Can I Renegotiate My Lease if the Rent Prices Drop?
The health and vitality of the real estate market determines home sale prices as well as home rental prices. In a robust economy where home prices are soaring, rent prices may increase. However, in an economy where the supply of rental properties exceed demand, renters have a unique opportunity to renegotiate the terms of their rental lease.
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Description
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A rental lease is a contract between a tenant and a landlord that outlines the terms of a rental agreement. The lease establishes the rights of all parties involved and is a legally binding document. If circumstances change, such as a decrease in market rent prices, the tenant may request to renegotiate the lease. Although the tenant and landlord can renegotiate a lease at any time, the landlord reserves the right to approve or deny any changes made to the lease.
Time Frame
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The most effective time to renegotiate the terms of your lease is 30 to 60 days before the lease expires. This will allow a reasonable amount of time for you to secure another unit and for the landlord to find a new tenant if negotiations fail.
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Process
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Approach your landlord with a thorough list of comparable rentals in your area that are asking less than what you currently pay. These properties must be similar in size and amenities. Remind your landlord of the benefits of keeping the same tenant rather than finding and screening a new one. Ask for a decrease in rent that is comparable to the properties you have researched.
Warning
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It is important to note that a landlord has no obligation to renegotiate a new rental amount during the lease term or even when the lease is up for renewal. However, landlords unwilling to negotiate run the risk of losing a tenant as well as being unable to obtain a new one when the rental unit is priced above current rental values.
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References
- Photo Credit concluding a successful deal image by Peter Baxter from Fotolia.com
