Posted by
smp6
11 yrs ago
We have been living in a HK apartment for the last two years, fairly happily. The rent is at the upper end of what we can afford to pay but the area is wonderful, lots of restaurants bars etc and quick to get to work for both my husband and I.
Our tenancy renewal is due at the end of next month but our landlords have asked for a huge increase in the monthly rent - by over 10%. We cannot afford this increase, whatever they think.
I am not sure if they are taking us expats for a ride or if this is their way of saying "we want you out". Overall our tenancy has been stress-free. Does this mean we should try to negotiate a lower price or should we just move? We are very happy in our flat. Moving at the end of the year would be stressful and costly.
Would really appreciate any advice on this issue, if anyone has experience of how to navigate this. Our landlords are HK locals, but we communicate with them via their lawyers.
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Negotiate. If they're stubborn, I'm sure you can find a lower priced flat somewhere a bit further away. Need not fear moving although it's a hassle.
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Agree with Punter, negotiate but, mind you, 10% is within the limits as you have the downside that you like it so much, you want to stay. Also, it depends on when you striked your first rent, compared to then, if the rent is obviously higher, you cannot expect a flat rate. You're at the point where they like you as a tenant but, landlord also needs to adjust.
If they really want to kick you out, they will ask for something obscene. Our ex neighbor that was causing nuisance to everyone, was asked 80%( they striked at the lowest for 1st term) increase.
If you are prepared to move in worst case scenario, look around, always fun to look at new flats! Then tell them that you have found a "nicer place" with your current rent, it worked for us to decrease the rent to 5% raise.
My 2 cents worth.
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smp6
11 yrs ago
Thanks guys. I thought property prices in HK were falling a bit, and maybe rents would come down too? Naive or not, I thought the landlord wouldn't ask for a such a high increase. I resented paying half a months rent to the property agent when we signed our lease, this may come up again if we move. Stumping up more deposits and agency fees is a big layout. What would you say we should negotiate for? 5% increase?
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I would think that the landlord is thinking 10% is a reasonable increase. If they're going to put the flat in the market once you move, the 10% increase they're asking is not enough for the number of months it's going to be empty and the works they need to put in to make the place "presentable" to the next tenant. If I were renting, I would call the bluff. No idea what the actual rental scene is though...
With the negative news on property, I would definitely call the bluff but at the same time get ready to move to a "newer" development.
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agree with Punter once again! 10% includes the risk of you saying "no way" and thinking of the the "vacancy" months.
Regarding the property prices, I would not rely on the index 100% as it's a generic trend. There is another factor, popularity of the complex itself, and it's more about how the data of the complex is, is it new, does it have facilities, etc, as some of the compounds are stable even though it's during a downward trend, also, renovation of the building does speak a lot in this town, once it is about to start, the rents shoots down!!( and of course, it's quite unbearable)
I really can't judge if 5% is ok or not but, in any case, I think that every contract renewal, you've got to be prepared for the raise, agency fee, etc and decide over all.
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Go talk to your local agents and ask to see other properties in your community, that will give you an idea of what new market rents are like.
And by the way, you always need to negotiate hard with Chinese. You won't offend them by haggling and they are not intending to offend you either.
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Oski
11 yrs ago
Don't even bother offer the 5% increase. Just tell your landlord you can only agree to same rent, and be prepared to move.
the difference between 5 or 10% is not going to be the deal breaker.
He will either insist on 10% increase, or he will agree to same price.
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doggy
11 yrs ago
Good luck, my landlord has tried to increase mine 100% over two year. We 'negotiated' to a 90% increase.
http://hongkong.asiaxpat.com/forums/living-in-or-moving-to-hong-kong/threads/152193/increase-in-rent-crazy/
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smp6 - go and look at the listings in the local realty outlets (RicaCorp and Midland come to mind) in your area. There may be flats in your complex that are on the market. That might give you an idea of what the asking rental is.
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smp6
11 yrs ago
Hi hkdann,
We've been looking at Squarefoot for flats and property.hk . The prices in our area for 2 bed flats are within our range, but when I call the agent and enquire about the flat, they either say the flat is no longer available or the rent is actually.... higher than the price advertised. Very sneaky! And many of the weasel agents seem more concerned with asking us where we come from and what jobs we have. I am sure this just means they can tell landlords to increase prices and swizz the "rich gweilos". Never encountered so much dishonesty before. Someone told me the other day renting is now a landlords market.
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smp6
11 yrs ago
Hi Malka, thanks for the advice, will investigate!
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Smp6, square foot is not as accurate as you hope it will be. Some agents post their own employee's gorgeous house to "bait" clients. ( won't say which one but, happened to us!) Everytime I looked around flats on HKIsl, there were quite an inaccuracy with square foot and reality.
When you look for flats, I would strongly recommend not to work with just 1 agent. The agent / landlord relationship reflects on the rent price directly and negotiation power.
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&&&
11 yrs ago
In HK, agents work for landlords interest. Landlords are staple food for them, while you're the occasional a la carte entree.
Local media analysis is that with the govt real estate policies, owners are holding off as long as they can for the big speculators from PRC to return. Meanwhile, many will rent out the apt. So, rental market is coming down. That's the macro trend.
The micro trend is how desirable is your apt block etc etc like one person has stated.
I would put out word via the same agent that negotiated for you that you are looking at other apts. And you should, just in case.
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