Huge Rent Increase

I am changing companies and since the old lease was with my old company I need to sign a new lease. Since this is a new lease the landlord is asking for a 35% increase!! Is this legal?

Hello.


I have heard of similar increases though not exactly the same situation. To be legal you should NOT take any advice from this forum but consult a lawyer.


Only my opinion: Your situation is terrible but this is how HK landlords work. If its in the lease that your company is paying then you don't have much room.


Move out and find something better/new.

Look on the direct owner lease & agency lease on Asiaexpat & around to get an idea of the real price of the market (be aware that there is usually room for a bit a negitiation). Then come back to your landlord/ lady. He / she expect that you'll agree to the rent increase (totally or partially) because you do not want to go through the hassle of moving out.


If the price is under the market, you may want to accept the increase (at leat partially).


If not, make sure he/she understands you are not ready to stay at any price, that you are ready to move out (even in temporary YWCA/ flat mate / service appartment and put furnitures in warehouse), and that she will have to look for someone who is not as careful & reliable a tennant as you are.


Get in touch with agents: some real serious ones can help you find sth you like and give you an opinion on the price of the market.


For anything else, look for legal professional advice.


Good luck

This is typical in HK and the mentality of many landlords especially when they know a company is potentially on title of the lease (assuming the company will pay just about anything).


While many people receive allowances for rent, we still have to pay tax on these allowances as income earned.


In either case, get a property agent who is locally involved to negotiate on your behalf if needed.


I can say from my observation that rents have increased say 20% min. over the last 12-18 months so again your may have to guage this realistically when you negotiate.


Use an agent outside of what your company offers as well as they are all looking to earn highest commissions only. Negotiate with your agent as well, say half months rent commission or less.


If a landlord is being unreasonable, then dont waste your time and walk away as in most cases thier reasoning for holding the rent high is that thier dreaming, stupid, or just real smart.

In my government building, everyone's rent increased $4000-5000 on their new contracts this year.