Guidance for rent negotiation discussions

Tenancy Services has provided some guidance on rent discussions.

When experiencing financial pressures, we encourage tenants and landlords to talk and work together to reach an agreement on how to resolve issues with rent payments.

Prepare to talk

Tenants and landlords are encouraged to talk to each other as soon as possible if there are going to be issues paying rent. If you would like to discuss a rent negotiation, plan a day and time that suits both parties. Come prepared to the discussion with key points you would like to discuss, including:

Consider a rent amount you would like to propose that you can afford
If you are a tenant:
- Have a think about how much you can afford, prepare a budget and be prepared to discuss your situation openly with your landlord
- You may wish to share information about any change in your financial situation such as reduced income from loss of job or reduced work hours
- Do not agree to a figure you know you cannot afford
- Think about what evidence you can share about your change in circumstances, and the other ways you have tried to afford your rent
- Remember the rent the landlord receives is their income and they may not be able to have their income reduced by the amount you are seeking.
If you are a landlord:
- Consider your tenant’s history with you
- Consider the benefits of keeping a tenant in place compared to the cost and uncertainty of changing tenants during this time
- Consider whether you can afford to accept either a temporary rent reduction or rent deferment.
Have a start and end date in mind as part of your rent negotiation. Make sure you consider other factors including employment that may affect your ability to pay rent.
Have a payment plan in mind. If you are a tenant, consider the amount and frequency of payments to your landlord. If you are a landlord, ensure you have planned for any rent negotiations that might impact your responsibilities and property.
Set out any agreement you reach clearly and what the review or end date is.
If possible, talk to other tenants or landlords who are in similar positions and see what agreements they reached. Real-life examples can help both parties to understand what a rent negotiation might look like. For instance, a tenant might be able to provide a copy of a payment plan that a family member or friend in a similar situation has agreed to with their own landlord.
Remember, the tenancy agreement between the tenant and the landlord is a legally binding document between both parties. Any agreement you reach in relation to rent will only vary those specific terms. Your responsibilities as agreed in the tenancy agreement remain.

It is important both parties try and look at this situation as a whole, and not just the individual view. Try to think about some of the issues the other person may face, and what you can do to help.

Once you have determined key points you would like to discuss, write them down as notes and refer to these during your discussion.

We encourage tenants and landlords to be considerate and patient during these discussions. Stick to the agreed times and give each other the opportunity to share their key points. If you are unable to make your agreed discussion time, let the other person know as early as possible.

Have you considered all your options?

Tenants and landlords might want to consider the following rent-related options where possible:

Temporary rent reduction. Landlords may be able to provide reduced rent for a period. After the period has ended, the rent is reinstated to its original amount.
Rent payment plan. Both parties might reach an agreement that negotiates rent payments and rent arrears payments. This could include allowing tenants to continue their tenancy with an agreed repayment plan in place for any arrears.

In some instances, this might mean looking into other support that is available:

If your housing is at risk and you have no way to pay the rent you owe, Work and Income may be able to provide financial support with living costs

Helping with living expenses(external link) – Work and Income New Zealand

There are services that offer New Zealanders free advice and impartial information to help budget and manage money

Budget planner (external link)– Sorted New Zealand

Financial advice and financial hardship(external link) – Money Talks New Zealand

Reaching an agreement

Any agreement you reach must be recorded in writing and signed by the tenant and landlord. Make sure you both have a copy of the signed agreement. You may wish to seal your agreement through FastTrack Resolution.

FastTrack Resolution

Dispute resolution services are available if you are unable to resolve any tenancy related issues, depending on your situation.

More information on disputes and the disputes process