Anyone experiencing rental price reductions YET?

[3421abc]

My contract expired in march and I am currently going on a monthly basis. I have no plans to renew at the current price. I expect rental prices to come down since many condo owners were renting short term (airbnb) will switch back to long term for obvious reasons and there is a glut or empty condos in Bangkok. I just started looking and haven't seen any reductions. There is an unit next to mine that is empty for the past 3 months and the rent is still the original asking price. I am wondering how long it will take for landlords to adjust their prices to a new reality.

[sucit]

Make an offer. If all you say is true you should have some great leverage. 

[bbi1]

I'd be making offers of 50% of what the asking prices are

[jackdd]

There is currently a similar thread running in the Chiang Mai forum.  I think the answers there apply to all of Thailand and not only CM, so you might want to have a look there:

 

[baansgr]

My landlady has given me 10% discount for the next three months...nice gesture, didn't even ask her.

[ukrules]

1 hour ago, baansgr said:

My landlady has given me 10% discount for the next three months...nice gesture, didn't even ask her.

They're crapping themselves, if you were to move out now that's it, nobody will rent it for a year.

[Quickmill]

We had a reduction of 15% for the next three months, we simply asked without suggesting a price, something is better than nothing, i do believe that good manner persons ( tenants and landlords) can always find a satisfactory deal without to pretend the moon.

[Zikomat]

 Lots of people still assume that life will be back to normal as soon as the lockdown is lifted. In such a case why would they give a big discount for a long term contract? When there will come an understanding of the real situation - then we might see some substantial discounts. Not yet.

[baansgr]

11 hours ago, ukrules said:

They're crapping themselves, if you were to move out now that's it, nobody will rent it for a year.

I'm actually on a 3 year contract and have no intention of moving..

[DeeMak9]

The hostility against landlords never ceases to amaze me. Renting out property is the livelihood of many and some of you dare to talk about 50% reductions. Unless you're jobless or got a 50% reduction on your salary yourself, shame on you.

Edited April 25, 2020 by DeeMak9

[Mick501]

Just renewed lease for six months.  Same rent, but insisted on a new sofa (much needed).   Landlady didn't hesitate and said to buy whatever sofa I wanted and take it out of the rent.   

 

They know they are lucky if they have a tenant at all, let alone one with a good track record.  Got to strike the balance between abusing your advantage and maintaining good relations.

[Lucky dog]

Supply and demand. Makes the world go around. 

[spiekerjozef]

cheap charly tenants special forum.

[Nurseynutcase]

Well, I am very lucky - my landlady has given me a 50% discount for two months - I never asked for it she offered it.  Was stunned - most unexpected.

[Max69xl]

12 hours ago, Zikomat said:

 Lots of people still assume that life will be back to normal as soon as the lockdown is lifted. In such a case why would they give a big discount for a long term contract? When there will come an understanding of the real situation - then we might see some substantial discounts. Not yet.

No normal person thinks it will be back to normal when they eventually lift the lockdowns. Most people overseas have no money for travelling because they've been laid off. The tickets might go up maybe 50%. This is a perfect time to re-negotiate a long term lease. 

[brain150]

Would not be surprised to see rentals go down 90% in the next 3 month !

Especially in tourist areas.   ... no tourists will come for the rest of the year or maybe even much longer !

 

Property market to collapse just like most of the economy and monetary system. 

... all made by design using a fake SPAMdemic.

[baansgr]

1 hour ago, brain150 said:

Would not be surprised to see rentals go down 90% in the next 3 month !

Especially in tourist areas.   ... no tourists will come for the rest of the year or maybe even much longer !

 

Property market to collapse just like most of the economy and monetary system. 

... all made by design using a fake SPAMdemic.

Wow, so that 60,000 4 bed private pool villa near the beach will be able to rent for just 6k..fantastic

[3421abc]

I read the property prices in Hong Kong started to fall because many Chinese mainlanders are selling at discounts. I expect the Chinese will do a fire sale of their properties in Thailand if the situation in China doesn't improve. I have a friend in China who told me people are doing fire sales to get cash in order to keep their businesses afloat. It will be interesting to see how the next 6 months will play out. One thing for sure.... There will be some good deals for condos in Thailand and Cambodia, both places rely heavily on Chinese buyers.

Airbnb hosts in Thailand are dead in the water for at least a yr, might as well try to rent long term.

[how241]

2 hours ago, Nurseynutcase said:

Well, I am very lucky - my landlady has given me a 50% discount for two months - I never asked for it she offered it.  Was stunned - most unexpected.

That was very nice of her.  What would also be nice if you refused the discount, assuming that you are not really hurting for money.  Remember that this rental income is her living expense money.  If you truly need the discount then take it BUT some people are just trying to capitalize on a bad situation. 

[ukrules]

4 minutes ago, how241 said:

some people are just trying to capitalize on a bad situation.

That's a good way to make money, you buy when everything goes to sh|t and then wait it out.

 

Something about buying when there's blood in the streets, we're nowhere near that stage yet.

[treetops]

14 minutes ago, how241 said:

Remember that this rental income is her living expense money.

She should be prepared to take the rough with the smooth. Being a property landlord should not be expected to give a stable income.  High return = high risk.

[chobina]

My original monthly rent was 12000.

 

I asked the owner for a discount of 3000 baht. He agreed on having me pay 9000 baht a month but there’s a catch...

He would be deducting those 3000’s from my initial deposit of 24000 baht.
I have 7 months to go, and wasn’t expecting to get my deposit back anyway.
So not exactly a discount, but It surely helps given the current situation...

Edited April 25, 2020 by chobina
Typo

[how241]

6 minutes ago, treetops said:

She should be prepared to take the rough with the smooth. Being a property landlord should not be expected to give a stable income.  High return = high risk.

If the people renting are decent people then it should not be 'high risk' BUT there are always people that will try to use anything and everything to their advantage.  Most of these renters never were on the 'other side' of the story and assume that the landlord is some super rich person. The old saying applies, do unto others as you want other to do back to you.

[spidermike007]

7 hours ago, DeeMak9 said:

The hostility against landlords never ceases to amaze me. Renting out property is the livelihood of many and some of you dare to talk about 50% reductions. Unless you're jobless or got a 50% reduction on your salary yourself, shame on you.

Oh stop. We are talking about supply and demand. Landlords are like anyone else. Demand drops, and they have to adjust. Get off your high horse. It is very unbecoming. We all have to make a living. In some areas of the economy, landlords are some of the few that are still making exactly as much as they did before the zombie apocalypse. Many of us are out of work, and living off of savings, and many are out of work, and do not have savings. Landlords are the last group in the world who need defending. Find a more useful cause! 

[treetops]

Just now, how241 said:

If the people renting are decent people then it should not be 'high risk' BUT there are always people that will try to use anything and everything to their advantage.  Most of these renters never were on the 'other side' of the story and assume that the landlord is some super rich person. The old saying applies, do unto others as you want other to do back to you.

I disagree.  With any money making venture the return goes up as the risk goes up.  These problem tenants you describe are part of the risk and if survival depends on rental income then a landlord has to accept that.  They could always have put their money in 1% supersafe bonds but chose to aim higher, with everything that goes along with it.

[how241]

2 minutes ago, treetops said:

With any money making venture the return goes up as the risk goes up.  These problem tenants you describe are part of the risk and if survival depends on rental income then a landlord has to accept that.  They could always have put their money in 1% supersafe bonds but chose to aim higher, with everything that goes along with it.

You make some valid points here. 

[twocatsmac]

18 minutes ago, chobina said:

My original monthly rent was 12000.

 

I asked the owner for a discount of 3000 baht. He agreed on having me pay 9000 baht a month but there’s a catch...

He would be deducting those 3000’s from my initial deposit of 24000 baht.
I have 7 months to go, and wasn’t expecting to get my deposit back anyway.
So not exactly a discount, but It surely helps given the current situation...

Your landlord is a sharp business man, I’ve not heard of this ruse before but these are extraordinary times.

[sucit]

17 minutes ago, spidermike007 said:

Oh stop. We are talking about supply and demand. Landlords are like anyone else. Demand drops, and they have to adjust. Get off your high horse. It is very unbecoming. We all have to make a living. In some areas of the economy, landlords are some of the few that are still making exactly as much as they did before the zombie apocalypse. Many of us are out of work, and living off of savings, and many are out of work, and do not have savings. Landlords are the last group in the world who need defending. Find a more useful cause! 

Pick a few random items you may wanna buy. Car, hamburger, computer, rent....

 

Now pick the one, and the only one, people are trying to get away with not paying currently. I am not talking about Thailand btw, I just disagree with what you said. The potential regulations coming down are singling out landlords. 

[Airalee]

47 minutes ago, how241 said:

That was very nice of her.  What would also be nice if you refused the discount, assuming that you are not really hurting for money.  Remember that this rental income is her living expense money.  If you truly need the discount then take it BUT some people are just trying to capitalize on a bad situation. 

The landlords that aren’t proactive in taking care of their clients risk losing them to a better deal...sometimes within the same building.

[Airalee]

6 minutes ago, sucit said:

Pick a few random items you may wanna buy. Car, hamburger, computer, rent....

 

Now pick the one, and the only one, people are trying to get away with not paying currently. I am not talking about Thailand btw, I just disagree with what you said. The potential regulations coming down are singling out landlords. 

Car dealers are offering discounts.  Burger King and McDonalds are currently offering discounts up to 50%.  Apple even has promotional codes currently (as do all the other retailers).

 

You were saying?