How To Negotiate A Rent Decrease With Your Landlord During A Recession

Recessions are difficult. A tenant may have accepted a lease arrangement in good faith with the expectation of continued income, but then find circumstances change. Rent that once was easy to pay can suddenly become difficult, or even impossible, to pay. As a result, many renters consider asking for a rent decrease in such trying conditions.

Considering asking for a rent decrease is not the same as asking for or getting a rent decrease. It takes a combination of honesty, planning, courage and desperation to be able to successfully negotiate a rent reduction. If you need to reduce your rent, there are some essential tips on how to approach your landlord with your request.

Landlords often find that it is preferable to grant a rent decrease instead of forcing an existing tenant to move and then to incur the expense of finding a replacement tenant. Tenants who are able to negotiate a rent decrease also are spared the time and expense of looking at other rentals.

While no landlord wants to hear a tenant say that they are unable to pay the rent as previously negotiated, during extended economic recessions, landlords often are willing to be flexible for existing tenants. If you are unable to pay your rent, it is preferable to be upfront with your landlord, so be prepared to approach them as soon as you are aware of your situation.

When meeting with your landlord, explain why your income has dropped. Your employer may have cut your hours down, reduced your wages, or both. Avoid being emotional about the situation; discuss this in a logical manner with your landlord. Experienced landlords will have weathered economic downturns before. The chances are good that they will understand and perhaps even appreciate you coming to them as soon as you are aware of your decreased income.

Particularly during lengthy recessions, it may be useful for you to ask about rental rates for similar units in your area. Providing current rental rate comparisons to your landlord may give you an additional bargaining chip.

If your research shows that other tenants in your area are paying lower rates for similar units, this can be helpful in negotiating a lower rent. Landlords will generally desire to keep some income coming in rather than losing all of the income from your rental unit.

Be sure to negotiate directly with your landlord. If the complex uses a management company, negotiate with the highest ranking person available to you. Have proof available as to the reason your income is reduced and be sure to remind them that you have always paid your rent on time in the past.

The Truth About Landlord Protection Services

Anyone who is contemplating renting out their home or other property needs to be well-informed about landlord protection services. These services assist landlords in determining everything there is to know about their rights and those of their tenants. Landlords work hand-in-hand with their service of choice to obtain accurate background checks on potential tenants. Doing so makes it much more difficult to rent to unsavory characters that may have had leasing problems in the past.

As most landlords are aware, crimes against their properties are on the rise. That being said, it is of the utmost importance that every landlord determines whom exactly they are renting to. By knowing the true identity of a renter before signing a lease makes it much less likely that the wrong person will be occupying their property. Careful and thorough screening is a must and it generally guarantees that the landlord’s rights and property will be somewhat protected.

Tenant screening is one of the most important aspects of landlord protection services. It needs to be done immediately after a potential tenant has completed the proper paperwork and has turned in the rental application. The information gathered during the screening process will be fundamental in the landlord’s decision as to whether to rent or not to rent to a potential tenant. This screening process takes an in-depth look at the applicant’s credit and criminal background and reports back to the landlord any adverse actions that may have occurred in the past. Companies specializing in helping landlords avoid future court proceedings are easily found online and each offers its own unique services.

Landlords who decide to use an online service to help them in their rental arrangements will find that it is well worth their time and effort. Once the information has been entered regarding a potential renter, background information will be available almost immediately. Doing it themselves takes much longer and it is often difficult to get the information needed to determine if a person is a good credit risk.

The best advantage that landlord protection services offers is that upfront verification of the potential renter is done by the company. This means that there is less chance for lengthy and costly legal proceedings down the line. And if the renter turns out to be less than desirable, the company will be there for the landlord for advice and assistance whenever needed. These services are absolutely essential for anyone who owns rental property and should be seriously considered before signing any type of leasing agreement.

Tips on Being a Better Landlord – Get Started by Learning From Others

When I bought my first property and placed my first tenant…I was a complete disaster! No point in beating around the bush right! As a real estate investor, I learned just enough to be dangerous and I certainly was. I was dangerous to my bottom line and dangerous to my future earnings. By not being diligent with the learning process and making sure I had all the information I needed in place, I was jeopardizing my families investment in that property. Here are some tips that I learned the hard way and you can learn the easy way! Follow these steps and operating an investment property as the landlord can be made easier and less stressful.

What are the laws in your state or municipality

There are different laws around the country for both landlords and renters and you absolutely must know the laws that pertain to your area. That being said, here is the easiest way to learn those laws. First, contact local property management companies and ask for their guidance with local land lording laws. It may take more than one call, but be proactive and ask for their assistance. Most will be more than happy to answer a few of your top questions. Second, contact local landlords that advertise properties for rent in the local papers. Many times, with an offer to buy them lunch or dinner, a local landlord will spend time telling you how they operate and what they know about local laws. Finally, when you have a better idea of your market place and the local laws, you turn to a local attorney who specializes in representing landlords. They can assist you with the ins and outs of how to operate as a landlord to give yourself the best opportunity for success.

Developing a great lease

Once you have established a better understanding of your local land lording laws, you can also develop your lease. Chances are, if you will ask, other landlords will share their lease with you. Another possibility is that your attorney will already have a lease that they can give you to use. Using a proper lease is the best way to protect yourself when it comes time to collect late rents or possibly move towards dealing with a problem tenant in the legal process. Being clear and precise in your lease is the best way to protect yourself when it comes time to involve the local courts and laws as a landlord. Once you have a great lease, make sure you have a great closing process. Make sure that your tenant not only signs every page of your lease, but it is a good idea to have them sign key parts of the lease where the legal process is laid out. Cover yourself and your tenant to ensure your success.

Create your process

Problems will absolutely occur when you are a landlord. From late rents, evictions, maintenance calls and even maintenance issues that have to be charged back to the tenant. All of these situations will occur to you as a landlord and you must be prepared form the beginning on how you are going to handle each of those situations and be consistent. I suggest you put it in writing and have that process filed with your attorney. Once you have committed it to writing and filed it with your attorney, you have no choice! You must follow that policy. That policy will spell out when a tenant is late, what the repercussions are going to be, when that process moves to the stage of eviction, when the tenant will be notified and again, what the repercussions are going to be. If you will follow the process you lay out, you will be moving in the right direction and the legal process will be easy.

Dealing with evictions

Evictions are one of the few absolutes in the property investment business. If you are going to manage your own properties, then getting over the fact that you will have evictions to deal with is a must. Renters will pay late, they will push the envelope and some know every step to take to play the game of staying in a property for the maximum number of days for the minimum number of dollars. If you have created your lease based on what you learned form other landlords, management companies and your lawyer and created your process for dealing with tenants (and followed that process) then you will have a very good chance of winning the eviction as quick as possible and for the least amount of work and cost.

Moving forward as a landlord

Investing in real estate and choosing to operate as your own landlord both can be very profitable and rewarding. Simply making that decision will not be enough. You must take the time to get educated and prepared to be a good landlord and out your contracts and systems in place. These simple steps will absolutely help you to become a better investor and a better landlord.