Renting an apartment in New Zealand, especially in cities like Auckland, Wellington, and Christchurch, can be incredibly competitive. Understanding how to negotiate your lease can save you significant money and secure better living conditions. This article provides practical strategies and insights to help you navigate the New Zealand rental market and get the best possible deal.
Understanding the New Zealand Rental Market
Before you start negotiating, it’s crucial to understand the current state of the New Zealand rental market. Vacancy rates fluctuate depending on the region and time of year. For instance, areas with a high influx of students, like Dunedin or Palmerston North, might see higher demand (and therefore potentially higher prices) at the beginning of the academic year. Checking websites like Trade Me Property or Realestate.co.nz Rent can provide up-to-date data on available properties and average rental prices in your desired area. Also understand the implications of the Residential Tenancies Act 1986 and any changes or updates to it, as this act outlines the rights and responsibilities of both tenants and landlords in New Zealand. It sets the legal framework for tenancies, including aspects like rent increases, bond payments, and termination of leases.
Timing is Everything
The best time to negotiate can depend on seasonal trends. For example, you might find more flexibility during the colder months when demand is generally lower. Landlords are more likely to be open to negotiation if their property has been vacant for a while. Keep an eye on how long a listing has been online. Research comparable properties in the area. Understanding the average rent for similar apartments in your specific location gives you solid ground to stand on when negotiating. Websites mentioned above are excellent resources to research this.
Building a Strong Application
The foundation of a successful negotiation often lies in presenting yourself as an ideal tenant. Provide a complete and detailed application with all the necessary information. This includes proof of income (payslips, bank statements), references from previous landlords, and a personal statement highlighting your reliability and respect for property. Landlords want tenants who are likely to pay rent on time and maintain the property. A strong application demonstrates these qualities clearly.
Negotiating the Rent: Strategies and Tactics
The most obvious area for negotiation is the rent itself. However, directly asking for a discount requires finesse. Avoid simply saying “Can you lower the rent?”. Instead, frame your negotiation with specific reasons and supporting evidence.
Highlighting Property Flaws
If the property has flaws—minor repairs needed, outdated appliances, or less-than-ideal aspects like single-glazed windows (which can lead to higher heating bills)—use these as leverage. Clearly and respectfully point out the issues, and suggest a small reduction in rent to compensate. Example: “I noticed the oven is quite old. Would it be possible to negotiate a slightly lower rent to account for potential higher energy consumption or the cost of replacing it if it breaks down soon?”
Offering a Longer Lease Term
Landlords appreciate stability. Offering to sign a longer lease can be a powerful negotiating tool. If you are willing to commit to 18 months or two years instead of the standard 12 months, you may be able to negotiate a lower monthly rent. This provides the landlord with guaranteed income and reduces the risk of vacancy.
Discussing Inclusive Rent
In some cases, you might be able to negotiate the inclusion of certain utilities in the rent, especially in apartment complexes. Common services that might be included are water, sometimes internet, or even a carpark. While it might not result in a direct reduction of the rent amount, it can significantly decrease your overall monthly expenses.
Paying Rent in Advance
Offering to pay rent a few months in advance can make you a more attractive tenant. This provides the landlord with immediate financial security and reduces their risk. In exchange, you can request a small discount on the monthly rent. This is particularly effective if you have the financial means to do so.
Negotiating Rent Increases
The Residential Tenancies Act outlines the rules around rent increases. Landlords can only increase the rent every 12 months, and they must give you at least 60 days’ written notice. When a rent increase is proposed, you can try to negotiate it down if you believe it’s unreasonable based on market conditions or property condition. Research comparable properties in your area to support your argument.
Beyond the Rent: What Else Can You Negotiate?
Rent is not the only factor to negotiate. Many other aspects of the lease can be discussed to improve your living situation and potentially save money.
Bond Amount
While the bond amount is legally capped at the equivalent of four weeks’ rent, it’s still essential to understand your rights. The landlord must lodge the bond with Tenancy Services within 23 working days. Ensure you receive a bond lodgement form and keep a copy for your records. Request a thorough property condition report at the start of the tenancy to avoid disputes when the tenancy ends. It’s challenging to negotiate the bond amount itself (since it’s often fixed), but focus on ensuring a fair and accurate property condition report. Document any existing damage with photos or videos before you move in. This will protect you from being held responsible for pre-existing issues when you move out.
Pets
Finding a pet-friendly apartment in New Zealand can be challenging. Many landlords have a “no pets” policy. However, you can try to negotiate this. Offer a pet bond (in addition to the standard bond) to cover any potential damage caused by your pet. Provide references from previous landlords who can vouch for your pet’s good behavior. Emphasize that you are a responsible pet owner and will ensure your pet does not disturb other tenants or damage the property. Be prepared to provide evidence of pet training or good pet ownership practices. Create a “pet resume” that highlights your pet’s responsible nature and training.
Carparking
If the apartment doesn’t include parking, try to negotiate the use of a parking space, especially if the building has vacant spaces. If a parking space is included, check the cost and inquire if it can be removed to lower the overall renting fee. Parking in city centres like Auckland or Wellington are expensive, and securing a parking space, or eliminating the parking fee is a huge saving.
Furnishings
If the apartment is only partially furnished, see if the landlord is willing to add any additional furnishings you need (a bed, a dining table, etc.). Alternatively, if the apartment is fully furnished but you have your own furniture, inquire if the landlord is willing to remove certain items to provide you with more space. Negotiating the removal of furniture can sometimes lead to a lower rent, as the landlord has less responsibility for maintaining those items.
Garden Maintenance
If the property has a garden, discuss who is responsible for maintaining it. If it’s your responsibility, and you’re not a keen gardener, you might be able to negotiate a reduction in rent or have the landlord cover the cost of a gardener. Alternatively, if you enjoy gardening, offer to maintain the garden in exchange for a small reduction in rent.
Communication is Key
Throughout the negotiation process, maintain open and respectful communication with the landlord or property manager. Avoid being confrontational or demanding. Instead, approach the situation as a collaborative effort to find a mutually beneficial agreement. Clearly articulate your needs and concerns, and be willing to compromise. A positive and professional attitude can go a long way in securing a favorable outcome.
Know Your Rights and Responsibilities
Before signing a lease, thoroughly review the tenancy agreement. Understand your rights and responsibilities as a tenant under the Residential Tenancies Act. Pay particular attention to clauses regarding rent increases, termination of the tenancy, and repairs and maintenance. The Tenancy Services website is an invaluable resource for information and advice on tenancy matters. Familiarize yourself with the dispute resolution process in case any issues arise during your tenancy.
Case Study: Successful Negotiation in Auckland
Sarah, a young professional moving to Auckland for a new job, found an apartment she liked in Ponsonby. The advertised rent was $650 per week. After researching comparable properties, she discovered that similar apartments in the area were renting for around $620 per week. She also noticed that the apartment had single-glazed windows and no insulation, which would likely result in higher heating bills during the winter. She approached the landlord with this information, politely pointing out the market rate and the potential heating costs. She offered to sign an 18-month lease in exchange for a $30 per week reduction in rent. The landlord, keen to secure a long-term tenant, agreed to the reduction. Sarah also negotiated the inclusion of water rates in the rent, saving her an additional $20 per month. By doing her research, communicating effectively, and offering a longer lease term, Sarah successfully negotiated a better deal and secured an apartment she loved at a price she could afford.
Case Study: Negotiating a Pet-Friendly Tenancy in Wellington
Mark and his partner found a great apartment in Wellington that unfortunately had a “no pets” policy. However, they own a well-trained and small dog named Max. They wrote a letter to the Landlord explaining they were responsible pet owners, Max was house trained, and offered references from previous landlords who could attest to Max’s good behavior. They also offered an additional ‘pet bond’ of one extra week’s rent to cover any potential damages Max might cause, although they ensured Max was toilet trained and couldn’t imagine needing it. The extra level of security, along with their commitment to regular flea treatments and keeping Max off furniture, gave the landlord peace of mind. They successfully negotiated turning the apartment into pet-friendly.
Practical Examples: Phrases to Use
Instead of blunt requests, here are some examples of phrases you can use:
- “I really like the apartment, but I’ve noticed that similar properties in this area are renting for around . Would you be willing to consider a slightly lower rent of ?”
- “I’m looking for a long-term rental. Would you be open to negotiating a lower rent if I sign an 18-month or two-year lease?”
- “I’m happy to pay rent in advance. Would you consider a small discount in exchange for months’ rent upfront?”
- “Are there any possibilities of adding whiteware equipment like a washing machine or dryer if I sign an 18 month lease?”
Red Flags to Watch Out For
While negotiation is essential, be wary of landlords who are unwilling to compromise on anything or who exhibit unprofessional behavior. This could be a sign of potential problems down the line. Watch out for these potential warning signs:
- Refusal to provide a written tenancy agreement. All agreements should be in writing.
- Demanding excessive bond or rent in advance beyond the legal limits.
- Unwillingness to address necessary repairs or maintenance issues.
- Entering the property without proper notice.
FAQ Section
Here are some frequently asked questions about negotiating a New Zealand apartment lease:
What is the maximum bond amount a landlord can charge?
In New Zealand, the maximum bond amount a landlord can charge is equivalent to four weeks’ rent.
How often can a landlord increase the rent?
Landlords can only increase the rent once every 12 months, in accordance with the Residential Tenancies Act 1986. They must provide at least 60 days’ written notice of the increase.
What happens if the landlord doesn’t lodge the bond with Tenancy Services?
Landlords are legally required to lodge the bond with Tenancy Services within 23 working days of receiving it. If they fail to do so, they could face penalties. As a tenant, you can file a complaint with the Tenancy Tribunal.
Can a landlord refuse to rent to me because I have a pet?
Yes, landlords are generally allowed to refuse to rent to tenants with pets, unless there are specific discrimination laws in place that protect pet owners. However, you can always try to negotiate a pet-friendly agreement.
What should I do if the landlord doesn’t carry out necessary repairs?
If the landlord fails to carry out necessary repairs, you should first notify them in writing of the issue and give them a reasonable timeframe to address it. If they still don’t take action, you can apply to the Tenancy Tribunal for resolution.
Is it possible to break a lease early? What are the consequences?
Yes, it’s possible to break a lease early, but typically you’ll be responsible for covering the landlord’s costs associated with finding a new tenant (advertising costs, etc) and lost rent until a new tenant starts paying. Negotiate with your landlord, and actively seek a replacement tenant yourself can help limit your financial obligations.
References
Residential Tenancies Act 1986
Tenancy Services website
Ready to Negotiate?
Don’t be afraid to negotiate! By understanding the market, building a strong application, communicating effectively, and knowing your rights, you can significantly improve your chances of securing a better lease and a more comfortable living situation in New Zealand. Start your research today, identify potential properties, and prepare to negotiate your way to a great deal!
