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How to Negotiate with the Home Owner during the Increase of Rent?

In India, rental values of properties are going one way and that is up. This is felt as a major burden for middle-class families who stay as tenants. Along with other obligations at home, tenants see the rental increase as a potential threat to their financial abilities. Usually, owners in various cities across the country, increase the rent of a property by up to 10% each year. But this margin can be negotiated if the tenant is well aware and smart in dealing with people.  

Legally, the landlord has the right to revise the rent with proper notice delivered to the tenant according to the Transfer of the Property Act 1882, section 106. Still, as a tenant, you can induce a negotiation process without disrupting the relationship with the owner. Here are some tips on how to negotiate with a homeowner for raise in monthly rentals:

Be aware:

As a tenant, you should know about the average rental values in the locality. Talk to people in the neighbourhood, or just browse online in listing and portals to get the normal rental rates in the area. If the owner quotes a rate that is way more than the average rental value in the area, you can negotiate and state the same subtly to bring down the rise in monthly rental.

Before I moved into one of the flats in Pallavaram Thoraipakkam Road as a tenant, I enquired about the rental rates in other projects in that area to arrive at an average probable rent that I would be paying.

Identify the property value:

Even before starting the negotiation or talking about the yearly rental rise, you should know the worth of the property. As a tenant, you might feel that the rent they are demanding is too much and at that time you can state that there are other choices available to you. This can make the owner to consider a negotiation process to not lose a prospective tenant.

Like stated before, knowing guidelines and laws for rental properties can come in handy. If the home was occupied by a tenant in the past, the owner might expect the previously incurred rent or slightly more than that for you.

Be smart and offer solutions:

Instead of asking for a decrease in rent for nothing, you can always exchange something for return. For instance, if you don’t need the parking space, you can give up the amenity for someone else for rent, which would go to the landlord. When the owner is not ready to budge in for any of the requests, then you can ask for home improvements like a new painting or minor upgrades in the space when you move in. This can give you the value of the money you are ready to shed out for rent.

Extend the rental period to avail reductions:

Propose to the owner that you are planning to stay as a tenant for a long time. Most of the rental agreements are drawn up for a single year and you can propose for an extension, so that the property would not remain vacant for a long time. You can do this and ask for a reduction in rent if you are not planning on moving to a new place for the next few years.

At last, be a good tenant:


Have a good track record with the owner. Be prompt on the payment of your rent and mention this good rapport while bargaining for the increase in rent. For smart and conscious owners, a good tenant is better than losing a meagre amount of rent. Keep the home in very good condition and maintain it like your own home. Offer to share the monthly maintenance expenses with the owner if you can. Also, do not bargain too much for the security advance deposit when you move into the home. 
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