ST: Can landlords hike rents by 300%? - Yes - so walk away...

[Cryingoverspiltmiik]

What a cry-baby!
they could always move to a smaller house or flat!they have a right not to live in that particular house.

June 18, 2008   
Can landlords hike rents by 300%? 
MY FAMILY has been living in rented houses in the Bukit Timah area for more than nine years now and we have just been told by our landlord that our rent is to double at the end of our lease this August.
During the past nine years, we have not seen such a huge rent increase. Ours is not an isolated case as we know many other families in many areas across Singapore facing similar or worse situations - some as much as a 300 per cent increase in rent.

How is it that landlords are allowed to do this? A doubling of rent places an unreasonable strain on a household's disposable income, disrupts families and their local ecosystems and only fills the pockets of property owners over-capitalising on current rental vacancy shortages.

Understandably, one would expect some increase in rental costs in these conditions, but a 100 to 300 per cent hike is outrageous.

Can the Singapore Land Authority or Case tell us what our rights are and how we can take counter-measures against such landlords without uprooting our families and moving somewhere else? Surely we're all under enough strain already with rising petrol, energy and food costs without skyrocketing rents.


William Norman Bremner
 

[Growing up]

This is what an open market provides for it's population of renters.  Many countries have regulated tenancy environments restricting rental increases by a percentage and/or period.  It also reflects the maturity of the market so I'm afraid this is Singapore.     

[why should you]

Pay less than market rent?

Ok, the rises are painful and we just moved for the same reason.  Nevertheless if something is worth say 10k per month (even if you think that is nuts but if someone else will pay it that is what it is worth) why on earth should you continue to rent it at 3k or 5k.

I know this has not happened but what does the LL do if interest rates tripled - ask CASE to sort the goverment or his bank out?  Nope, he wears it.

[true]

Very true.  As much as it irks me (we are also in the process of moving), if I were a landlord I would also want the maximum return on my investment.

That aside, I do wonder what the knock on effect of these huge increases in accommodation costs are on the rest of the economy - they must be significant.

[Sail Lover]

Sad to hear that, maybe the landlord is trying to chase you away.

Singapore is a Pro-Landlord country. Try to be a landlord rather than a tennant.

[Philantropist]

OP, think for a second before you answer this one: would you volunteer to pay the landlord a higher than market rate rent when your lease is up during property doldrums?

I didn't think so.

[Unbelievable]

Likewise can LLs cry and ask the govt to keep a cap on rents when they begin to decline. That is cannot  decline more than 20% or 30%
 In any case rents generally increased 80-100% and 300% would have been extremely rare.

Doesn't expats know what free market is all about or they only want it to suit their needs.

[sure they do]

Likewise can LLs cry and ask the govt to keep a cap on rents when they begin to decline. That is cannot  decline more than 20% or 30%
 In any case rents generally increased 80-100% and 300% would have been extremely rare.

Doesn't expats know what free market is all about or they only want it to suit their needs.

It still hurts though so people will complain.

Don't locals know what market forces are and understand that bubbles burst and big brother won't bail you out when no-one wants to buy your overpriced condo and the bank won't extend you a mortgage?

Maybe your question only works one way?  Both sides, in certain instances, need to grasp reality.

[LLs]

Likewise can LLs cry and ask the govt to keep a cap on rents when they begin to decline. That is cannot  decline more than 20% or 30%
 In any case rents generally increased 80-100% and 300% would have been extremely rare.

Doesn't expats know what free market is all about or they only want it to suit their needs.

It still hurts though so people will complain.

Don't locals know what market forces are and understand that bubbles burst and big brother won't bail you out when no-one wants to buy your overpriced condo and the bank won't extend you a mortgage?

Maybe your question only works one way?  Both sides, in certain instances, need to grasp reality.

LLs never complained and pleaded with the govt when prices last declined. That is why they are LLs and not tenants.

[One day]

Many of the expat tenants here are LL's in their own country choosing a steady investment with protected rights for tenancy agreements.   

Without protection in this market it is a difficult market to manage for tenants.  Every week I see tenants moving within complexes (floor to floor) because of unrealistic LLs wanting unrealistic rents.  The market normally dictates the rent however as this is a transient environment there is room for exploitation.  As this country develops it will regulate this market however I don't think it's top of their list.   

[A tenant...]

i've been renting here for a few years already, and to be honest I have no issues at all with market-driven rents.  I also have no issues with landlords choosing to set high rents and hope they nab someone at the risk of having their apartment empty for a while, their property, their right.

The only gripe I have in relation to rent levels (ie I am not talking about deposits, broken ovens, leaking aircons etc... plenty of issues there) is that agents are at times unscrupulous and dont pass full information to/from landlords.  So long as my offer is put in front of the landlord, I am ok with whatever they decide, and if I think their counteroffer is too high I simply walk away.

[sure they do]

Likewise can LLs cry and ask the govt to keep a cap on rents when they begin to decline. That is cannot  decline more than 20% or 30%
 In any case rents generally increased 80-100% and 300% would have been extremely rare.

Doesn't expats know what free market is all about or they only want it to suit their needs.

It still hurts though so people will complain.

Don't locals know what market forces are and understand that bubbles burst and big brother won't bail you out when no-one wants to buy your overpriced condo and the bank won't extend you a mortgage?

Maybe your question only works one way?  Both sides, in certain instances, need to grasp reality.

LLs never complained and pleaded with the govt when prices last declined. That is why they are LLs and not tenants.

They complained a lot but no they didn't petition the govt.  That was my point, it works both ways and you just deal with it and get/receive market level, even if it hurts.