House rentals form a big component of your salary, and of course, you can’t default on them. If you have no immediate plans to buy a house and have chosen ‘rent’ in the ‘buying vs renting’ decision, then be prepared for this monthly recurring expense.
To begin with, renting a house is a very convenient option for people who may want to move to a new location because of connectivity, would want a bigger house, or simply want to escape! But, do remember, when you stay in a rented house, there is a yearly increase in rent of a minimum 10%, mostly done during the renewal of the rental agreement. However, the positive to this decision is that House Rental Allowance (HRA) is a part of most people’s salary. Under rule 2A of the Income Tax Rules (ITR) 1962, the HRA salary component is not entirely taxable and one can claim tax benefits on HRA.
Is too much money outflow haunting you? Struggling with yearly rent increases? This guide walks you through how to choose a property on rent and practical negotiation tips to help you maintain your dream home while keeping your rental expenses in check. Read on for actionable advice!
Things to focus while negotiating rent with landlord
While choosing a rental property, there are some tips that you should know so that your negotiation with the landlord is successful and you get to stay in your dream rental home.
Rule 1: Start early with your house hunting process
When you are house hunting for rent, always zero in on at least three to four options. As a rule, do not settle down for the rent that the broker or the landlord tells you right at first. There is always scope for negotiation on this figure, and you must exercise that option.
In the words of Chris Voss, author of Never Split the Difference: Negotiating As If Your Life Depended On It, “Negotiation is not an act of battle; it’s a process of discovery. The goal is to uncover as much information as possible.”
If you are looking for a house on rent, start the process at least three to four months beforehand so that you reach up to what you want. Not doing enough market study will make you desperate and put you in a weak position when it comes to negotiation.
Rule 2: Do proper market study
When you are scouting for a property on rent, study the location of your interest and the rent commanded for the various configurations and property types in the area.
Remember, even the different areas in a location may ask for different rents based on the connectivity, the basic facilities present around, the people profile staying around, etc.
Rents will differ for a 1 BHK and a 1.5 BHK in the same building. There will be a difference in rent for a property with parking and one without parking. There will also be differences in rent for a standalone property and a property in a gated community, even if they are located opposite to each other in a particular area.
“Take the case of two properties in Seawoods, Navi Mumbai. One is a standalone building that is more than 20 years old with limited amenities like a swimming pool, a basic gym, a tennis court, and a small kids play garden. In February 2025, it was commanding a rent of around Rs 35,000 for an unfurnished 2 BHK apartment. On the other hand, a gated community that has been constructed right adjacent to the railway station standing opposite to this standalone property commands almost three times of the rent for a similar area 2 BHK only because of the brand name, the age of the property, and the 50+ amenities it offers,” says Jay Virani, a broker based out of Navi Mumbai.
Rule 3: Take help from property consultants and brokers
Try talking to people staying in the project you have zeroed in on to understand the pros and cons of staying there and the rental range that exists. This can give you a starting point when you negotiate with the landlord. It is recommended to go with reputed brokers, especially when you are looking for rent in places that you are not familiar with. You can also check on property listing websites like Housing.com where we give you an approximate average rent that a place commands across configurations—1, 2, 3 BHK, villa, etc.—and also advertise verified properties for rent.
Rule 4: Know things covered under rent
Know what you are paying for—Are the fixtures of the house part of the deal? If the property you are exploring has a clubhouse facility, have a detailed discussion with the owner on if the tenant can use this facility and if it is included in the rent or if this is only restricted to owners. This helps in negotiation as you wouldn’t want to pay a premium if you, as a tenant, would not be allowed access to the services!
Some societies charge landlords 10% as maintenance charge that is passed on to the tenants. In addition to this, there have been complaints where the tenants have been asked to pay
- convenience fee for document verification before moving into society complex
- weekend-moving fee for shifting into the society during weekends
- to use for amenities if they want to play during evening or morning time when most people use it
Getting clarity on such fees will help the tenant make an informed decision.
Rule 5: Ask for more facilities instead of negotiating rent
When you are in a situation where the landlord is stubborn on the rental pricing, make a counter offer that he may not be able to refuse. You may agree to the price he asks but also ask for minor modifications to the house like adding a mosquito net to the windows, a safety door, or even converting the Indian toilet to a western one to make it user-friendly. This may result in an investment of a few thousand by the landlord but will provide comfortable living and value for money for you.
Rule 6: Be polite when you negotiate
While you may not agree with the rate that the landlord is quoting, be polite when you put across your point. It will go against the tenant in case of any impolite behaviour as the landlord may judge him and decide on renting the property at all.
Rule 7: Offer value added services to the landlord
You can barter value added services to the landlord in exchange of lower rent. For instance, you can offer to maintain the garden of the landlord, get the house painted by spending your money etc.
Rule 8: Indicate to the landlord that you have choices
It’s always recommended to evaluate 2-3 options so that you have an idea of what to expect for what money. And use this knowledge when you negotiate with the landlord. Indicate to the landlord that you are evaluating more properties that can be potentially rented and that if he agrees to what you suggest, you may prioritise his property over others. You can also explain to the landlord the basis on which you are asking for a low rent by comparing with properties in the vicinity which may offer more amenities/facilities at lower rents.
Rule 9: Do not show to the landlord, even if you like the property very much
Finally, it is also a good idea to not be following up with the landlord as this will show that you want the house badly. Allow the landlord to think over and after a few days, persuade again.
While you may follow the above mentioned rules, also know when you should stop to negotiate. In rare cases, there is a chance that on hard negotiation, the deal may fall out. So, if you are indulging in one, be prepared for this situation too.
Rule 10: Justify the rent you want to pay
While landlords would have a reason on the rent that they demand, any rent reduction if having a justification will be accepted. For instance, any job loss or financial problem etc. can be reasons based on which you can negotiate with the owner. You can make a deal on increasing the rent after the first term period that will help both of you.
Challenges faced by existing tenants on increase in rent
Surprise increase in rents for existing tenants is a big issue that forces people to move out of the rented apartment.
- According to a redditor’s account, “Recently, my landlord informed me that they will be increasing the rent for my 2 BHK apartment by a staggering 60%, which is far beyond the 5% increase allowed in our rental agreement. This is a huge jump from the current rent of Rs 21,000 to Rs 34,000 per month. Now we have no option other than moving out, I guess.”
- Another redditor account mentioned, “I was paying Rs 27,000, and the moment I moved out—the landlord gave the same place for Rs 45,000. It was just my luck he did not increase my rent while I was there. ‘Market conditions’ seem to be the excuse. My friend staying in the same building was not so lucky, from Rs 27,000 it went to Rs 33,000 in 3 months and then he again increased it to Rs 38,000. My friend has bought an apartment—he is just waiting to get a handover so that he can get out of this practice of increasing rent every 3 months.”
5 key points to focus on while negotiating rent for an existing landlord
1. Timely payment
Stress on the fact that you have been consistent with paying the monthly rent and you have never defaulted on them in the past (you may show rental receipts for the same as proof).
2. Hassle-free tenant
Point out that you have maintained the house neatly and have been a responsible tenant in the society with no complaint against you. The landlord can be at peace when he is having a no-nonsense tenant who pays rent on time and doesn’t create problems for the landlord and the society.
3. Go for a longer tenure
In case the landlord is interested in increasing the rent, opt for a longer period in the rental agreement. For instance, you can renew the new rent for a period of three years instead of another 11 months.
4. Maintain status quo
Mention that if you (the tenant) vacate, the landlord would have to spend almost a month’s rent on redoing the house like painting, repair works, etc. before giving it to a new tenant. Instead, he can maintain rent at status quo or increase after a certain year period, and can postpone the painting touch-ups that the house may necessarily not need at that point of time.
5. Agree to sublet
If the house that you have rented is huge, you may take permission from the landlord and sublet the house. This way, you will be able to match up to the rental costs if there is an increase.
Things to be careful about
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No registration
As per a reddit account, “My landlord had given me a 1 BHK for Rs 6,500. After 5 years, he increased the rent to Rs 9,000. I asked him for a PAN card and told him that if the rent was Rs 8,200, then no PAN card was needed. He agreed to Rs 8,200 and I stayed there for another 3 years. It was a prime property and I was a good tenant. We were always on good terms. The agreement had expired after the first year itself and never renewed.”
In this case, while negotiations have been done by the tenant, there are risks of absence of PAN card, registration, etc., which is not recommended for any landlord or even tenant. For many tenants, landlord PAN card details are important for claiming HRA. Also, a rental registration document is a legal copy that outlines the rights of both landlord and tenants and is a must in case of any dispute.
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Tricky clauses
Be careful while signing the rental agreement and double-check all clauses. If need be, use a lawyer’s help to identify any issues. According to a post on reddit, a tricky clause used by landlords in the agreement is of the tenant having to vacate the property within a month if the landlord has an emergency and needs the house for his personal reasons. Later, the landlords use the help of this clause to increase rent within the same year, and a tenant is helpless as it’s written in the agreement. So, while signing the deal ensure that this clause is worked on and the landlord cannot take undue advantage of it.
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Property available with low rentals
If you are getting any property on rent that is asking for a rent that is much lower than what the market asks for, it’s a red flag. Check before you commit to such a property. You may run a risk of moving into a property that has litigation against it, and this may affect your future stay there as a tenant. There can be other problems such as foul smell from drainage, problems of insects, water problem, etc., which may affect livability.
Housing.com POV
Whenever you are looking for a property on rent, always do enough study to understand what you are getting and if it maps with what you are looking for. When you choose a house on rent, focus on the location, distance to necessities such as school and work, availability of basic facilities, safety in the area, and the rent the area asks for. Finally, if you really love what you see, ensure that you get it for the market rate and not the lowest possible rate as the chances of the property going from your hand are high. This is true even in case of supply more than the demand situation in the market because good rental properties are fast moving.
FAQs
When is the best time to negotiate rent?
The best time to negotiate rent is before you renew your lease or before you lock in an apartment where you will move in on rent. If you rent an apartment during the non-peak times, you may get a good deal.
What should you do if your landlord refuses to lower the rent?
If the landlord is refusing to lower the rent, negotiate on other factors such as longer lease terms, adding fixtures in the house, etc. If that also fails, evaluate if you want to continue or move to another property.
Can I lease a flat without registering the rental agreement?
No. While leasing a flat with just a notary or absence of it too is very easy and inexpensive, it brings along heavy risks for both landlord and tenant.
What is the first step to negotiate?
Learn about market conditions and existing rental rates to start with negotiations.
What are the things that negatively impact the rent of a location?
Lack of connectivity, ranking low on safety index, unhygienic surroundings, etc. impact the rent of a property negatively.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
