How to negotiate a rent increase with your landlord?

Mahesh Singhal pays higher rent each year to live in the same residence in North Delhi. Despite living in the same property for almost seven years, he has yet to find a method to bargain with his landlord, who hikes the monthly rent by 10% every year as is customary.

Almost all renters, like Mahesh, are forced to deal with the aforementioned issue. Although monthly rent is often increased by up to 10% every year, some renters are lucky to receive a lesser or non-existent rise. Would this imply that their ability to negotiate provides them with an advantage over others? Let us investigate.

Change your thinking.

To begin with, a renter should never assume that the rent offered by the landlord is the final cost. There is always space for bargaining. According to specialists, a renter should recognise that some bargaining strategies are worth pursuing regardless of market conditions.

Meeta Mazumdar, a resident of South Delhi’s Anand Niketan, has been paying the same rent for the past three years. This indicates that there are certain approaches you may take to persuade your landlord not to raise your monthly rent. Here are some ideas from real estate professionals:

Check your payment history.

“Seek to clarify the payment history and prove that you have always paid the rent on time or before the due date,” says Sachin Gupta of Greater Noida-based Vita Bella Consultants Pvt Ltd. At the same time, tell the landlord that you have never requested apartment maintenance before and have always handled it on your own.”

Demonstrate your worth.

Demonstrate to your landlord that you have always been a responsible renter. “All landlords enjoy well-maintained residences,” says Prashant Nath, Associate Vice President of Veez Capital, a financial services firm located in Delhi. You might try to get a rent reduction by maintaining the rental unit as lovely as possible. This happens because a landlord’s remodelling costs may exceed his or her rental profits.”

Share expenses with the landlord.

“Ask the landlord to pay for apartment upkeep,” Nath advises. This can assist to reduce the tenant’s overarching monthly expenses. Furthermore, rather than dealing with brokers through intermediaries, you should try to see the landlord in person. “You can save Rs 5,000-12,000 yearly just by sitting down and haggling,” Nath claims.

Lease extension

“Ask the landlord to prolong the lease for 2-3 years instead of one year,” recommends Sachin Gupta. This can assist to alleviate the landlord’s long-term rental concerns.

Is it necessary to raise the rent every year?

Rent increases are not required. It is entirely up to the landlord. Tenants should also consider the condition before signing the lease. Legally, According to the Maharashtra Rent Control Act, landlords can increase the rent by 4% per year, whereas according to the Delhi Rent Control Act, which also encompasses properties with a rental value of up to Rs 3,500, a landlord can only increase the rent by 10% after three years from the date the premises are let out.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.