Readjustment Index For Rents?

[gazzola]

Hi all,

Is there any index normally used as a reference for yearly readjustments in rent contracts?

I know the general inflation rate in Thailand is around 2.5% per year, but I believe there might be a specific index for the real estate market. Any ideas?

Thanks!

[gennisis]

Would be interesting to see it.

I've been in my house for 2 years come July,the landlord is talking about a 6% rent increase....have told him No Way and he says inflation.

But my argument...not that it will mean anything to him,is that the exchange rate is down 15% so thats what I can offer !!

[Delight]

I think that it is highly unlikely that such index will exist.

There is nothing in it for the government.

Bluff and bullshit are the regular aspects of most rent reviews

Develop your skills.

Also -I doubt if he will be impressed with the currency devaluation argument. If the currency went the other way would you demand that you pay more than the 6% referred to

by gennisis

Edited May 10, 2012 by Delight

[gazzola]

gennisis,

if you're complaining about 6% in 2 years, which really seems above the inflation, what would you say about 18% in 1 year? That's the extorsionproposal I got from the owner...

Obviously I'm already looking for alternatives, because my counterproposal will be something around 0%. lol.

[Riley'sLife]

Inflation should only affect the capital value of the property (i.e. The increased value of the land and the replacement cost of the building)

Rental Values are not directly affected by inflation, but by supply and demand.

Your landlord seems not to understand basic economics, - well, western economics !!