How I Saved £60 A Week In Rent

In today's troubled property market, it's easy to persuade your landlord to charge you less rent. Just follow this Fool's example...

Given the current state of the housing market, you could be forgiven for thinking that renters are up the proverbial creek without a paddle.

Thanks to the credit crunch, landlords have bigger mortgage bills to pay -- but also a wider `captive audience' of tenants to pass them on to, as first-time buyers are kept off the property ladder.

In June, buy to let mortgage lender Paragon Mortgages reported that rental yields had reached their highest level in two years, rising 6% in six months and 12% over the previous year.

These statistics look great for landlords, but worrying for renters like me.

On the move

Having lived in the same flat for two years -- and after struggling with some long-term maintenance issues -- my boyfriend and I recently decided it was time to move.

Anyone who followed my flat hunt through my blog will be familiar with our struggle -- particularly the tale of the £270 a week hovel.

As we searched for a suitable new home, the standards and prices of the properties we viewed seemed increasingly erratic.

Soon, I began to wonder whether stories of rising rental yields had unrealistically inflated some landlords' expectations.

Nifty negotiating tips

Despite being told by some property professionals that we were now in "a landlord's market", my boyfriend and I weren't put off pushing our luck.

Eventually, we viewed a lovely flat in a beautiful part of London that was initially advertised at £325 per week (so just under £1,500 per month). This is the flat we're moving into later this month.

However, we'll be paying weekly rent of £265 -- a massive saving of £60 a week off the original asking price (that's £3,120 a year)!

Here, I'll explain the negotiating techniques we used, in the hope they'll help some of my fellow Fools.

1. Know your market. As I've explained, it can be difficult to get a solid idea of what properties are really worth. However, the more information you have, the better.

Sign up for property alerts from websites such as PrimeLocation.com, and view properties at different price points through different estate agents.

You'll see how much rents can vary, and this will help give you the confidence to negotiate.

2. Think like a landlord. If you were letting out a property, what sort of tenant would you want? Would you want someone reliable, honest and likely to stay in the property for a while -- or simply someone willing to pay an extra £10 per week in rent?

The difference between what you can afford and what the landlord is asking is obviously a key issue -- but it's far from the only issue, as we discovered.

3. Sell yourself. My boyfriend and I are both permanently employed, and each have Bachelor's and Master's degrees. As a former teacher, I also have a PGCE -- irrelevant, you might think, but for my new landlady, this qualification in particular showed I was trustworthy and responsible.

As well as informing her about our degrees, we also got references from our employers and professional friends.

According to our estate agent, all this seriously impressed our would-be landlady.

4. Make an offer. Never agree to pay the advertised price of a rental property. Landlords and estate agents rarely expect to get 100% of what they ask for -- so why not play their game?

We knew the landlady of our new flat had already accepted an offer below her asking price, which had fallen through -- so we undercut even this.

Fully expecting a knock-back in the first round of negotiations, we instead received a phone call telling us the flat was ours.

5. Commit to rent for longer. With the economy so unpredictable, some landlords will leap at the chance to secure tenants for two or three years, instead of the usual six to 12 months. Ours was one of them.

Satisfied with the standard of the property and the conditions of our contract, my boyfriend and I signed a three year lease with no break clause.

It might sound scary, but for us it makes sense. As an added bonus, we've convinced our landlady commit to inflationary-only rent rises for the duration of the tenancy -- which offers valuable peace of mind.

6. Go unfurnished. Even if a property is advertised furnished, it doesn't mean the landlord already has the necessary items.

If you view a property yet to be furnished, why not offer to take the place bare? It could save you £15-20 per week in rent.

While you'll have buy furniture yourself, this initial outlay should save you money in the long-term.

This is a tip we used the last time we were flat-hunting -- and it definitely works.

7. Don't pay for what you won't use. If a property is advertised with a parking space or garage you don't need, ask the landlord to rent this out separately.

If they agree, this could get you a discount of perhaps £5 per week -- especially in a crowded city like London.

8. Sweat for your saving. Yes, I do mean literally. If there are things about the property you'd like to see improved, why not offer to sort them yourself for a reduction in rent?

We offered to re-paint the walls of our new flat in a neutral colour, to offset other more costly requests we'd made -- and our landlady was thrilled.

The rental rumour mill

I think the size of the saving we've achieved on our new flat is unusually high, especially in London, which still has a thriving rental market -- but it shows that not all landlords are as complacent as the statistics might suggest.

Our landlady was highly motivated to accept our offer -- perhaps because she has an expensive mortgage to pay on her property, or because she's had dodgy tenants in the past.

It's clear that rental prices have increased over the past few years. What is still unclear is by how much. No estate agent I dealt with during my recent property search had the same impression of the market -- and this seriously weakens the argument that tenants should accept they're disadvantaged, and have to pay more.

If -- as I believe -- a bubble of false confidence has blossomed in the rental market, it may not be long before it bursts.

Ultimately, a property is only worth what someone is willing and able to pay for it.

I checked this morning. And the £270 hovel is still on the market.

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