banagan Posted April 1, 2018 Share Posted April 1, 2018 What is the average % rent increase here in Chiang Mai? What would be a fair amount? Link to comment Share on other sites More sharing options...
Popular Post Thailand Posted April 1, 2018 Popular Post Share Posted April 1, 2018 Generally zero percent increase. 4 Link to comment Share on other sites More sharing options...
Popular Post daoyai Posted April 1, 2018 Popular Post Share Posted April 1, 2018 0% ....good renters are hard to find and usually retained by not raising rent. 6 Link to comment Share on other sites More sharing options...
simoh1490 Posted April 1, 2018 Share Posted April 1, 2018 (edited) +1 Edited April 1, 2018 by simoh1490 1 Link to comment Share on other sites More sharing options...
coxo Posted April 2, 2018 Share Posted April 2, 2018 It's all about supply and demand, it might even go down as mine did in Bkk... Link to comment Share on other sites More sharing options...
Peterw42 Posted April 2, 2018 Share Posted April 2, 2018 Unless its specifically written into the lease, the rent cannot go up during the lease term. After that its open market. 1 Link to comment Share on other sites More sharing options...
Popular Post worgeordie Posted April 2, 2018 Popular Post Share Posted April 2, 2018 We have not put our rents up for 10 years,happy with the returns, and with so much competition,it's not really possible,especially if you want a quick turnaround with new tenants,better than asking more then maybe wait 3-6 months to find new renters. regards worgeordie 5 Link to comment Share on other sites More sharing options...
inThailand Posted April 2, 2018 Share Posted April 2, 2018 For a 30 yr lease price to be determined one must assess the real market sales value which is usually significantly less then the asking price. It has always been a buyers market and even more so now and for the foreseeable future. I am a a buyer by nature but even in this dim market you have to seriously consider renting instead. Remember the poster who was offering to rent the condo he wanted to sell, with no rental guarantees. Why? Because he can not sell his white elephant. Link to comment Share on other sites More sharing options...
banagan Posted April 2, 2018 Author Share Posted April 2, 2018 I'm negotiating my lease now. 3 year lease. They said 10% increase a year, every year after that. Have never heard of that here, but have never rented a house long term. Link to comment Share on other sites More sharing options...
HLover Posted April 2, 2018 Share Posted April 2, 2018 2 minutes ago, banagan said: I'm negotiating my lease now. 3 year lease. They said 10% increase a year, every year after that. Have never heard of that here, but have never rented a house long term. May be time to shop around for a new house. With the current stale rental market, you could negotiate elsewhere. 1 Link to comment Share on other sites More sharing options...
worgeordie Posted April 2, 2018 Share Posted April 2, 2018 1 minute ago, banagan said: I'm negotiating my lease now. 3 year lease. They said 10% increase a year, every year after that. Have never heard of that here, but have never rented a house long term. Don't fall for it,better not to be committed to a property for long term contract,some things can change,and you are stuck there,leave and you lose your deposit, it should be 10 % DECREASE every year, !,competition is that tough. regards worgeordie 1 Link to comment Share on other sites More sharing options...
inThailand Posted April 2, 2018 Share Posted April 2, 2018 1 minute ago, worgeordie said: Don't fall for it,better not to be committed to a property for long term contract,some things can change,and you are stuck there,leave and you lose your deposit, it should be 10 % DECREASE every year, !,competition is that tough. regards worgeordie Agreed! Good renters are scarce here. By negotiating a new lease every year you have the leverage. Same rent or even a discount is more than possible. 1 Link to comment Share on other sites More sharing options...
banagan Posted April 2, 2018 Author Share Posted April 2, 2018 (edited) 24 minutes ago, inThailand said: Agreed! Good renters are scarce here. By negotiating a new lease every year you have the leverage. Same rent or even a discount is more than possible. Seems to be the consensus alright. I rent a house back home, same tenants for 6 years, haven't put the rent up once, even though the market price has gone up, a lot. I'm just happy with good hassle free tenants. I could kind of understand if we were in Hong Kong, Singapore... but Chiang Mai? There's an option to not put a mandatory increase into the contract.... hmmm. Anyway, I sort of knew already that this wasn't the case, just wanted to get some opinions here, cheers. Edited April 2, 2018 by banagan Link to comment Share on other sites More sharing options...
Lacessit Posted April 2, 2018 Share Posted April 2, 2018 There's a glut of apartments and houses for rent in Chiang Mai. My condo rent has not increased for 5 years, and was reduced before that. The OP should focus on keeping good tenants, as once lost the benefit of a rent increase is swallowed up by prolonged vacancy periods. 1 1 Link to comment Share on other sites More sharing options...
banagan Posted April 2, 2018 Author Share Posted April 2, 2018 5 minutes ago, Lacessit said: There's a glut of apartments and houses for rent in Chiang Mai. My condo rent has not increased for 5 years, and was reduced before that. The OP should focus on keeping good tenants, as once lost the benefit of a rent increase is swallowed up by prolonged vacancy periods. OP here. I'm not leasing, I'm renting. Thai landlord wants to work in 10% increase a year into the contract. Link to comment Share on other sites More sharing options...
Popular Post Lacessit Posted April 2, 2018 Popular Post Share Posted April 2, 2018 1 minute ago, banagan said: OP here. I'm not leasing, I'm renting. Thai landlord wants to work in 10% increase a year into the contract. Tell him you're moving. 5 Link to comment Share on other sites More sharing options...
elgenon Posted April 2, 2018 Share Posted April 2, 2018 24 minutes ago, banagan said: Seems to be the consensus alright. I rent a house back home, same tenants for 6 years, haven't put the rent up once, even though the market price has gone up, a lot. I'm just happy with good hassle free tenants. I could kind of understand if we were in Hong Kong, Singapore... but Chiang Mai? There's an option to not put a mandatory increase into the contract.... hmmm. Anyway, I sort of knew already that this wasn't the case, just wanted to get some opinions here, cheers. Do your expenses and property tax increase each year? My property taxes increase each year and workers charge more for their services each so I have a hard time not raising rents for the rental back home. If I don't my net is less each year. And then when expensive things need to be done there is less money. I like to be able to maintain the property in good fashion. Link to comment Share on other sites More sharing options...
banagan Posted April 2, 2018 Author Share Posted April 2, 2018 (edited) 5 minutes ago, elgenon said: Do your expenses and property tax increase each year? My property taxes increase each year and workers charge more for their services each so I have a hard time not raising rents for the rental back home. If I don't my net is less each year. And then when expensive things need to be done there is less money. I like to be able to maintain the property in good fashion. Yes, but don't want the hassle of finding new tenants and the mortgage is still covered. At this point, I think a 5% increase would be fair. But am now thinking of just selling. I couldn't justify 10% increase each year, unless I was upgrading the property each year. Edited April 2, 2018 by banagan Link to comment Share on other sites More sharing options...
inThailand Posted April 2, 2018 Share Posted April 2, 2018 Consider a yearly renewal option instead of a 3 year fixed term. This way you have a yearly outclause option and if staying you know you lease amount. Link to comment Share on other sites More sharing options...
inThailand Posted April 2, 2018 Share Posted April 2, 2018 But with most legal documents they don't matter much here because of ethics and the legal system. So with this risk paying advance money for a non registered lease may turn out to be a nightmare. 1 Link to comment Share on other sites More sharing options...
sfokevin Posted April 2, 2018 Share Posted April 2, 2018 (edited) Given the huge oversupply of both condos and houses in all parts of Chiang Mai if I were presented with any agreement that had a rent increase built in I would grin and walk away... And if my present landlord suggested a rent increase after my lease in up I would agree and give them 90 days notice and move nearby to an even cheaper and newer house... Edited April 2, 2018 by sfokevin 1 Link to comment Share on other sites More sharing options...
Lacessit Posted April 2, 2018 Share Posted April 2, 2018 1 hour ago, sfokevin said: Given the huge oversupply of both condos and houses in all parts of Chiang Mai if I were presented with any agreement that had a rent increase built in I would grin and walk away... And if my present landlord suggested a rent increase after my lease in up I would agree and give them 90 days notice and move nearby to an even cheaper and newer house... Unfortunately, some Thais are so afflicted by greed they have no concept of future consequences. I know of a business in one popular tourist area that was doing well, so the landlord hiked the rent by 50%. The business moved out about a year ago, and the shop has been empty ever since. 1 Link to comment Share on other sites More sharing options...
banagan Posted April 2, 2018 Author Share Posted April 2, 2018 6 minutes ago, Lacessit said: Unfortunately, some Thais are so afflicted by greed they have no concept of future consequences. I know of a business in one popular tourist area that was doing well, so the landlord hiked the rent by 50%. The business moved out about a year ago, and the shop has been empty ever since. I think this is more common with retail, like you mentioned. I saw this a lot in China also, when landlords see a business doing well... short sighted greed takes over. The overwhelming consensus for residential property I'm getting, is not the case. I think they maybe thought I just got here :D Link to comment Share on other sites More sharing options...
lkn Posted April 5, 2018 Share Posted April 5, 2018 On 4/2/2018 at 11:58 AM, banagan said: At this point, I think a 5% increase would be fair The fair thing would be to base it on a price index which would probably put it around 1-2%. 1 Link to comment Share on other sites More sharing options...
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