reducing monthly rent?

I've been hearing about people contacting their landlords to lower their rents as the market prices are going down. Has anyone tried this? How did it go for you?

Unless your rental agreement is about to expire, there's nothing you can do.

That is not entirely true. Legally there is nothing you can do to _force_ your landlord to lower your rent. However, if the landlord particularly values you as a tenant, has a personal relationship with you, gets some other concession (e.g., changing the terms of the tenancy), or just feels empathetic (say, if you have experienced personal hardship, s/he _might_ agree to lower your rent.

Happened quite a bit during SARS. While I would not get my hopes up, it never hurts to ask...

But then again why should they lower them mid contract, would you be happy for them to increase the rent mid contract if the prices were going up.

The relationship between landlord and tenant is not entirely symmetrical: For instance, if the tenant is experiencing financial hardship, s/he might just default on the tenancy agreement by moving out. Very little chance for the landlord to get the money owed to him/her if the tenant just does not have it (or maybe even leaves Hong Kong). So rather than having to re-let the apartment (especially in the current environment) and trying to collect from the previous tenant, the landlord -out of compassion or rational choice- might decide to lower the rent.

Are the chances of this happening high? No. Has is happened before? Yes.

Very sensible remarks from cd.


I had that experience years ago. Our rent was $27,000 and after the 2-year contract, market price came down and our landlord invited us to continue by decreasing our rent to $23,000. We stayed for another 2 years and during our stay, the market started to go up but our rent remained the same. Although with another invitation from our landlord for the 3rd contract with the rent increased to $33,000 which was less than a few other apartments in the same building which were asking for $38,000 to $40,000 (reason: he said we were good tenant) we did not accept this time and moved to a smaller flat as we don't want to pay that much.

Quite right about the tenant-landlord relationship.

Going back to CD's remarks, asking yr landlord to lower the rent is a different issue from him demanding more money mid-term. That's in fact what the lease is for: yr landlord cannot put the rent up during the lease, it's simply illegal. But he could double or triple it upon next renewal, just because he can. Tenants asking to lower the rent mid-term is simply a request, not a demand that cannot be turned down.

During SARS and the economic recession of 98, it was common for tenants to ask for a lower rent, and widely accepted by landlords who simply wanted to make sure their flats were still providing them with income, rather than have their tenants move to a cheaper flat and have no income at all for a few months.

The arrangements were to everybody's satisfaction, and we could see some of that in the next few months, if people are leaving and tenants become spoiled for choice.

Having said that, anybody read The Standard this morning, about commercial rent still going up? That framing shop in Lyndhurst Terrace moved after the rent went from 39K to 250K!!! Can you believe it?

"Having said that, anybody read The Standard this morning, about commercial rent still going up? That framing shop in Lyndhurst Terrace moved after the rent went from 39K to 250K!!! Can you believe it?"


Yeah, sounds ridiculous! Bet you that landlord's kicking himself after the shop owner left.

I am facing a similar situation -- I would like to reduce the rent of my flat, as my freelance income is really going down -- mainly since almost immediately after I moved in (September). I didn't move (to a more expensive place) because I wanted to, but because the landlady of my previous flat wanted the place for her neice, which turned out to be true. Anyway, since 2004, she had the legal right, darnit, as I was very happy there. Not so here!


The landlord has been totally unresponsive -- he has answered NO emails, not even a registered letter -- and there are SO many things wrong with this flat, which could only be seen AFTER moving in, but for which he is entirely responsible for fixing. I didn't even have working aircons for the first three weeks in the summer! Replacing two of them, eventually, was the ONLY thing he did to tackle the problems of this flat. And when, on the advice of a lawyer, I deducted a reasonable amount from the next month's rent (suggested by a property agent) for the lack of airconditioning -- he (a lawyer himself) immediately instructed solicitors to send me a warning letter about not paying the rent in full... and threatening legal action. I had meanwhile sent him the next month's rental -- but in three weeks, I have not received any receipt for even that payment. So I feel I am quite within my rights to withhold payment of the NEXT month's rent, as I have no way to prove I have paid ANY rent in the past two months. I believe he is legally obliged to provide rental receipts -- isn't he?


As I have said, many problems of this flat could only be detected AFTER moving in. But I have wisely called in the relevant government departments to inspect -- the EMSD, the Water Supplies Department, and the FEHD. At least two have so far confirmed I am right, and the landlord is responsible to make amends. But given his obvious insouciance, his non-responsiveness, and clear objection to having any deduction from the rent if I pay for the "fixes", it seems unlikely that we will ever have a relationship where I could even ASK for a reduction in the (already over-priced) rental.


In fact, while it was utter hell to move out of my old apartment (just three floors above) to this place -- since my home is also my office -- and I had absolutely NO desire to repeat the horrors for at least another 2-3 years, I am now pretty convinced that I will be forced to once more look for a place to live, in just over nine months time.


As for getting a reduction in the rent -- I'll be lucky if I can (legally) force the landlord to even make the place "liveable" with THIS rent. Once he sees the WSD is suggesting he replace all the rusty and corroded iron water pipes from the 26th floor down to this 14th floor apartment, and contemplates the cost, he will only be thinking of how he can jack UP the rental.


I guess I should be thankful that he can't do that -- at least for the next nine months....


In fairness, I should say that in nearly 20 years, this is the worst landlord experience I have had here -- my last landlady (who DID agree to reduce the rental during SARS) was really decent. I even have a "testimonial" from her that I was a good tenant, with very few "complaints" about things which needed to be fixed -- which I intend to use, if things with my current landlord get really unpleasant and we end up in court....



-- Kinabalu.

As usual, it depends on your relationship with your landlord, and the term (in months) still outstanding. If you were lucky enough to find a good landlord you may as well approach them.


Don't enter into the conversation with the fact the market is coming down and demand it be lowered but start off by saying tough times are ahead for everyone and that you would prefer to stay in the house and hoped to sign a NEW CONTRACT, extending the term to a 12+2 / 2 year term as per normal with a reduction.


The other play is if your term is due for renewal over the next few months say 2-3, then I would wait and opt for both a reduction and shorter term 6+2/8+2 /2yr term.


If you run shorter terms (which I have due to the market situation) you can renegotiate lower monthly rent in shorter gaps. For instance, they were asking $60K for our house, we played 3 houses including our previous landlord against each other and ended up with $45K/m and a 7+2 term. Next April, we will go back and negotiate down to $30K/m likely and if we feel the market has hit bottom will lock in for a longer term.


If they want to stay at $35K/m will go for another 7+2 month play!


Note using short term min. lease periods is also to your advantage if you loose your job or relocate as the company looking at you has less to pay out and may even better your position for consideration.