logo
Dubai icon
icon Dubai icon
News & Insights
8 ways tenants can negotiate with landlords and real estate agents to lower rents
May 30, 2023
8 ways tenants can negotiate with landlords and real estate agents to lower rents Dubai
By   Waheed Abbas, Khaleej Times
  • City News
  • Tenants
  • Rents
  • Rent Trends
Abstract: Strategic communication is key for tenants to convince their landlord or property management company to lower their rent.

As rents have been rising throughout the post-pandemic period in the UAE, tenants have been forced to shell out more money.

 

According to Property Finder's first quarter report, rents in Dubai jumped by 18 per cent compared to the same period last year. And average rental prices in Abu Dhabi rose by 7 per cent in the first quarter of 2023 compared to the first quarter of 2022.

 

Looking ahead, industry executives say the upward trend in rents is likely to continue, albeit at a slightly slower pace, as demand continues to grow, driven by the influx of foreigners into the country.

 

To meet this challenge, tenants in the UAE will need to take certain measures that can provide them with some cushion against rising rents.

 

Callum Radford, Secondary Market Sales Manager at Colliers International Residential Brokerage, advises tenants to use effective strategies and to negotiate with a reason to get a fair outcome.

 

He stresses that strategic communication is key for tenants to persuade their landlord or property management company to reduce rents, and that their case can be further strengthened by citing current market conditions, as well as the economic factors affecting rents, providing evidence of a positive payment history and demonstrating a long-term commitment to the property.

8 ways tenants can negotiate with landlords and real estate agents to lower rents 

"Conducting thorough market research is essential to identify comparable properties. Building a positive relationship with the landlord or property management company through open communication is vital. Enhanced negotiations can be achieved by presenting sound reasons, such as changes in property conditions or market conditions. The Rent Index Calculator on the Dubai Rest app is another key tool for tenants in Dubai to prevent rent spikes and ensure compliance with regulated rent increases," says Redford.

 

Ayman Youssef, managing director of Coldwell Banker, said tenants should double check any clauses in their lease agreement relating to rent increases, as the contract may specify the frequency and percentage of rent increases allowed.

 

"If your landlord intends to increase the rent, you can use the Rera (Real Estate Regulatory Authority) rent calculator to determine the maximum increase allowed. The calculator will take into account factors such as the type of property, its location and the number of years since the last rent increase. By entering these details, the calculator will provide the maximum percentage increase allowed," he says.

 

Here are eight tips for negotiating rent increases. By following these tips, tenants can negotiate rent increases with confidence and increase their chances of a favourable outcome.

 

Use the Rent Index Calculator: Take advantage of the Dubai Real Estate Regulatory Authority's (Rera) Rent Index Calculator, which can help prevent unreasonable rent increases.

 

Check with your neighbours: Tenants can also check with other tenants in the building and their neighbours to determine if and to what extent their rents have been increased. This will provide a guide for tenants to better negotiate rent increases.

 

Research the market: Gather information on current rental market trends and average rates to understand the context in which you are negotiating.

 

Highlight your track record: Highlight your positive history as a tenant and showcase your track record of cheque clearing and responsible property maintenance.

 

Provide valid reasons: Present valid reasons for reconsidering a rent increase, such as changes in your financial situation or the condition of the property.

 

Positive relationships: Approach your landlord or property management company politely and professionally to raise your concerns.

 

Maintain the property: It is important to maintain a positive relationship with the landlord or property management company throughout the negotiation process.

 

You can also argue that you have taken good care of the property and respected the rules and regulations. This can help build trust and increase the chances of a favourable negotiation.

icon
+87
icon
 
icon icon
icon
banner
8 ways tenants can negotiate with landlords and real estate agents to lower rents
icon
icon
icon
icon