With tenants across Australia battling financial hardship because of the coronavirus crisis, negotiating a rent freeze or reduction is becoming commonplace.
But how should tenants go about it, exactly? Is a different approach needed when dealing with a private landlord who manages their own property, as opposed to a property manager, employed to do the job for an owner? We asked some experts on both sides of the fence.
Vanessa Giannos, a Sydney-based HR executive who self-manages investment properties in Queensland and New South Wales, shared her advice for tenants wanting to negotiate with their private landlord.
There are different ways to approach negotiating a rent freeze when dealing with a private landlord versus a property manager. Picture: Getty
A tenant needs to be able to clearly explain their situation, so they should make notes about what’s happened and what they’re going to ask for, Ms Giannos explained.
“Exactly what has occurred and what is your situation? Why do you need a break? Is it because of a reduction in hours or redundancy?”, she said. It’s important to have all the facts at hand.
Landlords are also suffering as a result of the economic downturn, so tenants should set reasonable expectations.
“Whilst I am lucky to be in a position where I am not over-leveraged, many landlords are. So work out the minimum you need,” Ms Giannos said.
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Don’t rely on email, but rather ring the landlord, at the very least.
“As a private landlord, I would expect tenants to get on a video conference to discuss [negotiating a change],” Ms Giannos said.
Finn Simpson from Belle Property in Sydney said tenants with a property manager need to be organised, as agencies are dealing with many similar requests.
Organisation is key when dealing with a property manager. Picture: realestate.com.au/rent
First, pick up the phone and call the property manager to explain the situation. Be up front and honest, Mr Simpson said.
“Follow up the call with a concise email, attaching supporting documentation. The more information a tenant can provide, the better, as it will help the property manager communicate the tenant’s case effectively to the landlord,” Mr Simpson explained.
Mr Simpson said tenants should try to understand that many people, including landlords, are in the same tough situation they are.
“Put yourself in the landlord’s shoes. They may have lost work, too and are relying on this [rental] income.”
The property manager is likely snowed under dealing with many requests of the same nature, so follow up, to make sure you stay top of mind, Mr Simpson suggested.
There are advantages and disadvantages to dealing with a private landlord in the current environment. Here’s a breakdown.
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Dealing directly with a landlord has benefits:
But private landlord situations aren’t always easy:
There are pros and cons to dealing with both private landlords and property managers. Picture: realestate.com.au/rent
On the flip side, there are some pros and cons of dealing with a property manager, too.
Dealing with a property manager has benefits:
Although it won’t always go smoothly:
Source of the original article: https://www.realestate.com.au/advice/negotiating-rent-freezes-with-private-landlords-versus-property-managers/
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