Negotiate rental escalations like a boss

30 March 2021 | Life Style

Rental increases are, unfortunately, inevitable – even in this downturned market. What many fail to realise is that the tenant does not have to accept whatever percentage upon which the landlord decides. Those who have been reliable tenants may be in a position to negotiate a more manageable escalation.
“The rental market is reflecting negative growth for the first time in years, which puts tenants in a good position if they want to negotiate their rental price with their landlord. The record-low interest rates have made it possible for the repayments on a home loan to be lower than the rent one would pay on the same property. Tenants can use this information as leverage when negotiating against a rental increase,” says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.
However, Goslett warns that a landlord does not need to forgo the increase and may choose not to renew the lease once it has expired.
“At the end of the stipulated period within the lease agreement, the rental agent and/or landlord will need to decide two things: Firstly, whether to renew and secondly, what escalation will apply. It is unlikely that a tenant’s lease will be renewed if they have made late rental payments or have had neighbours or home owners associations (HOAs) complain about their behaviour. It is also unlikely that the lease will be renewed if they have made too many unreasonable demands, have been regularly uncooperative, or have caused damage to the property,” he cautions.

Holding on
On the other hand, tenants who have been reliable and easy to work with will have gained favour with the landlord. Because reliable tenants are difficult to find (especially within the current market), Goslett explains that landlords will want to do what they can to keep these tenants on.
Tenants who hope to establish themselves in a good position with their landlord thereby placing themselves in a good position when it comes to negotiating rental escalations should consider the below recommendations provided by Grant Rea, Rental Specialist at RE/MAX Living:
1. Paying your rent on time and in full (this may mean consistently paying one day before the rent is due) will ensure that all utilities are paid promptly, which may give you leverage to negotiate a lower rental increase.
2. Good communication is key and keeping the agent/landlord informed of any necessary maintenance issues and being flexible with access for repairs, will make you stand out as a reasonable tenant.
3. Be reasonable and understanding that the agent or landlord cannot be obliged to attend to any and every small maintenance item. Sometimes fixing it yourself will aid your cause when negotiating a lower increase.
4. Keeping the property neat, clean, and presentable goes towards establishing you as a good tenant that the landlord will want to keep on. This can help with your negotiations.
5. Keep a record of items you have attended to or improved within the property. Remind the agent or landlord of these without trying to coerce a lower increase.
“Those who are nervous about negotiating their rental increase can reach out to a real estate professional who’ll be able to offer advice and guidance on how to approach the landlord. Those who have already decided not to renew the lease should make the most of the record-low interest rates and start the search for a home to purchase instead of rent,” Goslett concludes.

Similar News

 

Father’s day gift ideas in and around the home

4 days ago - 14 June 2021 | Life Style

Finding the perfect Father’s Day gift can be tricky. To narrow down the search, consider the items that could be used in and around the...

Health hazards in and around the home

1 week ago - 10 June 2021 | Life Style

The pandemic has highlighted just how quickly germs can spread. Though everyone takes the necessary preventative measures when leaving the home, it is important to...

Warm your home with winter décor

3 weeks ago - 28 May 2021 | Life Style

Spending many hours indoors during winter can cause homeowners to start loathing their homes. Though some might consider seasonal decorating unnecessary, changing up a home’s...

Renovating? Consider these tips

3 weeks ago - 27 May 2021 | Life Style

Fixer-upper homes sell for far less than other homes in the same neighbourhood, which means that buyers can get more for their money if they...

Go from for sale to sold in 5 steps

3 weeks ago - 26 May 2021 | Life Style

The real estate market is experiencing high levels of activity within many suburbs across the country. Regardless of whether a seller finds themselves in an...

Get rid of odours in your new home like...

1 month - 19 May 2021 | Life Style

When purchasing a property where the previous owners either smoked or kept pets indoors, buyers need not be concerned about how the home smells, since...

Spotting property investment opportunities early

1 month - 18 May 2021 | Life Style

Lifestyle changes brought about by the pandemic combined with record-low interest rates are likely to lead towards a host of new investment opportunities developing within...

How servitude impacts property values

1 month - 14 May 2021 | Life Style

When searching to purchase a property, most buyers are on high alert for any excuse to hackle down on price. Discovering that a property comes...

Honesty the best policy

1 month - 10 May 2021 | Life Style

Effective communication is a fundamental factor within successful relationships. This is especially true for the relationship between the prospective homebuyer and the real estate professional...

Crucial steps to go from graduate to homeowner

1 month - 05 May 2021 | Life Style

After completing their studies, most graduates will begin their career path and embark on their next stage in life. What many fail to realise is...

Latest News

Are you being overcharged?

16 hours ago | Opinion

Windhoek • Marvin DanielsIt’s been more than a year since Namibia reported its first confirmed Covid-19 positive case in March 2020. Since then, the pandemic...

Charcoal activities unleash large-scale bush...

1 day - 17 June 2021 | Agriculture

Windhoek • [email protected] bush fires allegedly sparked by charcoal burning operations have razed around 35 000 hectares of grassland to the ground across seven farms...

Beatrice, Christine readying for Tokyo

1 day - 17 June 2021 | Sports

Henk Botha, coach of Namibia’s fastest female sprinters Beatrice Masilingi and Christine Mboma, said the athletes are hopeful of reaching their set targets before travelling...

ECDs at schools shut down

1 day - 17 June 2021 | Education

The Ministry of Gender Equality, Poverty Eradication and Social Welfare has temporarily closed early childhood development centres (ECDs) operating within formal school premises countrywide, due...

More vaccination, testing centres on...

1 day - 17 June 2021 | Health

Khomas governor Laura McLeod-Katjirua said additional vaccination and testing centres would be identified in the region in a bid to bring services closer to the...

Watch out for scammers, NamPol...

1 day - 17 June 2021 | Crime

Namibian Police Force (NamPol) spokesperson, Deputy Commissioner Kauna Shikwambi, cautioned government employees to be on the alert for a scam operated by people pretending to...

Melkies tests Tesla in Germany

2 days ago - 16 June 2021 | Business

The founder and owner of LEFA Transportation Services test-drove the future of transportationwhen he cruised around in a Tesla in Germany recently.Melkies Ausiku has long...

Second Online Agriculture Series on...

2 days ago - 16 June 2021 | Agriculture

Bank Windhoek hosts its second Online Agriculture Series on Wednesday and Thursday (23 & 24 June) themed “Innovation and Trends that will shape the future...

NMRC warns against ivermectin use

2 days ago - 16 June 2021 | Health

Namibian Medicines Regulatory Council (NMRC) Registrar, Johannes Gaeseb, said the use of ivermectin in human beings has not yet been registered or granted authorisation in...

Load More