BKK - Anyone asking for big rent decrease?

[eppic]

Okay, with so many expats having left and none arriving there is no doubt that many rentals are now empty.

 

I was speaking to a Thai friend today and she told me the Thai blogs have been discussing many asking landlords for huge discounts, as much as 50%.  I also have a friend stuck in the US that was quickly offered (and accepted) a 50% discount to continue his lease while he is locked out of Thailand.

 

The reality is that it should be virtually impossible for an owner to lease out a place without a big discount, but to the surprise of no one, if I scour the various agency sites there is virtually no discount to be found - same asking price as always.

 

Our lease is ending and my preference would be to stay in my current place but am considering asking for a discount.  Of course, one risk is landlord finding an excuse to keep my deposit at lease termination, so I am also also open to moving, but as I said there are no obvious large discounts on offer.

 

FWIW, we are in a premium property and not sure how badly they have been impacted in relation to the budget sector (my friend's 50% discount was at the new Magnolias Ratchadamri / Waldorf, top end).  

 

So, anyone with firsthand (or secondhand) experience of attempting to reduce rent recently?  (I can check with agents of course, but their priority is themselves and landlords)

 

 

[richard_smith237]

What I get from this is... you don’t want to move, but you want to take advantage of the climate and pay less rent - Fair enough, ultimately its just business. 

 

You have concerns your landlord may keep your deposit if you move out. 

If he’s going to do that, he’s going to do that for whatever reason you move out whenever you move out.

 

Thus: have a look at other places, negotiate - perhaps the potential loss of deposit on your existing place is covered within the first few months of ‘new place rental’.

 

Take a look around, have a solid Plan B (or A) then discuss with your landlord, see where they are. 

 

 

 

[timendres]

47 minutes ago, eppic said:

The reality is that it should be virtually impossible for an owner to lease out a place without a big discount, but to the surprise of no one, if I scour the various agency sites there is virtually no discount to be found - same asking price as always.

Unless you are searching in Thai, and viewing Thai websites, you will never see a discount for anything. Once I started operating in Thai, my life got much cheaper.

[edwardandtubs]

26 minutes ago, timendres said:

Unless you are searching in Thai, and viewing Thai websites, you will never see a discount for anything. Once I started operating in Thai, my life got much cheaper.

You make it sound more difficult than it is. Anyone can look at the Thai rental sites with their browser auto translating and see what the going rate is. Most condos have an onsite letting agency and while you may pay a slight premium you are at least assured of getting your deposit back.

 

As for "seeing" a discount, the rent is always negotiable so what do you expect them to do? Make a big announcement about some special promotion or something? Make the landlord an offer which is half of his asking price and see what his reaction is. My experience of Bangkok landlords is that they'd much rather have their property empty and wait for the perfect tenant than offer significant discounts on the rent. You can always get something like a 20% discount on their asking price though.

 

In these uncertain times I'd rather have the benefit of a rolling monthly contract than make a new 12 month one so I'm happy to stick with my current landlord at the price I agreed last year.

[farang51]

This is hard times, also for the landlords. I am on a pension; still, I wouldn't dream of using this situation to get a lower rent. Actually, I recently paid for six months before I had to.

[madmen]

The end result is entirely predictable. The landlord will of course take it personally and give a firm no or maybe even kick you out 

 

Ask but also be prepared to leave. Thais rarely give discounts and 50 % ain't gonna happen. I'm guessing you know this already and that's why you are here asking for advice instead of crunching the owner already 

[ukrules]

I will make a suggestion. Send a message to your current landlord asking him to clarify something, this is the question :

 

"How many days notice do I need to give you to cancel the rental contract"

 

The answer to this question will vary but I do suggest you give it a try.....it can be very revealing and/or rewarding.

[FritsSikkink]

11 minutes ago, ukrules said:

I will make a suggestion. Send a message to your current landlord asking him to clarify something, this is the question :

 

"How many days notice do I need to give you to cancel the rental contract"

 

The answer to this question will vary but I do suggest you give it a try.....it can be very revealing and/or rewarding.

He only think that you are stupid as it is in the rental contract.

[ukrules]

33 minutes ago, FritsSikkink said:

He only think that you are stupid as it is in the rental contract.

Oh no, it's sending a message - the message is very well understood by the recipient.

 

You don't have to ask for a discount.

 

Try it and watch discounts flow your way.

[ezzra]

It depend, as a landlord, if the tenant just looking for a free ride because of the covid situation i'll tell him to go jump in the lake and move if he desire to do so, but if his livelihood got effected my the Covid situation i will work out something beneficial to both of us... 

[dimitriv]

3 hours ago, eppic said:

asking landlords for huge discounts, as much as 50%

 

You can also do it in a different way. Tell your landlord that you are having a difficult time at the moment, and that you will probably cancel the rent because you have to look for something cheaper.

 

It is like asking for a discount, but in a different way.

 

 

[edwardandtubs]

17 minutes ago, dimitriv said:

 

You can also do it in a different way. Tell your landlord that you are having a difficult time at the moment, and that you will probably cancel the rent because you have to look for something cheaper.

 

It is like asking for a discount, but in a different way.

 

 

No landlord wants a tenant who's struggling to pay the rent though. He'd probably just say good luck and goodbye.

[dimitriv]

5 minutes ago, edwardandtubs said:

No landlord wants a tenant who's struggling to pay the rent though. He probably just say good luck and goodbye.

 

I think looking for something cheaper if money is tight shows great responsibility.

 

I know that in my condo building in BKK there are a lot of advertisements at the reception. Prices went down at least 1/3 in the last half year. Owners know that. You have something with 1/3 discount in a minute. And moving means just putting your things in the elevator to another floor.

 

The owner knows...  If he lets you go he has to give the discount anyway, and probably also lose a couple of months rent. Because despite the discounts a lot of condos are for rent already for months.

 

 

[luckyluke]

I got a 20% discount on my usual stay in Thonglor, and no deposit 

I rent for +/- 3 months periods. 

On AirBnB I see discounts up to 50%.

Here in Pattaya I got 10% on my usual rent, and only 5000 Baht deposit instead of 1 month. 

Also a 3 month period. 

I suppose I can get a better deal when renting longer time. 

[Bender Rodriguez]

I check a big block of small condo's next door online

 

price is about the same, maybe some deducted 500 baht

 

hundreds units for rent

 

was overpriced to start with ... selling 1.75 than 1.85 than 1.95 M baht for a shoebox of 25 m2 

[SbuxPlease]

I just moved to another Bangkok condo and was able to negotiate 30% below what I saw this room listed for online. It had been vacant for around 6 months. I also didn't ask for any other upgrades or concessions, I agreed to accept it as-is. The landlord instantly agreed. So perhaps I could have gone further, but I feel happy about this.

 

In my experience there are two types of property owners in Thailand. Those who make money by renting, and those who don't need any more money. The latter group couldn't care less that their 200k/month house has been vacant for 3 years so efforts to negotiate are fruitless. Those families have probably owned the land for decades free and clear. So... you want to find the guys who actually need to get paid from their rentals and hate to see them empty.

 

 

[Ireland32]

Im doing Air B&B monthly big Savings and lil  deposit , I was asked for 1000b deposit only , Lovin It , 2 br 2 bath Sea view 100sg meter 11,000 a month in Pattaya or Jomtien 

[Ireland32]

14 hours ago, madmen said:

The end result is entirely predictable. The landlord will of course take it personally and give a firm no or maybe even kick you out 

 

Ask but also be prepared to leave. Thais rarely give discounts and 50 % ain't gonna happen. I'm guessing you know this already and that's why you are here asking for advice instead of crunching the owner already 

I was going to leave my condo and owner said no have to pay rent just go snd do your tours and traveling and come back when you want , I m paying 11,000 a month in Korat , unbelievable I went touring for two months didn’t pay a baht now back in condo , I’ve never heard of a Thai doing that 

[peterdarby]

I pay 19K in a private let. I asked the landlord if he would reduce the rent until the state of emergency is over, suggesting 15K. He said OK. That was it.

[Surelynot]

Supply and demand...get whatever discount you can......imagine there was a severe shortage of apartments....what do you think the landlord would do?...he would screw every last satang out of you.

 

No discounts advertised...you have to haggle face to face....I got my condo rent down from 26,000B to 17,000B only to find my neighbor got his for 14,000B.

 

I'm also a landlord by the way.

[bwpage3]

12 hours ago, ukrules said:

Oh no, it's sending a message - the message is very well understood by the recipient.

 

You don't have to ask for a discount.

 

Try it and watch discounts flow your way.

A wild guess at best.

 

[Max69xl]

13 hours ago, FritsSikkink said:

He only think that you are stupid as it is in the rental contract.

It's not always in the contract, so the question is not stupid. 

[karunasup]

Asked a Thai RE agent to help. Found me similar size 2bdr apt in the same complex, for about 25% lower. The previous landlord offered only 9% lower. 

[Pancho]

I cruised around patong/ Bangla rd. on my bike today. No exaggeration, thousands of empty  bars,hotels, restaurants,etc. open, unlocked doors, like a war zone ( actually it IS a war zone), to but your big boy pants on and project, time, and cost of bringing it to its formal glory are daunting. A real eye opener. Like “ Blade Runner, on a cheap budget, in the light of day.

 

Sobering. So wo to he who says he can “ fix it”. Quite a time to be alive.

I still think I made the right move staying in my adopted home, as opposed to the true madness in the west.

This is turning out to be a gift, where I have come to be a bit closer to my beautiful hosts.

[tomazbodner]

My landlord isn't doing well, so I offered to increase rent till end of the year to help.

[eppic]

16 hours ago, ezzra said:

It depend, as a landlord, if the tenant just looking for a free ride because of the covid situation i'll tell him to go jump in the lake and move if he desire to do so, but if his livelihood got effected my the Covid situation i will work out something beneficial to both of us... 

Wow, you would be a bankrupt landlord very quickly.  There is virtually no chance he could rent the place at anywhere near my current rent and certainly not for several months.  Most likely scenario is several months lost rent, then accept a 30% haircut to get a tenant.  As I mentioned, my lease is expiring, so you would tell a tenant to <deleted> off if he asks for market rent at time of contract renewal? Just sayin', but maybe not the wisest decision financially.

 

 

16 hours ago, dimitriv said:

 

You can also do it in a different way. Tell your landlord that you are having a difficult time at the moment, and that you will probably cancel the rent because you have to look for something cheaper.

 

It is like asking for a discount, but in a different way.

 

 

My Thai friend also suggested I do this but it does not reflect reality (my primary income is investments, zero impact due to Covid) and I am unwilling to lie / manipulate to get a discount.  That's my weakness, I suppose, but I would prefer an honest approach.

 

3 hours ago, Surelynot said:

Supply and demand...get whatever discount you can......imagine there was a severe shortage of apartments....what do you think the landlord would do?...he would screw every last satang out of you.

 

No discounts advertised...you have to haggle face to face....I got my condo rent down from 26,000B to 17,000B only to find my neighbor got his for 14,000B.

 

I'm also a landlord by the way.

No question this is the case, I would have to pay more in a tight market... as another poster said, it's just business. 

 

18 hours ago, madmen said:

The end result is entirely predictable. The landlord will of course take it personally and give a firm no or maybe even kick you out 

 

Ask but also be prepared to leave. Thais rarely give discounts and 50 % ain't gonna happen. I'm guessing you know this already and that's why you are here asking for advice instead of crunching the owner already 

My Thai friend suggested I ask for a 50% discount (and indeed I know of cases of this happening), but I immediately rejected the idea.  At most, I would ask for a 10-20% discount.  No doubt I could do better by moving, and that is an option since my lease is expiring, but I am a bit too lazy and complacent for that to be my preferred option.

 

I am not naive about the reality here, I was just trying to gauge the general viewpoint on this and I have no intention of being highly mercenary by asking for a huge discount

 

BTW, my landlord is wealthy, president of regional logistics company (everyone here would know the name), and owns multiple units in my high-end building and no doubt others as well.  I have never met him, he has his assistant do all of his business after he cut the agent out of the loop at our first renewal.

 

Most likely I will extend my contract one month and use that time to shop around and test the market.  Then I can either simply move if I find something I prefer, or at least negotiate from a position of strength.

 

And of course, if requesting a discount, I won't rudely demand it, I will simply let the landlord know I am aware that the market has softened significantly and ask if he is willing to offer rental concession.  If not, I will give notice and see if he changes his stance.

 

Thanks for the replies, I am most surprised by the people saying they are willing to subsidize their landlord. I am not so soft-hearted, but not willing to be a cold-blooded mercenary either (the money isn't that important, but I don't like to pay above market for anything).

[edwardandtubs]

There's a sign up in my condo building saying foreigners need to produce a negative Covid-19 test result if they want to rent so if the landlords are desperate the condo management haven't got the message.

[ukrules]

2 hours ago, edwardandtubs said:

There's a sign up in my condo building saying foreigners need to produce a negative Covid-19 test result if they want to rent so if the landlords are desperate the condo management haven't got the message.

Photograph it and send it to that Barrow guy????

[aldriglikvid]

What are some websites that Thais themselves use for renting? 

[ukrules]

7 hours ago, bwpage3 said:

A wild guess at best.

 

No, it's not a guess, not at all. Guess again ????