Increase of rent during fixed term of lease?

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Gringo
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Increase of rent during fixed term of lease?

Post by Gringo » Sat, 17 Jan 2009 2:07 am

We are planning our relocation to Singapore. If we sign a lease contract for a fixed term of two years, will it be possible for the owner to increase the rent during the fixed lease term ? Thx for your advice !

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durain
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Post by durain » Sat, 17 Jan 2009 2:27 am

no, nor can the LL reduce the rental if the property market crash and burn!

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resm
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Re: Increase of rent during fixed term of lease?

Post by resm » Sat, 17 Jan 2009 9:59 am

Gringo wrote:We are planning our relocation to Singapore. If we sign a lease contract for a fixed term of two years, will it be possible for the owner to increase the rent during the fixed lease term ? Thx for your advice !
No, they can't increase but unless you are getting it at a very good price now, you have the possibility of making a 1 + 1 year contract.

That would give you a chance to re-negotiate a better price after 1 year, in case rentals are crashing even more than they do already.

Make sure if you do a 1+1 contract, you pay only halve a month rental as deposit and halve a month for the agent.

That will encourage them also to give you a good price now for a 2 years contract.
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DimWit Kid
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Re: Increase of rent during fixed term of lease?

Post by DimWit Kid » Sat, 17 Jan 2009 1:34 pm

resm wrote:
Gringo wrote:We are planning our relocation to Singapore. If we sign a lease contract for a fixed term of two years, will it be possible for the owner to increase the rent during the fixed lease term ? Thx for your advice !
No, they can't increase but unless you are getting it at a very good price now, you have the possibility of making a 1 + 1 year contract.

That would give you a chance to re-negotiate a better price after 1 year, in case rentals are crashing even more than they do already.

Make sure if you do a 1+1 contract, you pay only halve a month rental as deposit and halve a month for the agent.

That will encourage them also to give you a good price now for a 2 years contract.
I think the "usual" term is 1 month deposit for every 1 year of contract - so normally landlord expects 1 month deposit for 1+1 (having said that in this climate anything is negotiable I suppose). 2 year contract usually means 2 months deposit. And in any case, 1+1 does NOT bind the landlord to lease to you if there's anybody else who's willing to lease at a higher price.

In negotiating 1+1 be aware to factor in your moving in/out cost if you end up having to move out after 1 year. It could be significant, and sometimes it may not be worth a saving of even 200 dollars per month or more (depends on what kind of rental you are paying).

Just want to warn OP of the correct expectations as it seems he/she is new to Singapore (or not even here yet).

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Post by louy » Mon, 19 Jan 2009 11:38 am

I have a stupid 2 + 1 term, signed about 4 - 5 months ago.
Just about the time of the decline in rent.

Sucks !!! Cos the rent I am paying, I can probably get a decent place in a better location.

And I am sure after the 2 year fix term, prices will probably have started to rise again.

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ScoobyDoes
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Post by ScoobyDoes » Mon, 19 Jan 2009 4:10 pm

louy wrote: And I am sure after the 2 year fix term, prices will probably have started to rise again.
I doubt it....... it will be a looooooooooong, flat bottom with minor ups and downs for quite a few years. We are still quite a bit from even hitting bottom yet.

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