Prepare for a lease negotiation using market data and negotiate several terms with the landlord.
When a landlord asks for more rent at renewal, research the market before you start looking for a new place. Preparation tends to pay off, because both sides lose something if you leave, and a lease renewal is one of the most common negotiations adults in Singapore face.
Priya and Kevin rent a two-bedroom condo unit in Sengkang for S$3,000 a month (an example figure, like every amount that follows). Three months before the lease ends, the landlord's agent sends them a WhatsApp message saying the owner wants S$3,300 a month for the next two years. Kevin wants to start looking for somewhere else. Priya wants to know what the flat next door rented for. Hers is the better instinct, because she treats the increase as a reason to research the market first.
Start with current asking rents for similar units nearby. Property portals list rentals by area, size and type. A comparable unit is in the same development or the next one, with a similar number of bedrooms and a similar floor area. Record five or more of them, each with its asking rent and the date you saw it.
Asking rents are not the same as agreed rents. Listings often settle a little lower, especially if they have been up for a while. Note how long each listing has been up, or check back a week later to see which ones are still there. Units that stay listed for weeks suggest the market is softer than the asking prices make it look, and units that disappear within days suggest it is firmer.
Priya found six comparable units with asking rents from S$3,050 to S$3,350. Two of the higher-priced units had been listed for over a month. From this she estimated that the realistic market for their unit is around S$3,100 to S$3,200, below the owner's S$3,300. A realistic range drawn from comparable units works as an objective criterion, an outside standard that supports your position, in the sense used in Lesson 1.3, Separate the people from the problem.
Next, estimate the landlord's BATNA, as covered in Lesson 2.3, Estimate theirs and find the zone of possible agreement. Here it means what the landlord would face if you moved out: usually some time with the unit empty, possibly an agent's fee, perhaps some redecoration, and the risk that the new tenant pays late or treats the flat badly.
Compare that cost with the size of the increase. The owner is asking for S$300 a month more, which comes to S$3,600 a year. One empty month at S$3,300 means S$3,300 in lost rent. Two empty months means S$6,600, almost two years of the increase, and that is before any agent's fee.
A tenant who pays on time and looks after the unit is worth a lot to a landlord, and most landlords know this. Make your record part of your case and state it plainly. Priya and Kevin have paid on time for two years and kept the unit in good condition, so Priya includes both points when she replies to the agent.
Price is rarely the only issue in a negotiation, as Lesson 3.2, List the issues and decide what you can trade, explains. A lease has several other terms you can raise:
Lease length. A longer lease gives the landlord certainty, and that can be worth a lower rent to them. Repairs, meaning who pays for what and whether an old appliance is replaced before the new lease starts. Furniture, whether that means adding, removing or replacing items. The diplomatic clause, which some leases include. It lets a tenant end the lease early in set circumstances, such as a job posting overseas. The move-in or renewal date, and the notice period each side must give.
List the terms that matter to you and decide your priorities. Priya's priorities are the rent and a newer washing machine, because the current one has broken down twice. A two-year lease suits them because they plan to stay.
Priya then puts two offers on the table at once, in the style of Lesson 5.3, Put several offers on the table at once. Offer A is S$3,150 a month for two years with the washing machine replaced. Offer B is S$3,200 a month for two years without replacing the washing machine now, for an owner who would rather not replace it yet.
Everything you agree must go into the tenancy agreement itself, and having it in the WhatsApp chat with the agent is not enough. A message from the agent confirming that the owner agrees to change the washing machine is a useful record of the discussion. In a later dispute, though, both sides will rely on the signed agreement.
When the renewal agreement arrives, check it against your notes item by item, as described in Lesson 5.4, Close the deal and write it down. Go through the rent, the dates, the repair terms and every clause you discussed. If anything you agreed is missing, ask for it to be added before you sign.
Priya will start with the listings. Do the same for your own area: find five or more comparable units, record each asking rent with the date you saw it, and note how long each has been listed. Then name the three terms besides rent you'd put on the table.
Find five comparable listings in your area. Then write down three terms, apart from rent, that you would negotiate.
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