landlord question : now that inflation makes everything 10-20 percent more expensive, can you raise the rent now or do I legally have to wait till end of contract / renewal ?

 

going from 18.000 to 20.000 acceptable ?

Obviously you need to wait.

The tenant has a contract/lease, which is legally binding on both parties, surely you are aware of that?

I would suggest that the acceptable increase would only be inline with the rate of inflation, not the mythical 10-20% more, that is if you are an ethical human

 

https://www.focus-economics.com/countries/thailand/news/inflation/inflation-hits-over-13-year-high-in-february#:~:text=FocusEconomics Consensus Forecast panelists see,predict average inflation of 1.3%.

You have a tenant under contract - thats about it

 

 

IF at the end of the contract you want to raise the rent by 2000 baht per month, you can.

But.. what If.... 

Tenant disagrees, moves out. It takes you 6 months to find a new tenant. 

You have lost money.

6 months later a new tenant moves in - they trash the place !!!

 

Never let go of a good tenant if you can help it.

Don’t let greed get the better of you. 

 

Additionally, depending where you are demand for rental property is completely independent of inflation. It doesn’t matter how much inflation has increased. It only matters how ‘in demand’ rental property is in your area and where you price yourself ‘within’ that market. 

You have a contact. Period. And ask yourself the question if it was the other way around? Would you accept, as a tenant, a raise of your rent?

Depends who your tenants are. If I was presented with a 2k baht rise pr month, I would most likely accept if the place felt unique to me, and I thrived there. But if I could get cheaper same standard, then I might move. 
 

All depends on neighbors, location, standard, facilities and worth the hassle moving to a new place. 
 

But as it looks right now thinking of the expat marked in general or the real estate marked at time being, maybe not the right time. 

As soon as the tenant gets wind of this 2k increase he will start looking around as his costs are increasing also. If you can get another tenant quicky then no problem

What is suddenly 10-20 percent more expensive, for you, on the property that you have rented out ?

 

Has the Thai council put the rates up......

I would say good luck with that, most landlords in the CM and CR cities are dropping rents to try to retain tenants.

A contract is a legally-binding document, any tenant can claim breach of contract if the landlord tries to raise the rent, unless some provision for rent increases exists in the contract.

If the OP has a reliable tenant who pays on time, and looks after the property, I would say the OP should be grateful for what he has.

1 hour ago, Jingthing said:

Obviously you need to wait.

Don't even know why the question needed to be asked.

 

 

 

 

Everything is not ten (20 lol) percent more expensive.

 

My rent hasn't been raised for years. The day it is I'm gone.

 

Must be an epic place to think the tennant need absorb your increases and expenses. Might want to go over to ddproperty and have a look at the 150k rentals in BKK before you make that genius move.

This is exactly why inflation is high. Everybody puts their prices up 10% and then discover they are no better off so put it up another 10%. Rinse and repeat. Next stop - hyper inflation....

I'm glad the OP is not my landlord what a horrible thing to suggest.

You should feel extremely lucky to have a tenant, 

don't get greedy or you may lose them, anyway

you cannot raise the rent when your tenant has

a  lease contract at an agreed price.

regards worgeordie

    

 

never wait.

 

loud noise, pay one day late, whatever....cancel the contract, plus fines!!!  then instant 5000 raise per month or evicted.

 

inflation is a problem and you must make up that money.   next time get a contract for only 4 hours, check inflation, renew.

 

glad you are not my landlord, which is impossible, and thankful.

 

come on, this is a serious question??????????    off to the temple!!!!  

10 hours ago, RJRS1301 said:

The tenant has a contract/lease, which is legally binding on both parties, surely you are aware of that?

I would suggest that the acceptable increase would only be inline with the rate of inflation, not the mythical 10-20% more, that is if you are an ethical human

 

https://www.focus-economics.com/countries/thailand/news/inflation/inflation-hits-over-13-year-high-in-february#:~:text=FocusEconomics Consensus Forecast panelists see,predict average inflation of 1.3%.

He needs to raise the rent to pay lifestyle  expenses... I wonder what shes asking?  Lkl

 

 

This may go on to disprove the saying "the only stupid question is the one unasked".

 

 

I know you can't make a raise until the lease is up????

Rent isn't directly correlated to inflation in the short term. Over the long term yes, but in the short term rent is dictated by demand - you may want to charge more, but if the tenant has other, cheaper options then they'll just move. 2000 baht a month is 24000 baht additional on a yearly contract - that's enough to make a tenant move if they find something cheaper. Personally I would move on principle because a landlord that arbitrarily raises the prices like that for no real reason is a bad landlord and who knows what else they'll nickel and dime me for later on.

I have just renewed my one year rental contract and without being asked the landlord reduced the rent by 500 baht a month.

You have to take a step back, develop some gratitude for what you have been given in this life, allow greed to take a back seat, and then attempt to raise the rent after the lease expires, if you can. It is a very, very soft rental market in Thailand. Is it worth losing a tenant? Most landlords are lowering rent at this time. Especially with condos. 

15 hours ago, mrfill said:

This is exactly why inflation is high. Everybody puts their prices up 10% and then discover they are no better off so put it up another 10%. Rinse and repeat. Next stop - hyper inflation....

The inflation we are seeing is 10% Covid related, 20% is related to supply chain and shipping issues, and 70% is historically greedy corporate gouging during a pandemic. Many corporations complain, then announce record profits. Don't be a part of that extreme ugliness. 

Thanks for the input and pov 

 

Renter came to live in my house to be near his parents in same village with his wife.

 

Rent was low to start with, 3 bed, 3 baths in good calm safe moo baan in nice location

 and paid much more for his previous condo 

Just now, Justanotherone said:

 and paid much more for his previous condo 

So you want to jack the rent because you think he has money to burn ?

17 hours ago, Justanotherone said:

now that inflation makes everything 10-20 percent more expensive

Time to help your tenant and down rent 10-20 %.

16 hours ago, Golden Triangle said:

I'm glad the OP is not my landlord what a horrible thing to suggest.

not horrible, stupid

56 minutes ago, Justanotherone said:

Thanks for the input and pov 

 

Renter came to live in my house to be near his parents in same village with his wife.

 

Rent was low to start with, 3 bed, 3 baths in good calm safe moo baan in nice location

 and paid much more for his previous condo 

So what? You set the rent.

1 hour ago, spidermike007 said:

The inflation we are seeing is 10% Covid related, 20% is related to supply chain and shipping issues, and 70% is historically greedy corporate gouging during a pandemic. Many corporations complain, then announce record profits. Don't be a part of that extreme ugliness. 

I think the scarcity and inflation is almost entirely fabricated.

 

Shipping...this was entirely manufactured crisis. Months and years before Baltic Dry index was at literally record lows. Shipping companies bankrupt. Now, shortage?

 

The reserve banks inflated all the currencies AND government borrowing meant something had to give but the manner it's all occured, the phony / proxy war with Russia. It's so transparent.

 

We are living in one of those dystopian movies where the Haves have it all and the rest are living like rats in a cage.

 

Even oil. Demand is constant. Why kill off fossil fuels given current events? Insane.

 

Russia and China are aligning and bringing all their old friends to the party eg the old non-aligned nations.

 

Just another scam to reduce the number and power of us *the eaters*. After the elite have broken the eater's back's they will turn on their minions.

 

/ Off topic, sorry

I have a house in the states. I consistently keep the rent 10% below market value. I STILL make a healthy profit and my tenants stay.

1 hour ago, Ralf001 said:

So you want to jack the rent because you think he has money to burn ?

My property management company continuously wants to jack the rent on my tenant $50/month every year at contract renewall time. I ask them "What job do you think ANY working Joe has right now that gives them a $50/month raise?" then tell them to leave the rent as is.

 

Corporate greed is destroying this planet and it leaks out into almost every facet of all our lives. It needs to stop. Humans have the greatest intellect and the weakest soul of any animal on earth.

I would be suprised if the tenant does ask for a 40% discount on renewel, that's the way it is in Pattaya