Posted by
Dragon
16 yrs ago
My tenant wants to negotiate reduction in rent when I renew his lease soon. But I have checked out the rents in the area and they are pretty much the same as when he signed 2 years ago!
So which areas is the 25-30% decline affecting? Have some areas held up better than others? Or I have missed something?
Advice how to handle please.
Please support our advertisers:
Dragon, if I may be so frank: it sounds like you are in denial over the state of the rental market. I mean that in the nicest way possible, and it is certainly not meant personal: many landlords are in denial! If you felt confident you would not need other people's advice. My suggestion is to inform yourself: e.g. check out recent rental data on http://www.centadata.com. There are loads of rental properties on the market, with many having been there for six to twelve months! Without knowing the specifics, I have the impression that rents in the expat areas are AT LEAST down 30% from 2 years ago. Good luck with your negotiations!
Please support our advertisers:
ldavy
16 yrs ago
Dragon, it would be useful if you told us where your flat is. onemorething, can you advise how to get centadata.com in English?
Please support our advertisers:
To onemorething: this the reason for my posting on here because although I've done my research into the area and know the general state of the markets, then what explanation can be given if my rental value hasn't dropped dramatically like some places?
Thanks for the centadata link. I looked and noted that a flat in the area rented out for $27 psf last month so that is close to the figure I mentioned. The area is around Stubbs Road near Shiu Fai Terrace.
Of course what the prices in the estate agent windows don't reflect what is finally agreed on.
Please support our advertisers:
That may depend on the area perhaps, but the mid-levels is down a LOT from exactly two years ago. I don't think you want to lose a tennant in this market where there is an abundance of "cheap" vacant flats.
Please support our advertisers:
Just to share the recent experience of a friend who's a landlord renting out a 500-plus sq ft apartment (newish dvpmt) in Soho. Current tenant was renting at HK$17000 and just before the contract was up, without trying to negotiate, he went to the agent to shop for something cheaper (apparently his housing allowance was cut by the co.). When my friend found out (when the agent called him to ask when he was putting the flat back on the market), he went directly to the tenant and offered to cut the rent to HK$13000 (which he figured is slightly below current market price of HK14-15K). The reason he gave was 1) this was a good tenant and very timely with the rent and also not v demanding 2) he would have to spend some money doing basic renos before putting it back on the market and 3) he would lose money if it sat empty while waiting for a new tenant, not to mention the agent's fee again.
Please support our advertisers:
You must be logged in to be able to reply.
Login now
Copy Link
Facebook
Gmail
Mail