More and more people are deciding to rent instead of buy as house prices fall. But many aren't aware of the negotiating power they have when they're looking for a rental property not least because the latest tale the property bulls are flogging is the idea that a surge in demand from would-be first time buyers "forced" to rent will be great news for landlords.
But the reality is that while the number of potential renters has risen, so has the number of properties available. "We have noticed a huge increase in stock in the last three to four months," says Tim Hyatt of estate agent Knight Frank, partly driven by people trying to rent out their homes rather than sell in the current market.
In London this means rents have dropped by 20% as landlords "are forced to slash prices because of oversupply", says the Evening Standard. And due to the credit crunch, landlords have much higher mortgage bills to pay each month, meaning they are increasingly keen to find tenants to avoid expensive void' periods. So here are some tips for would-be tenants hoping to slash their rental bill.
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1. Know your market
Find out what similar properties in the area cost to rent, suggests Laura Starkey on Fool.co.uk. This is easier said than done the only way to do it is to check the advertised price on other properties, which means you don't know the final agreed rental rate. So although it can be helpful in telling you if a property is very overpriced (ie, much higher than the advertised rents of other properties), it isn't much use beyond that.
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2. Sell yourself
"What all landlords want is consistent, decent, quiet tenants," says Matt Pilkington of Shelter in The Times. So let them know that you fit the bill. Tell them about your qualifications and anything else you think shows how responsible you are. Also hand over references from employers to show what an upstanding person you are. This will impress landlords and make them want you as tenants, putting you in a stronger position to start negotiating.
3. Consider signing a longer lease
"Finding good tenants takes up landlords' time and money," says Helen Monks in The Times something they want to avoid. The spectre of a property standing empty while a new tenant is found will send a shiver down a landlord's spine. So if you're sure you want to stay in the area for a long time, then offer to sign a longer lease in return for a rent reduction and a guarantee that the rent won't rise above inflation for the duration. Offer to stay for two or three years and most landlords will leap at the chance.
4. Throw in free labour
Offer to paint the flat or tidy up and maintain the garden in return for cheaper rent. Point out how much money you'll save the landlord not to mention the improvement to the property and you stand a good chance of getting a rent reduction.
5. Just negotiate
Too many people agree to pay the advertised rent. "Landlords and estate agents rarely expect to get 100% of what they ask for so why not play their game?" says Starkey. As long as you don't take it too far offering 30% less is probably a little extreme by employing the techniques above, you should be able to get between 15%-20% off. And remember, if they say no, you can just raise your offer.
