Negotiating rent from the driver's seat
It’s last call for negotiating the lowest rent possible in years! Seriously, while year-over-year numbers are still lower across the GTA, we are seeing the first signs of an uptick in month-to-month changes in 2021. The province of Ontario is on the road to recovery in its battle against COVID-19 but as more people get vaccinated and restrictions start to ease, prices will start to rise again.
This is definitely a conversation with your landlord that can be abrupt and uncomfortable if you don’t have a game plan going in other than to ask for a decrease but that’s why we’re here, to help you sound like you’ve done this before!
Know your market
Your landlord will have no choice but to respect -- and might even appreciate -- you doing your own homework. For example, rental prices in Toronto are down 14.7 percent from last May to this. Look at the first step towards lowering your rent as an elevator pitch and be ready to hit them with the facts. Look for places similar to yours in terms of location and square footage to emphasize your point on what the going rate is now. Go into the first conversation expecting your landlord to find ways to disagree and say no, have the mindset that you are going to change their mind.
Be real about Plan B
If initial conversations about reducing your rent don’t work, don’t give up yet. If reducing how much you’re paying by anywhere from 10-25 percent means that much to you, show your landlord you’re willing to move to make it happen. This would bring to surface the fact that if the landlord now has to find a new tenant, they’ll have to do so at current market prices. It would also mean the possibility of the landlord having to pay the realtor an entire month’s worth of rent as commission.
Landlords want certainty
Play to your strengths. Just like anyone in these times, landlords are looking for some level of certainty and assuredness. Have you been the type of tenant that would be difficult to replace? Are you able to commit to a longer term? Was your job un-impacted by COVID-19? Are you able to pre-pay more now to save in the long run? That type of stability could be music to your landlord’s ears so make sure to play them up if they apply to you.
Now that you know your hand, be bold in playing it. You obviously want to go about this in a civil manner that encourages the landlord to want to keep you around, but know that these rare market conditions mean that you have an advantage in negotiations. Maintain that poker face and have no fear if they try to call your bluff!
Get a 2.10% savings rate when you open your first Savings and Chequing Accounts. Plus, you could earn $150*.
*The New Client 2.10% Interest Rate and $150 Cash Bonus Bundle Offer (the "Offer") is available to new Tangerine Clients who: (a) have a Client Number created between November 24, 2020 and July 31, 2021, (b) become a Tangerine Client using the Promo Code “EARNMORE”, (c) open an Applicable Savings Account within 30 days of the date their Client Number was created, and (d) open a Tangerine Chequing Account within 30 days of the date their Client Number was created (collectively the “Offer Qualifying Conditions”). The 2.10% Promotional Rate will apply to deposits made to an Eligible Client’s Applicable Savings Account(s) for 153 days (5 months) beginning on the date all Offer Qualifying Conditions have been met, to a maximum of $1,000,000 (in the currency of the Applicable Account) per Applicable Savings Account Type (for deposits to registered Applicable Savings Accounts made through a T2033 form, please see the full Offer Terms and Conditions). The Promotional Rate is an annualized rate, calculated daily and paid monthly. To be eligible for the $150 Cash Bonus, in addition to meeting all Offer Qualifying Conditions, an Eligible Client must switch their eligible payroll direct deposit for at least 3 consecutive months and must have the first payroll direct deposit received in their Tangerine Chequing Account within 60 days of Chequing Account opening. Limit of one (1) Cash Bonus per Primary Account Holder. The Offer is only applicable to Accounts where the Eligible Client is the Primary Account Holder. Offer is not transferable and can’t be combined with other promotional savings rate offers or chequing cash bonus offers. Full Offer Terms and Conditions, including definitions of any capitalized terms and a list of eligible payroll direct deposits, are available here. Offer may be changed, extended or cancelled without notice.