Rent increase negotiations

[PencilSkirt]

GeoExpatters - how receptive do you find HK landlords are to rent increase negotiations?

When I moved in to my one-bedroom place, my landlord advised that my rent would increase by 26% in 6 months once façade renovations were complete. No problem.

I've just been advised that rent will now increase by 56%. Feels unfair to me but perhaps that's just how things roll in HK? I'm very attached to the apartment and its location but I'm not sure if landlords are willing to even consider negotiating, or if it's on a case-by-case basis.

Advice appreciated.

[usehername]

If you're in a modern block your ll will be very up to speed on what similar flats are being rented for, and whilst 'being a good tenant' might get you a bit of a reduction, it won't be much.

[kimwy66]

Negotiate. Depends what the market is like for the location I guess.56% seems steep for external renovations. Our Landlord tried a 30% increase last time, we got it down to 10%

[Dreadnought]

Whilst you're negotiating for a lower increase, it might help to also ask for certain upgrades to the interior (make sh!t up if you have to, like re-tiling the bathrooms, or new(er) appliances and such).

[wtbhotia]

When I moved in to my one-bedroom place, my landlord advised that my rent would increase by 26% in 6 months once façade renovations were complete. No problem.

How can you LL increase your rent within 6 months, the 1st year is fixed????? or are you 6 months into your 1st year already.

[emx]

When I moved in to my one-bedroom place, my landlord advised that my rent would increase by 26% in 6 months once façade renovations were complete. No problem.

Is this actually written in your lease contract?

[Adore]

Are there so many renters out there that a landlord can increase rent by 26% or 56% and still easily find a tenant?

[Proplus]

Are there so many renters out there that a landlord can increase rent by 26% or 56% and still easily find a tenant?

Yes, in my current flat, if the landlord decided now to take back the flat and increase the rent by 60%, he'd still be able to find someone to rent to pretty easily, that's how cheap my flat is. Luckily, he doesn't care about the rent, just doesn't want the hassle of new tenants moving in, that's why our yearly increase is just 1 or 2 hundred bucks.

I know of an expat living in a 3000 Sq ft flat, can't quite recall if it's mid levels or Sheung Wan, she only pays 8k a month. Same situation really, landlord does not want the bother. There's a waiting list for that flat AFAIK. So if that flats rent was to go up 100%, there'd still be people wanting to nab it.

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[penguinsix]

Facade renovation price changes are often written into the lease. You can save quite a bit if you are willing to live with no view / lots of noise, but once the scaffolding comes down the prices often go up.

As for your current situation, I would get a spreadsheet. Calculate the next 12 months of rent at your current rate (or at a slight increase) and come up with the total amount of money the landlord would get at the end of the year. Then calculate the amount of rent they would get a) at the higher price but minus b) the landlords share of the agent's fee (about 50% of rent) along with c) a couple of months of the unit remaining vacant, say a minimum of one to clean and repaint and lease unto a maximum of 3 or 4. Depends how the turnover is in your building (ask the doorman how quickly units rent).

You'll then have some hard numbers to negotiate from. Tell him "you'll make more money and have less hassle renting to me over the next 12 months than you will trying to find a new tenant at the rate you propose"

[jw1701]

negotiating at present for a new 2 year agreement (8 year old complex).

LL initially wanted 14.5% increase but reduced to 9.8% when we pointed out the additional costs that him finding a new tenant would be avoided (vacant period, agency fee, cosmetic repairs).

believe this is pretty standard - anything above 20% sounds like a try-on unless there has been major upgrades done!