Skip listen and sharing tools

Negotiate a rent reduction

With the information you have from your tenant and the knowledge of your own situation, either agree to the tenant’s reduced rent request or offer the tenant a reasonable alternative.

You are encouraged to negotiate in good faith. This means:

  • negotiating with the intention to reach agreement
  • trying to understand the other party’s situation
  • being flexible where you can
  • taking account of all the information available
  • avoiding assumptions about the other party’s position, and
  • actively listening and engaging in discussions.

If a property manager or estate agent is negotiating on your behalf, they should act in the same manner and be transparent in their role as agent between you and the tenant.

With this approach, most landlords and tenants should be able to reach agreement on terms that work for their situation.

It is not intended that the tenant is in a debt situation at the end of the reduced rent agreement period. If you ask the tenant to defer payments to a later date, rather than reduce the rent amount, they do not have to agree to this request if it does not suit their financial situation.

When agreement is reached, the details should be registered with us so everyone is clear on what has been decided. We are not prescriptive about the form an agreement should take.

The key elements it must include are:

  • name of tenant
  • name of landlord
  • property address
  • rent pre-agreement
  • rent for the period of the agreement
  • time period agreement will be in place.

If you do not have template for agreements, you can use our Temporary rent reduction agreement (Word, 28KB).