moving. I made it clear there was a high chance of us moving and by adding the vacancy lengths for other properties I was able to support the likelihood they’d be out of pocket more than the cost of reducing the rent. I didn’t offer to sign on for another year, I just paid out the reality of the situation.
Here’s the email, with addresses removed:
Dear [property manager],
Thank you for speaking with me last week. As discussed, I'm writing to request an ongoing reduction to the rent for [our property]. We previously requested a reduction in May, and were offered a $10 reduction with a 12-month contract, which we declined as this offered us little relief.
The rental market has changed considerably since our last request, and [info about our situation]. In light of our need to reduce costs, and the new realities of the rental market, we now believe a new rental rate is appropriate for this property.
We believe a new rate of $480 p/week is reasonable - based on the following properties:
[Property 1]. This is exactly the same unit as this one in the same complex, more modern, with some appliances supplied.
Rent: $500 P/W
Day on market: On market 26 days at $500 P/W, 103 days at $550 P/W. Owners are open to a lower offer.
[Property 2]. Two bedroom house with modern bathrooms and air conditioning.
Rent: $480 P/W
Days on market: one year.
[Property 3]. A three bedroom house, older but partially refurbished.
Rent: $590 P/W advertised.
Days on market: on market 19 days at $590 P/W, 189 days in total. aowners are happy to accept $550 P/W
[Property 4, slightly further away]: Modern, light-filled two bedroom house with two bathrooms.
Rent: $525 P/W advertised. Happy to accept lower offers
Days on market: on market 60 days at $525 P/W, 144 days at $550 P/W
These are just a few examples that demonstrate the market has shifted, including one that is the same unit as this one. We have also discussed with fellow residents within [our suburb] to confirm the current market - the vast majority have negotiated reductions this year.
A rental rate of $480 P/W is significantly less than the costs involved should we vacate this property. If this property stays empty for 4 weeks it would cost our landlords $2,120 + leasing fee at the current rent at least. It is likely the property would be empty for more than four weeks, so this is a best-case scenario. A reduction of $50 P/W would cost $2,600 annually by comparison.
If we cannot secure a reasonable reduction in rent to bring the property in line with the current rental market, we may need to look at other options at today's market rate.
Kind regards,
[my name]
A week later we received confirmation that the landlord was accepting our proposal, and we’re asked if we want to sign on for 12 months - but that’s optional.
To be honest I expected to get $500 back as a counter and would have been ok with that, so we could have pushed a little lower in hindsight. This is, however, an outstanding result and will benefit us immensely. We didn’t want to move, so this was a great result in that sense too.
My advice is to know your market well and present the facts in a straightforward manner - the market has changed and if that’s the case in your area, similar research may help.
Thank you for coming to my TED talk. I might just buy a flat white today to celebrate. Happy to answer any other questions - this is just my experience, YMMV.
We were rebuffed earlier this year when we went to our landlord asking for a permanent rent reduction - they offered $10 off our existing rent of $530 p/w IF we signed on for 12 months.
Needless to say that was a hard pass from us. We decided to wait until late in the year for the market to get worse. In a spot of luck, one of the exact same units came on the market around the corner and has sat empty, originally at $550, and now at $500 with no takers.
Pre-work: I assessed places in the neighbourhood, right across the suburb and the one next door. Thanks to KoalaData extension on Domain I was able to keep a close eye on time on market and price drops.
Last week I called around agents asking about places within the block. I confirmed availability and whether the owner was open to offers, and how low they might go. All the properties were open to offers, with a 3 bed willing to drop to $550 the biggest deal - and only a few doors down.
The email: we had aimed for the heart strings but this time we went for the purse strings. I made sure our case was clear and calculated the loss they’d face with us moving. I made it clear there was a high chance of us moving and by adding the vacancy lengths for other properties I was able to support the likelihood they’d be out of pocket more than the cost of reducing the rent. I didn’t offer to sign on for another year, I just paid out the reality of the situation.
Here’s the email, with addresses removed:
Dear [property manager],
Thank you for speaking with me last week. As discussed, I'm writing to request an ongoing reduction to the rent for [our property]. We previously requested a reduction in May, and were offered a $10 reduction with a 12-month contract, which we declined as this offered us little relief.
The rental market has changed considerably since our last request, and [info about our situation]. In light of our need to reduce costs, and the new realities of the rental market, we now believe a new rental rate is appropriate for this property.
We believe a new rate of $480 p/week is reasonable - based on the following properties:
[Property 1]. This is exactly the same unit as this one in the same complex, more modern, with some appliances supplied.
Rent: $500 P/W
Day on market: On market 26 days at $500 P/W, 103 days at $550 P/W. Owners are open to a lower offer.
[Property 2]. Two bedroom house with modern bathrooms and air conditioning.
Rent: $480 P/W
Days on market: one year.
[Property 3]. A three bedroom house, older but partially refurbished.
Rent: $590 P/W advertised.
Days on market: on market 19 days at $590 P/W, 189 days in total. aowners are happy to accept $550 P/W
[Property 4, slightly further away]: Modern, light-filled two bedroom house with two bathrooms.
Rent: $525 P/W advertised. Happy to accept lower offers
Days on market: on market 60 days at $525 P/W, 144 days at $550 P/W
These are just a few examples that demonstrate the market has shifted, including one that is the same unit as this one. We have also discussed with fellow residents within [our suburb] to confirm the current market - the vast majority have negotiated reductions this year.
A rental rate of $480 P/W is significantly less than the costs involved should we vacate this property. If this property stays empty for 4 weeks it would cost our landlords $2,120 + leasing fee at the current rent at least. It is likely the property would be empty for more than four weeks, so this is a best-case scenario. A reduction of $50 P/W would cost $2,600 annually by comparison.
If we cannot secure a reasonable reduction in rent to bring the property in line with the current rental market, we may need to look at other options at today's market rate.
Kind regards,
[my name]
A week later we received confirmation that the landlord was accepting our proposal, and we’re asked if we want to sign on for 12 months - but that’s optional.
To be honest I expected to get $500 back as a counter and would have been ok with that, so we could have pushed a little lower in hindsight. This is, however, an outstanding result and will benefit us immensely. We didn’t want to move, so this was a great result in that sense too.
My advice is to know your market well and present the facts in a straightforward manner - the market has changed and if that’s the case in your area, similar research may help.
Thank you for coming to my TED talk. I might just buy a flat white today to celebrate. Happy to answer any other questions - this is just my experience, YMMV.
