The amount a person pays for housing should usually be about a quarter of their total income. While this is not a hard and fast rule, it helps many people make budgets and plan their lifestyle accordingly. However, even with the best-laid plans, some people find that they are paying much more for rent than they can afford, and do not have enough of their income left over for other necessities. In this situation, consumers can request a rent reduction from their landlord. In order for this to be successful, here are a few tips for writing a rent reduction request letter.
There may be several reasons to request a reduction in rent, but the three most common are reduced income, reduced property value and repayment for repairs on the property.
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This may be because the property values were higher when they moved in, but have since fallen. Landlords can no longer ask for such high rents. In this case, tenants may think they can save money if they move to another apartment in the same location.
The letter should not begin with a long list of complaints. The tenant may think that the landlord has to reduce the rent if there are many problems with the property. However, this may not be the case, and it is better to maintain a cordial relationship with the landlord rather than make him angry. It is better for the tenant to emphasize the positive aspects of his or her tenancy such as paying rent on time, maintaining the lawn, making small repairs and other things that make a good tenant.
When requesting lower rent, it is a good idea to suggest a longer lease. The landlord may be more willing to lock in a good tenant even at a lower rate of rent, if the lease is for a longer period. This means the landlord will not be bothered with advertising for a new tenant and vetting applicants, which are both risky and
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For example, the death of a family member, loss of a job, debilitating injury from an accident or military deployment are all viable reasons people may suffer financial hardship. The tenant may request short-term reduction or long-term reduction in rent. For short-term reduction, the tenant should mention that amount he or she is willing to pay and the date on which they will resume full rent. For long-term reduction, the tenant may want to meet the landlord and discuss options in person. Offering partial payments may encourage the landlord to be sympathetic.
Finally, the tenant should consider the timing for asking for lower rent. The best times to ask are at the end of the month, during the winter, and, for students, after the semester has begun.
Here is a sample rent reduction request letter. It is a formal business letter that simply and clearly states the facts without complaints or accusations. If it is sent through the mail, it should be sent by certified mail with a return request. Otherwise, it can be hand delivered.
Name of Tenant
Address of
the rent is set at a lower than normal level, an unsatisfied demand is created.
If the government were able to lower rental costs, would it benefit those who cannot afford an increase in rent? This would be the immediate benefit. People would be able to better afford where they live. The issue is that the overall outcome is not considered. Rent control leads to unjust opportunities for those wanting to rent. The current residents would likely stay because of cheaper rent. It discourages landlords to repair or improved rental facilities since they no longer have a financial incentive. It also encourages the landlord to abandon current properties because of
Although the recent tech boom in San Francisco has been blamed for the increased housing demand and the lack of affordable rental housing in the City, the reality is that the shortage of affordable rental housing been steadily climbing for the last 35 years. Rent control is oftenat the center of the controversy regarding the affordable housing shortage. In response to high inflation, and escalating rents, San Francisco’s Residential Rent Stabilization and Arbitration Ordinance was passed in 1979 (Forbes, Sheridan, 1999). Rent control imposes restrictions on landlords in regards to rent increases and evictions. It is estimated that seventy percent of San Francisco’s rental units are under rent control (Marti, Shortt, 2013). Because of the limited rent increases allowed, tenants living in these rent controlled apartments seldom move out, which severely impacts the vacancy rates in the City. Although the vacancy rate among rent-controlled units is extremely low, there are occasions when a tenant may vacate a rent control unit (a job out of the area, the decision to purchase a home, etc.). When a rent-controlled unit is voluntarily vacated, the landlord is allowed to raise the rent to market rates (this is called vacancy de-control); then the rent control annual increase takes effect on the new rent. A landlord will often raise the new rent to the highest possible price the market will allow, in an attempt to recoup the financial loss he is incurring on the units still under rent control. Because of the new higher rent, the previously affordable unit is no longer considered affordable; which then impacts the inventory of affordable housing in San Francisco.
Although rent control is a controversial topic and many economists have argued with its inefficient outcome, many cities in the United States such as New York City and San Francisco still hold this kind of law or ordinances in their systems. Why these big cities do not want to abolish rent control and is that rent control really does harms more than goods? Focus on rent control in San Francisco, and compared to New York City, this essay tried to find the changes and the revises of rent control.
Tenants being charged a higher rate is also seen in Samiya Bashir’s “Home is Where the Harm is: Inadequate Housing as a Public Health Crisis”. The higher monthly rate is forcing families to neglect other needs, “when families are forced not only to meet, but often exceed, standard spending on housing, other important needs suffer, such as food, health care, and insurance as well as family activities that provide exercise and emotional stability” (Bashir 735).
As stated by Richard F. Burns and Thomas G. Vaccaro in Unaffordable Housing: A Root Cause of Social Inequality, 80% to 120% of area median income—also struggle to find affordable rental units in all 50 states. This lack of “workforce housing” results in their inability to live in or near the places where they work. Not being able to live near work if results in higher cost of living because you end up having to pay for either a car or, you could rely on public transportation or even have to pay forward gas money to another person. Housing also ties(“is also tied to”) to cost of living which turns out is very expensive. According to DePersio, Greg in "How Much Money Do You Need to Live in Los Angeles?, As of August 2015, the average rent in Los Angeles is $2,296 per month. Even if someone is only looking for a one-bedroom apartment, the average cost sits at approximately$1,950 per month. A two-bedroom apartment averages slightly over $2,500. So as one can see that they have to make at the very least $13 an hour just to pay rent, this does not even include food or utilities let alone if they have kids forget it. Because of unaffordable housing has left millions without homes making them fall under the category of
One reason why people become homeless could be due to the decline of housing units affordable to extremely low income households (National Resource Center on Homelessness and Mental Illness).
The main problem rent control can create to landlords is the case of the tenant do not move out because of the good rental price. That causes the landlords to lose money by not being able to increase the rental price of their units. Besides, the price of maintenance continues to increase, causing landlords to not earn any profit with their ...
At the present time, there is no form of nationwide or even statewide rent control in the United States. In basic terms, rent control refers to any government regulations on rental housing costs or limits reasons for eviction. These systems are most commonly used in populated cities where securing a home can be very difficult, especially for the lower class and disadvantaged groups. Being that California hosts such a high concentration of people, many local governments have established rent control to assist tenants in their communities. The State of California is in desperate need of a statewide rent control system.
In my experience as a real estate sales representative, I have looked at many rental properties that are owned by people that are commonly known as slum lords. These units are in disrepair with leaks, mold, mildew, holes in walls, ceiling and poor floor coverings. Many people are afraid of pushing these issues to have repairs done as they might lose their shelter or their rent could be increased. There are people living in a rooms in a house, that are also at risk as they don’t realize they are not protected under the tenant act so the owners can remove them from their shelter without notice. I have also experienced people living in abandoned commercial buildings ...
Include any rent you may owe to previous landlords, this way we can assist you eliminating that debt prior to exiting shelter
Intuitively if a zone has rent controls that indicate the apartment or house is located in an expensive area. So, that means the Landlord must also live near or in the same city. As a result, the landlord might struggle to pay his/her living expenses such as mortgages, utilities, and food in their area. Also, rent controls are unfair because they penalize the landlord for owning their property. For example, my grandparents rely on rental income to survive.
As we went through the apartment, I saw some things either needed to be fixed or replaced. At the end of the tour, I started the conversation about the rent. He was adamant that the rent should be $400 per person for 4 BHK apartment. I demanded the rent be lowered to $350 per month and demanded that the Wi-Fi be included and new heaters be installed because the current heaters were old and making noise. I Remember from the readings of Getting to Yes, develop options for mutual gain, I was looking for a two-year lease, coincidently, my land lord was looking for tenants who could sign a two-year lease instead of one, so I decided to sign the two-year deal, if he lowered the rent which was agreed at $370 per month including the Wi-Fi bill plus the heaters being replaced by new ones. By creating this win-win situation, both of us agreed on the terms and concluded the
Homelessness is a crucial factor as to why Americans don’t achieve the ideal “American Dream”. Homelessness is a social issue that affects a widespread group of people, ranging from single individuals to families each year. Many of those who are currently homeless, don’t choose to be homeless, but are forced into living on the streets for reasons such as a financial crisis, divorce, unemployment, mental illness, drug or alcohol abuse, or even a natural disaster that triggers the rising problem of how these individuals will survive. Annually, 3.5 Americans experience an episode of homelessness. That is 75,000 people experiencing homeless each night that others of more comfortable means will never have to experience. (Thompson). Homelessness
However, this can lead to a fall in supply and the quality of said property due to the small profit margin the landlord receives. Governments may introduce rent regulation such as a maximum price, this prevents the price of rent going above a set ceiling as can be seen in diagram one. Quantity supplied is below quantity demanded leading to excess demand but in theory a cheaper housing market for consumers, therefore making housing more affordable. However, when this theory is applied in an actual economy the adverse effect takes place, as it creates welfare loss, which is the loss in producer and consumer surplus due to an inefficient level of production perhaps resulting from market failure or government failure (Tutor2u). Landlords also greatly loose out as they now receive less for their property due to the maximum price.