Renegotiating lease upon renewal

[semperfiguy]

"Taking advantage of the strong Thai baht" (or, more accurately and CORRECTLY stated: "taking advantage of the weakening dollar").

Sounds like a good time for infrastructure projects. Better now than later when oil shoots up and remains over $100/bbl along with steel and other essential materials. Not long before that happens, so they'd better get some projects on the calendar now.

Also sounds like Thailand is in for a tough bout with domestic deflation if they want to keep their tourism industry and all the jobs that go along with it afloat. Stagnation even at current levels with a weakening dollar will see lots of closures and job losses across the board if action is not taken to keep the real costs stable. Funny thing is that as with realty and other big ticket items, most Thais price goods without regard to negative exchange rate movements. Once they price something, they may increase, but rarely ever decrease.

Interesting times ahead.

Since retiring to Udon in June this year, I have lost 10%+ of the purchasing power of my SS check. When my house lease renewal comes up next year, what are my chances of negotiating a reduction of the rate in light of the weakening dollar against the Baht? For those of you who have been here for many years and have already survived one or more of these up and down cycles with the US$ exchange, what has been your experience with landlords and lease rates in a down cycle?

[parrot]

"what are my chances of negotiating a reduction of the rate in light of the weakening dollar against the Baht"

Slim to none but it can't hurt to ask. AEK Udon, McDonalds, and the local noodle shop operate in baht......25/1 or 50/1, it's all the same.

Reminds me of a story.....Mid 1997, the baht is trading 25 to 1. American guy owns a piece of land in Nongwahsaw. Another American agrees to buy it for 1.2 million baht. Before the paperwork is complete, the baht dives. The owner now wants to up the selling price. The intended buyer told him to stick it.

[nkstan]

I agree,not much chance!Your landlord would need to feel so financial desperation relative to his personal financial situation and a concern about vacancy time if you didn't renew.He has to deal with inflation,not exchange rates!
So discounting any empathy to be found and sympathy for a falangs plight being a cultural assurdity,you might be looking at an increase rather than a decrease!

The great thing is that whatever you pay,rent is the best deal here compared to ''back home''!

[arjay]

Semperfiguy, I tend to agree with the views expressed above.

I'm not clear from your post whether you are referring to a relatively short term lease - e.g. one year, or whether you are referring to the renewal of a long term lease (such as 30 year type lease). I assume the former.

The only thing I can think of is that you try and negotiate a reduction on the basis you are an existing tenant, - proven and tested, who caused no troubles and looked after the house well. And/or by offering to pay the rent in full up front and ideally for a longer period. I did that at a previous house in Udon, some years back. The Landlord was tempted by the fact that she would get the full year's money up front, so agreed a reduction on the previous year (or half year)'s rent.

[Texpat]

The value of your dollars means little to nothing to a Thai renting his house to you.

Would the homeowner reduce the rent for a tenant that fell on hard times? Lost job, death in the family...?

I doubt it, but you don't know until you ask.

The USD was 40/1 on 20 May 06. That's a 30 percent nosedive in less than five years -- not including Thai inflation.

[RLTrader]

Well semperfi guy , think your chances are excellent, but don't say anything about the dollar.

This is what I did years ago.

Rented a place, but required the landlady, install about 40k worth of stuff (my guess), she came back with an increase of 1k per month, plus 6 months in advance, which was ok with me.

The following year I had seen places with the same improvements for less and in the same area. So I told her and we ended up settling with a 1.5k decrease rate. Everyone was happy.

The following year I ask her if ok to go to a month to month rent, no lease. She also ok'd that. I was building at the time, and stayed 5 or 6 months, and kept her informed, and help in an ad vert on this site and she rented it very soon after I moved.

So, I would think your chances are good, if you are paying over other places of equal value in the area, and you are on good terms. Look they don't want to lose a good tenet that pays on time or in advance.

good luck

[wazza]

Once the Dollar appreciates, I presume you will offer to increase the rent up accordingly ??

Why should the owner discount to you, there business is in Thailand, they bank using THB.

The only thing they might do is, reduce it a little, if u pay upfront more.