Highlights
- Rental fees will inevitably increase an average of 2-10%.
- Your landlord or agent should inform you of the increase at least 60 days before.
- There are ways you can negotiate rent.
'May PERAan' is SBS Filipino's podcast series which features financial experts seeking to answer the most common questions about money and finances.
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Maaari ba akong umapela sa aking landlord kapag nagtaas sila ng renta sa bahay?
SBS Filipino
24/05/202210:59
"While you're on a lease contract, your landlord cannot increase your rent. The standard contract can be 6, 9 or 12 months," finance journalist and landlord Michelle Baltazar shares.
If your landlord does increase your rent, Michelle says there are things you can do to manage this change.
"Experts predict that rent will keep on going up to the point that it's not going to be affordable for people of a certain income - especially if you live close to the city or the train station," Michelle says.
, with Michelle sharing that properties that were at $350 a week three years ago are more likely at $500-550 a week today. Rental fees of properties in the city can cost up to $700-800 a week.
How much increase to expect
According to Michelle, expect an average increase of 2-10%. Rent can increase anywhere between $20-100 every week in the next three years.
"A 20-25% increase is quite high. Alarm bells should be ringing if this is the case.
"As a landlord, I make sure that I review the rent every year or once every two years. I don't raise the fee if I have a really good tenant. I tend to stick with the rental I've given them for that year or that contract."
Michelle shares that tenants of buildings that have been well-maintained should expect an increase in rent.
How to negotiate
Michelle says that a landlord or agent is required to give tenants at least a 60-day warning before fees are increased.
"Make sure you write down when your contract will end.
"The short answer of whether you can negotiate rent is yes."
1. Do research
"Tell the agent or landlord that based on your research, the increase in your area is only, let's say $20."
2. Sign a 12-month lease.
"If you cannot afford the rental increase, offer to sign a 12-month contract. Landlords prefer tenants who can stay for 12 months because they are assured of money coming in."
3. Offer maintenance.
"If you're renting a house and sharing, you can offer to do things like fixing the roof or maintaining the grounds if you have a friendly relationship with the agent or landlord. Remember that upkeep increases valuation or equity."
4. Send photos of a clean home.
"If you live in a unit and want to negotiate, you can send photos of how clean it is."
Michelle shares that because rental fees will inevitably increase, you may opt to look for cheaper suburbs to move to.
"For example, for people in Sydney, living in Blacktown would be different than Paddington; so if you really like where u live, u need to think about negotiation.
"If you're willing to move, look at suburbs where rental is lower and where it is still convenient for you to travel to work."
Disclaimer: The information in this article serves only as a guide. For additional information regarding your particular issue or situation, consult with legal, financial and/or tax experts.
