Posted by
ranti
15 yrs ago
My landlord wants to raise the rent. We are at the 10th month of a 1yr+1yr lease, and she said she wants to raise it by approx 10%.
I told her that rental rate is supposed to remain the same for duration of contract. Only at end of 2 years can she raise the rent?
Admittedly I got place for good rate back in May/09 but that was due to market conditions and her own desperation.
What are my rights in this regard?
Any insight is appreciated.
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Take a look at your contract. If the contract says the landlord can end the tenancy agreement after 12 months on - for example - 1-month's notice then she can raise the rent - if not, she can't. There is no law in HK that says she can raise the rent if that clause is not in the contract - even if it is 'standard HK practice'. I'm a landlord by the way. In short, If the 1yr+1yr only applies to you than she can't raise the rent. If it applies to both of you (or just her), then she can.
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ranti
15 yrs ago
Then what is the point of even having a 1+1 yr agreement??
I would not have asked for a rent reduction if the rental market rates went down again.......happy to negotiate a new rate AFTER the 1st one is completed though
I will consult with the property agent that prepared the lease agreement and see what they say.
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The 1+1 option for both landlord and tenants is in most HK contracts. I don't know why most tenants put up with it. I'm renting a place now and I insisted I had the option to leave after 13 months but the landlord didn't have the right. For me it's a deal-breaker as I have a wife and 2 kids. I can't be moving flat every 12 months. When I rent out my flat, I always offer tenants the same deal as it keeps the relationship good and they are more likely to stay. The trick as a landlord is to keep your rents reasonable, keep your tenants happy and only rent out to people with regular jobs (ie no businessmen). This keeps your cash flow steady.
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ranti
15 yrs ago
I'm on good terms with the landlord as I did not ask for a single thing since taking up residence so I doubt she would resort to eviction...which wouldn't be an option anyways since I do have a tenancy agreement in place and pay my rent on time every month.
The tenancy agreement did not state anything about whether rental can be increased during the 1+1....only that either party can terminate agreement after 1st year with minimum 30 day notice.
It would not be worth the time for landlord to have me move and then look for another tenant just for 10-15%.
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ranti
15 yrs ago
Yes the landlord is within her rights to raise rents...OK.
But 10-15% increase would not cover the expense of having the flat sit empty for 1 month or more, and coupled with the cost of paying half of an agent fee there's not enough $$ incentive at this point in time. Either way, I will propose a reasonable increase in rent (she has not said a firm number yet) and see what happens.
Tks for everyones input
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Well Ranti ... did she or didn't she ??
I would not be so sure about the flat sitting empty for " 1 month or more" I put a place up for rent and it was rented out in 2 days.
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ranti
15 yrs ago
It would sit empty because there are repairs needed on the flat. That was one of the reasons I managed to get a good price on the rent at the beginning. The landlord did not want to put any money into it. I put my own money into repairing some of the minor things, but there is one major thing wrong with it...slow leak or moisture from bathroom seeping into wall and affecting the floor.
This will require fairly extensive work and will not be cheap.
So...we are negotiating now. Will update later.
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