Thai landlord wants to increase the rent by 20% :(

[falangUK]

Hi all,
What is the average % rent increase in Thailand and in Chiang Mai?
Rather strange considering the demand is at an all time low, and there are many abandoned houses in the area. 

The best option will be to move, but with the amount of furniture and other things that have accumulated over the years, it's a herculean task.

Is there a way to calculate rent increase per annum?
What would be a fair amount?
TIA :) 

[scubascuba3]

Find an alternative place you like, then say no to the rent increase, you then have leverage

[tifino]

hmmm... yeah! considering that Thailand's current CPI is sitting at 1.4% 

[johng]

If the scallywag says 20%  increase then offer 20%  less than you are paying now...there must be thousands of empty places to rent around the area now  anyone asking for a price increase is just  "taking the Mickey"

 

There will also be a lot of "men with a truck"   ready to help you move  for a very small  consideration.

Though it would be wise to find a few alternative places to rent before  putting the ultimatum to the landlord

 

[Exploring Thailand]

Find a cheaper place and tell the landlord you are leaving. When he changes his mind and tells you that you can stay, tell him you'll only stay if he reduces the rent to match the other place you found.

[worgeordie]

He must be joking, no way this is the time and situation to be asking for more.

it's a renter's market just now, call his bluff,

regards worgeordie

[bkk6060]

Pay less or move.

Also, lesson learned rent a place furnished accumulating "things" here is just a hassle and unnecessary.

[Henryford]

Depends what you are paying now, is it super cheap. When was the last rent increase?

[Surelynot]

Move, or at least threaten to.............our landlord has asked if we would stay and offered a rent reduction.........she is just trying it on.

[falangUK]

7 minutes ago, Henryford said:

Depends what you are paying now, is it super cheap. When was the last rent increase?

Before this proposed 20% hike >>

Currently paying 100% more compared to my immediate neighbour, 87% more compared to other neighbours.

last rent increase was 5 years ago.

also we have invested in improving the bathroom, roof, etc

[Surelynot]

1 minute ago, falangUK said:

Before this proposed 20% hike >>

Currently paying 100% more compared to my immediate neighbour, 87% more compared to other neighbours.

WHAT?.....I have some property to rent.....I would love you as a tenant......

[BritManToo]

14 hours ago, falangUK said:

What is the average % rent increase in Thailand and in Chiang Mai?

Since 2009 there have been no rent increases in Chiang Mai.

Only one landlord ever asked for more (7k to 8k), but I moved out and the house was empty for the next year.

Since COVID rent prices tend to go down, as half the rental properties are empty.

 

I'd move on and try to get a cheaper rent for a better property.

[cmarshall]

Start by forgetting the idea of a "fair" rent.  No one wants a fair rent.  Renters want to pay less and landlords want to collect more.  We had difficulties last year getting some changes for our apartment which we had been renting for nine years.  Landlord refused to agree to requested changes so we moved to another unit in the same building for 30% less rent.  Our former apartment is still unrented, of course, because foreigners are not coming to Thailand. 

 

Thais think of property as a store of value more than as a source of income.  Strange, but that's how they see it.  And landlords consider themselves socially superior to renters.  So, sometimes they make stupid choices.

[falangUK]

4 minutes ago, cmarshall said:

Start by forgetting the idea of a "fair" rent.  No one wants a fair rent.  Renters want to pay less and landlords want to collect more.  We had difficulties last year getting some changes for our apartment which we had been renting for nine years.  Landlord refused to agree to requested changes so we moved to another unit in the same building for 30% less rent.  Our former apartment is still unrented, of course, because foreigners are not coming to Thailand. 

 

Thais think of property as a store of value more than as a source of income.  Strange, but that's how they see it.  And landlords consider themselves socially superior to renters.  So, sometimes they make stupid choices.

I am a landlord in the UK, I reduced the rent by 15% (while absorbing the increased management costs, letting fees etc)

[Surelynot]

Just now, falangUK said:

I am a landlord in the UK, I reduced the rent by 15% (while absorbing the increased management costs, letting fees etc)

Supply and demand innit......I am sure if the demand was high and supply low it would have been a 15% increase.

[falangUK]

2 minutes ago, Surelynot said:

Supply and demand innit......I am sure if the demand was high and supply low it would have been a 15% increase.

Combination of factors mostly due to the incompetent letting agents + COVID-19

[CharlieH]

I would just tell him, increase and I will look to move ! 

The landlord is possibly suffering in other areas as many are and is wanting "the rich ferang" to subsidise his other loss.

Be firm, be polite but mean it ! 

Find another suitable place first, show him the details if needs be, but stand your ground. It may be worth the hassle factor, and "save face" for him to offer him a compromise that you can live with. Only you know what that is.

[Alotoftravel]

He might just want you to leave as another polite way to say bye 

[Tropicalevo]

I do not know the market in Chiang Mai but rental prices in the area on Koh Samui where I live are down between 20% - 50%.

I also rent a small Thai place to use as a store and a 'rest area' for the staff and without even asking, the Thai owner dropped the rent 20%.

[sqwakvfr]

I estimate the occupancy rate at my complex is probably between 30 to 40%.  There are 10 units on my floor and only three are actually occupied.  There are some floors where all the units are empty.  This is typical of many of the apartment and condo buildings in Chiang Mai.  So thinking logically(this goes against the "Thai Way"). a rent decrease would be a sound business strategy???  

 

I guess the business terms "better to have some revenue rather than no revenue" is not taught in the Thai Education system?  An empty unit generates no revenue but the carrying costs persist.  

 

I wish the landlords good luck on demanding a 20% rent increase?  

[Chris.B]

 

20% of what? ????

[lopburi3]

24 minutes ago, Alotoftravel said:

He might just want you to leave as another polite way to say bye 

Valid point - are neighbors foreigners or Thai?  

[from the home of CC]

pony up or get out, up to them..

[Lemonltr]

Move. It's dual pricing or he wants you out. Best of luck in getting back your deposit. 

[JimmyJ]

You are horrifyingly late in demanding the landlord lower the rent.

 

Show him ads offering more space/more facilities/lower prices.

 

Mention the rent others nearby are paying.

 

Perhaps you thought you were buying goodwill by knowingly overpaying plus paying yourself for improvements  to his property (!!!???) - it appears you bought a negative 20% with your overpayments.

[tonray]

3 hours ago, falangUK said:

Currently paying 100% more compared to my immediate neighbour, 87% more compared to other neighbours.

Glutton for punishment ?

[Silencer]

My rent went down initially 40% then an additional 15% since Covid started, 6 month contracts (Samui). Plenty of supply, no demand.

[Delight]

 If you are happy with your rented accommodation then I would offer him 10%

Suspect that he will take it.

Agree a timescale before the next rent review

You -I think-are a good customer

[Salerno]

14 minutes ago, Delight said:

 If you are happy with your rented accommodation then I would offer him 10%

 

A 10% reduction?

[Albert Zweistein]

10 hours ago, scubascuba3 said:

Find an alternative place you like, then say no to the rent increase, you then have leverage

AND demand a discount.