Posted by
mdap
17 yrs ago
My neighbour asked me if it is normal for his landlord (my other neighbour) to raise his rent 15% in 2008 and then again by an aditional 28% commencing 2009! It appears this landlord has missed the global financial meltdown or is perhaps so astute as to want to lock in a massive rent increase before the HK property market dives ....
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Yep that's normal and a clever landlord, make ($) it while you can, but then again the poor ole sole maybe lost out the rest of his life savings with minibonds after the bank staff sold him on them saying the were as safe as a safe. And the government does nothing about it.
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As far as I know HK doesn't have any protection for the tenants regarding rent increases. That's why you see ridiculous rents on premium places like Mongkok, Causeway Bay, LKF, etc. The way they see it is if you don't want it, someone else does.
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cd
17 yrs ago
I thought the rent couldn't be increased while you were under a contract, so only at the end of the 2 years.
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The friend probably signed a 1 year contract. Is what the landlord asking for market? If it is, then your friend really has no reason to complain as he would have gotten cheap rent for a few years.
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mdap
17 yrs ago
he signed a 2+1 contract .... he already pays 195k a month .... sure the landlords is not doing anything wrong ... just bemuses me that he will risk losing the tenant ... the apartment was empty for three years before .... oh and as for the minibond losers ...how would they feel to know Nomura has g/teed all the senior Lehman staff (HK) bonuses for 2008 and 2009 .... paying 100% cash ......
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195k a month??? That's obscene.
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The only way the landlord can raise the rent is if the contract is or will be finished. Depends on the details, but surely a 2 month notice should be the norm. For a place that expensive, how come your friend and landlord can't come up with a compromise? Surely inflation is a factor, but to lose a good tenant (assumingly) is just as important.
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mdap
17 yrs ago
yes i am sure they will sort something out .....and chinacrisis, there is a place in the building behind me just leased for $450 a month ... that is crazy and I think this spurred my neigbour's landlord to act
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"195k a month??? That's obscene."
Totally subjective, as is the 450k figure. There are apartments that go for much more, and apartments that go for much less. If someone is willing to pay, then there you go.
"For a place that expensive, how come your friend and landlord can't come up with a compromise? Surely inflation is a factor, but to lose a good tenant (assumingly) is just as important."
I agree. I think a lot of landlords can be softened up. You can't assault frontally, though. Be cool and when time is getting short ask them if there is anything "they can do for you". They may not lower the rent (since they want the "sticker" to be high) but I have heard of arrangements where you get, for example, the first 6 months of the contract rent free.
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Mr. H where do you live? $5K a month sounds fabulous!
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I know someone who pays 10k USD/month...
Well not him, his company.
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Your friend should threaten to move - there is a glut of top-range housing, so it shouldn't be a problem looking for something similar, unless he's paying HK195K/mth for a mansion on Victoria Peak (in which case, it's a bargain!).
Since he acceded to the 15% hike in 2008, the landlord probably thinks he can push his luck and ask for 28% more. If he swallows that, expect rent to rise 40% in 2009. Tell your friend not to be too nice. :)
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My landlord is happy to have a trouble-free tenant. He would rather not have the hassle of finding a new (possibly dodgy) tenant.
That said, the global financial crisis will likely help curb rent increases (and employment).
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Mr. H, that sounds like a village house...and possibly out in the boonies somewhere..can't really compare to a 195k property can you?
i've seen squatters living for free under a tarp and 4 sticks in the hills while hiking...sounds like an even better deal than YOU have (get the point?)
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ha! i could have transposed a few phrases i guess! actually, the one i saw this Tues. had a beautiful harbour view! possibly upper 6 digit rent...
IH... I was being a bit facetious...just a bit
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