It’s time to renegotiate to help get lower rent
With high vacancy rates, landlords may settle for less, experts say
Thanks to the COVID-19 pandemic, tenants in many parts of the country are witnessing something they haven’t seen in years: falling rent prices.
The recession brought about by the virus and governments’ response to it presents an opportunity to negotiate a better place or a better price, if tenants play their cards right, experts say.
Average rent for all property types across the country was $1,723 in December, down 7.1 per cent from a year ago, based on listings on Rentals.ca, which releases a monthly rental report. The report said that average rent for a 55 square meter (592 square feet) one-bedroom apartment fell 6.4 per cent in the final three months of the year, while average rent for a 74 square meter (796 square feet) two-bedroom apartment fell 3.4 per cent.
Geordie Dent, director for the Federation of Metro Tenants’ Associations, notes that rent prices aren’t falling in every city — things are changing quickly with the COVID-19 pandemic, so tenants should research rent prices in their specific area. For instance, stand-alone home rentals are much hotter than condo rentals in Toronto, and thus less likely to have room for negotiation, says Nasma Ali, founder of One Group Toronto Real Estate
But overall, the COVID-19 pandemic has “changed the game tremendously,” shifting power from landlords to tenants, says Dent. This changing power dynamic is what makes it a good opportunity for negotiation, says Suze Cumming, Canadian Director of the Real Estate Negotiation Institute.
When going into a new lease, different landlords may have different priorities: filling a space quickly, or having an easy tenant. Cumming says that can become leverage for the prospective tenant to offer a quick move-in date or to do their own snow removal — in exchange for lower rent.
If you plan to ask for a lower rent rate, Ali says its important to be ready. If asked, present a full credit report, not just the pages with the scores, she says. Have your references on hand, and consider including a letter describing why you will be a good tenant, or explaining the story behind any decline in income or credit.