Quick answer
To ask your landlord for a rent reduction, ring the leasing agent first, before the rent is late. Say what you're asking for (a cut, a pause or more time), give two or three numbers that show why, and offer something back such as a longer term. Then confirm any agreement in a signed variation, because a verbal yes usually isn't enough.
Key points
- Ring before the rent is late. A tenant asking early is a negotiation; a tenant already behind is a debt collection.
- Usually you're talking to the managing agent, who has to take your request back to the owner. Make it easy for them to do that.
- Ask for one specific thing: a temporary cut, a deferral or a payment plan. 'Times are tough' on its own rarely moves anyone.
- Offer the landlord something: a longer term, a firm payment date or avoiding an empty shop.
- Many leases say changes must be in writing. A phone yes only counts once it's in a signed variation.
- If the call stalls, your state's small business commissioner runs lease mediation. Fees in Victoria and Queensland are modest.
Ring the leasing agent before the rent is late, and ask for one specific thing: a temporary cut, a deferral, or more time on a set date. Give two or three numbers that explain why, offer something back, and then get whatever you agree in writing. A phone call opens the negotiation. A signed variation is what closes it.
Why ring first, not write first?
Most owners reach for a letter template. Templates are fine for the paperwork, but the conversation comes first, for three reasons:
- An agent can tell you what the owner needs. Is the owner worried about vacancy, a bank loan on the building, or the shop going dark? You learn that in two minutes on a call and never from a letter.
- Early reads as responsible. A tenant who rings in October to talk about January’s rent is a problem being managed. A tenant who goes quiet and pays late is a risk.
- It’s quicker. If the answer is no, you find out now and can move to the next step instead of waiting a fortnight for a reply.
If you owe money to a lender too, the same principle applies there: our guide on calling your lender before a missed repayment covers that call.
Who are you actually ringing?
For most shops and offices, that’s the managing agent, not the owner. The agent will almost always say, “I’ll have to take that to the owner.” So your job on the call is to give them what they need to take it up the line:
- A clear request (the amount or the type of relief, and for how long).
- A short reason in numbers.
- What you’re offering in return.
Ask at the end: “What will the owner need from me, and when will you have an answer?” Write down the date.
What to have on the desk before you dial
- Your lease. Check the rent, review dates, the term left, any option to renew, and whether it says variations must be in writing.
- Your numbers for the last three to six months. Turnover trend, rent as a share of turnover, and what you can pay each month without going backwards.
- Comparables. Two or three nearby listings for similar premises, and how many are empty. Public listings are enough.
- Your track record. How long you’ve traded there and whether you’ve paid on time. Say it. It’s your best asset.
- Your ask, in one line. For example: “Rent at 75% for three months from December, back to the lease amount from March.”
What should you ask for: a cut, a deferral or more time?
These are three different requests, and an owner treats them very differently.
| Ask | What it means for the owner | When it fits |
|---|---|---|
| Temporary reduction | They lose income they won’t get back | A real, visible dip, with a clear end date |
| Deferral | They get the money later, with the risk | A seasonal squeeze, where cash returns in a known month |
| Payment plan for arrears | They get everything, just slower | You’re already behind, and can show how you’ll catch up |
A permanent cut is the hardest ask. Owners worry it resets the value of the building, which matters if they have a bank valuation coming up. A defined, temporary measure with a date back to the lease rent is much easier to say yes to.
The script: the first call to the agent
Keep it calm, short and specific. Lead with your history, then the ask.
“Hi, it’s Sam from the shop at number 14. We’ve been tenants for four years and haven’t missed a payment. I’m ringing early because trade is down about a fifth on this time last year, and I’d rather talk now than fall behind. I’d like to ask the owner for rent at 75% for three months from December, then back to the lease rent from March. I can send you our last six months of figures. Who should I send them to, and when might I hear back?”
Illustrative example only.
Why it works:
- The history is up front. It tells the agent you’re worth keeping.
- “Early” and “rather talk now”. It signals you aren’t hiding.
- A precise ask with an end date. It’s easy to forward and easy to say yes to.
- A next step. You leave the call knowing who has the ball.
How do you answer “why should we?”
This is the question that decides it. “Times are tough” isn’t an answer. Pick what’s true for you:
You’re a reliable tenant.
“Re-letting this shop would probably take months and cost you agent’s fees and incentives. I’d rather stay and pay a fair rent. If the owner can help for three months, I’ll commit to the full amount from March.”
Illustrative example only.
The market has moved.
“I’ve looked at what’s around. There are a few similar shops on the market in the same street. I’m not asking for something unusual, I’d like the rent to reflect where things are now.”
Illustrative example only.
You can offer something.
“If it helps, I’d be happy to extend the lease by a year, or pay on the first of the month by direct debit so you never have to chase.”
Illustrative example only.
Offering a longer term is the strongest trade, but only offer it if you really want to stay. Don’t promise a longer commitment you can’t keep.
What if they say no, or “we’ll have to see”?
Don’t argue on the call. Say:
“Understood. Can you tell me what would help the owner say yes? I can adjust the timing or the term.”
Illustrative example only.
Often you’ve found a lever: a shorter period, a different start date, a guarantee. If it’s still no, ask them to confirm that in an email so you have it on record, then consider the commissioner route below.
Put it in writing, even if they said yes
A friendly yes on the phone is easy to lose. Many leases say any change must be written and signed, and a new agent or a new owner won’t remember the call.
The same day, email the agent: “Thanks for your time today. To confirm, rent will be $X per month from [date] to [date], then back to $Y from [date]. Can you send a lease variation for us to sign?” Have your solicitor or accountant read the variation before you sign it. The variation should say what happens to the unpaid difference. Is it waived, or does it still have to be paid later?
If your business is also behind with suppliers, our guide to the Small Business Debt Helpline shows what a free call to a financial counsellor involves.
When the call goes nowhere: state commissioner help
Each state has a small business commissioner who deals with lease disputes. The fees and rules below come from their own pages, so check them before you lodge.
| State | What’s on offer |
|---|---|
| Victoria | The Victorian Small Business Commission provides free preliminary assistance. Mediation fees were listed in early 2026 at $300 per party for a half-day and $600 for a full day. Retail lease disputes must go to the VSBC before they can progress to VCAT. |
| Queensland | The QSBC mediates small business and retail shop lease disputes. The fee is $396.64 for applications in 2026/27, split between the parties. Fee waivers are available for financial hardship. You’re expected to try to resolve it yourselves first, and for retail shops mediation comes before QCAT. |
| New South Wales | The NSW Small Business Commissioner runs mediation for retail and commercial lease disputes. Phone 1300 795 534. |
Mediation is a structured negotiation. It can’t force a landlord to cut your rent. But a neutral third party often gets an owner to the table, and the commissioners’ own figures show a good share of disputes sort out early. The VSBC reports that 33% of disputes were resolved through its preliminary assistance alone in 2024–25. If you’re in another state, search for your state’s small business commissioner or retail tenancy rules.
What if rent isn’t the only pressure?
Sometimes the rent call is the first domino. Quiet months, slow-paying customers and a lease that was priced for a better year can stack up. Before you commit to any plan, add up what you owe and when, and which conversations you still need to have. Our page on telling a lender about existing business debts helps you describe it out loud, and the what to say when you call page covers the first minute of any business finance call.
If a short-term gap is what’s stopping you from agreeing a sensible deal with your landlord, it’s worth ringing us on 03 4059 1829 or checking your options online before the next rent date.
Ready to talk about the money side?
Asking your landlord for breathing room is a good sign, because it means you’re managing the business, not waiting for it to manage you. If what’s missing is a bit of working capital to bridge the quiet months while the new rent arrangement kicks in, that’s a conversation we have often.
Filling in the enquiry takes about 60 seconds, and there’s no credit check when you enquire, so your credit file isn’t touched just for asking. We don’t send your details out to a pile of lenders. A real person looks at your individual situation and calls you. All we ask is that you fill the form in accurately, so we can match you with the right option first time.
Frequently asked questions
Who should I ring: the landlord or the agent?
Start with whoever you send the rent to or whoever is named in your lease for notices, which is usually the managing agent. Agents rarely have the authority to agree a cut on their own, so ask what they need to put to the owner and by when. If you have a good relationship with the owner directly, ringing them is fine, but still follow it up with the agent.
How much rent reduction is reasonable to ask for?
There's no standard figure. Anchor it to evidence: what comparable premises nearby are asking, how many are vacant, and what your own numbers can sustain. A short, defined relief period (say a few months at a reduced amount, then back to the lease rate) is easier for an owner to agree to than an open-ended cut.
Can my landlord refuse to reduce my rent?
Yes. Unless your lease or a specific law gives you a right to relief, a landlord is generally not obliged to cut rent just because trade is slow. That's why the call works best when it gives the owner a reason, such as keeping a reliable tenant, rather than relying on a right you may not have.
Does a verbal agreement with my landlord count?
Don't rely on it. Many leases require variations to be in writing, and memories differ later. After the call, email the agent a summary of what you agreed, then get a signed lease variation or deed. Your solicitor or accountant can check it before you sign.
What if the landlord says no or stops replying?
Your state small business commissioner can help. The Victorian Small Business Commission offers free preliminary assistance and, after that, mediation for retail leases. The Queensland Small Business Commissioner mediates small business and retail shop lease disputes. The NSW Small Business Commissioner runs mediation for retail and commercial lease disputes. Check each website for current fees and eligibility.
Should I stop paying rent while we negotiate?
Generally no. Paying less than the lease requires without a signed agreement can put you in breach and hand the landlord leverage. If you can't pay the full amount, say so in the call, offer what you can pay on a set date, and get the arrangement confirmed in writing.
What if the rent is only one of several bills I'm behind on?
Then the rent call is one conversation in a bigger plan. Work out what's urgent and what a lender, supplier or free financial counsellor can help with. If a short-term funding option would cover the gap while you renegotiate, a specialist can talk through whether you qualify.