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What is a Rent Concession Letter?

A Rent Concession Letter is used by tenants to negotiate the rent with the landlord in case of an emergency situation like the COVID-19 outbreak.

It is entirely upon the landlord’s discretion to accept the rent concession letter and agree to the terms.

A Rent Concession Letter can be useful for both parties to continue the rent agreement and avoid vacant spaces during the time of emergency.

Rent Concession Letter

How to Implement a Rent Concession Letter?

Once the landlord has agreed to the terms mentioned in the Rent Concession Letter, there are two ways one can implement the concession.

Through a side letter: This letter includes the temporary arrangement for rent concession. All the terms and conditions should be clearly mentioned in order to avoid any conflict that may arise in the future.

Use a deed of variation: This is basically a permanent change to the existing contract.

What does a Rent Concession letter include?

These are the important things to include in a rent concession letter.

Name and address of the tenants: This includes the name and full address of the tenants who is writing a letter to the landlord.
Waiver: This includes the waiver expectation from the tenant’s point of view.

Reason for asking for a concession: tenants should explain the reason behind the rent concession. For instance, during the covid-19 outbreak, many people lost their jobs and source of income which brought an increase in the rent concession cases. However, it is not mandatory for the landlord to accept the concession terms.

Duration: This is the duration or time period for which a tenant asked for the rent concession.

Termination: A termination policy should be well written. Under what circumstances the rent concession will become void should be properly explained and written down.

Government law: It should be clearly mentioned in a rent concession letter under which governing or applicable law the rent concession is valid. This will protect the legal rights of both tenant and landlord.

Signature of both parties: This includes the signature of both parties who have agreed on the terms of a rent concession letter.

Reasons to ask for a rent reduction

1. Financial trouble
As seen due to the pandemic recently, financial trouble can be a great reason to ask for a cheaper rent. Explain how this was unforeseen and  mention details of your plan going forward and assure them that you will be responsible and on your feet financially at some point.

2. Competing properties have lower rent
If the housing market around your has similar comparable units with better facilities and at a lower price, use it to negotiate your rent.

.3. Lack of amenities
If you current residence lacks amenities that other similar properties around you does have, bring this to the attention of your landlord. You can use this to negotiate rent or request that such amenities be put into your building.


A rental concession is a compromise by the landlord to help the tenants continue with the rent. There might be various reasons a tenant can ask for the rent concession but it is up to the landlord’s will to accept or decline the rent concession.

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