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Re-negotiate lease post 12-month break clause

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  1. #1

    Join Date
    Feb 2019
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    18

    Re-negotiate lease post 12-month break clause

    Hi,

    Has anyone had experience of re-negotiating their lease post the 12-month mark? I have a two year lease which has a 12-month break clause. Just arriving at the 12-month mark and am looking to re-negotiate at current market levels which it looks like is much less than what it was when I signed a two year lease.

    Would appreciate any advice on dos and donts.

    Thanks


  2. #2

    Join Date
    Nov 2019
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    2,164

    Check what is currently on the market and what you can rent for? Ask different agents to provide you with current listings.

    Re-negotiate with the LL at similar levels or tell them you wish to vacate...


  3. #3

    Join Date
    Feb 2009
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    8,280

    To give you some facts before commencing your negotiations, according to one index, property prices are 3.57% lower than this time last year. Also, didn't you get a good deal in August last year anyway due to all the protests and the negative sentiment that had already set in at that time? Anyway, good luck!

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  4. #4

    Join Date
    Apr 2012
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    the property index you see published are fake. They are trying really hard to keep the prices up. I can see many expats leaving HK and flats being vacant. Just be cheeky, never be the first to give a number as this will be the anchor for the negotiation.

    Just ask what they think is a fair number considering the market. I would think 10-20% would be a fair game.

    shri, tf19, LukeUk and 1 others like this.

  5. #5

    Join Date
    Nov 2005
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    Cramped island
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    the residential rental index is a separate index and it should be around 10% lower than what the top was a while back.. centraline index has the fault of not being able to adjust to developers giving discount post sales... and the discounts are getting really high these days, supposedly 7% 10% type of cash rebate are given back to buyer via the agent


  6. #6

    Join Date
    Feb 2019
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    3,240

    You can definitely get at least 10% off. We got that in two steps, about 5% each time, with threat of moving out - though LL didn't want to extend lease so slightly risky I suppose as we only have a month or so notice if they think they can do better.


  7. #7

    Join Date
    Mar 2009
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    Hong Kong
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    I would just keep it friendly and lower expectations. As in I would casually ask, and then if the landlord doesn't offer, be prepared to just leave without making it a confrontation.

    They are under no requirements to give a discount, but you are also under no requirements to stay after 12 months. If the prices have gone down, then there will be similar flats nearby that are lower in rent anyway. If the landlord doesn't want the hassle of finding a new tenant, they will probably offer a discount. If you don't want the hassle of moving to a new place, you will probably just keep paying the current rent.

    traineeinvestor likes this.

  8. #8

    I am in the same exact situation.

    I just very respectfully asked: yo my lease is coming up, I love staying here blah blah but given the market (citing comparable flat prices around) would like a reduction in line with that. Totally understand if you can't + no hard feelings whatsoever, and happy to help find a new tenant when I move out.

    It helps if you really intend to move though. I actually wanna go somewhere larger (given WFH) so intend to do so unless I can get a reasonable discount (weighing the moving hassle).

    Best of luck.

    AmyMi likes this.

  9. #9

    Join Date
    Jun 2011
    Posts
    1,693
    Quote Originally Posted by bdw:
    To give you some facts before commencing your negotiations, according to one index, property prices are 3.57% lower than this time last year. Also, didn't you get a good deal in August last year anyway due to all the protests and the negative sentiment that had already set in at that time? Anyway, good luck!

    You are totally off, why are you quoting sales prices when we are talking rent negotiations?

    Even the HK gov provides data on rental prices, up until June and now with the last wave of covid, it probably dropped even a bit lower in July. You can find the data here: https://www.rvd.gov.hk/en/property_m...ics/index.html

    It shows clearly rents are down quite a bit, of course with a bit of variation on areas, sizes etc. The data is also a bit scetchy because its based on few transactions, so best is to just calculate an average over all the data.

  10. #10

    Join Date
    May 2020
    Posts
    89

    So suggest you check the listing rental price of similar unit before talking to your landlord. You can find the information from agents' website.


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