I have one of my shoplots for which the rent for ground floor and first floor is a lot less than the current market value. These tenants have been with us for the last 20 years. And the rent was not increased in a really long time so much so that all the other tenants in neighboring shoplots pay more . When I approach the tenants , they make a big fuss but they do not want to leave at the same time . I don't want to pressure them but I feel I need to increase the price as per market value . Anyone has any tips or ideas how I can increase my rental ?

This post has been edited by drbone: Apr 29 2017, 03:24 PM

no tenant is going to be happy to be paying more so the big fuss..

Well you can tell them - ok, since you have been renting for a very long time but the market rate has increased to xxxx
but I will increase to slightly below market rate just for you ..

so the options are

I) increase
or
2) terminate

You have to also consider their payment records, not for them, but for you.. if they have been paying on time, it may not be worth it to terminate since you dont know the next tenant would be paying enough... also would you even have a tenant to replace them? Theres a corner mamak that was closed down in Oasis Ara Damansara and i was told that they moved/closed because the owner wanted to increase rent and they could not afford the new rent so they had to move.

It has been almost a year now and there still hasnt been any tenant there. Would the increased rent cover the loss of opportunities?

it depends...if its a significant amount of increase then you might consider to terminate...otherwise...just let them be and save the hassle..lol

They were paying much lower than market rate for more than 10 years and I decided it would be fair to increase.

Get your partner to serve the tenant notice that ze intend to revise rental to market rate. And you wait for the tenant to comes to you for discount.

Managed to increase the first floor rental. Now waiting for ground floor occupant to accept my offer.
😀
Don't wanna increase too high also since they have been very good tenants for the past 20 years.

This post has been edited by drbone: May 16 2017, 11:44 AM

Any update to your rental increase pls ? Have you managed to increase the ground floor rental ?

Yes I managed to increase the rental. Laid it out on the table for them and they understood. In fact , the ground floor tenant also has a shoplot a few doors away and even be in increased the rental for his property ! 😂

Haha,... cheeky buggers they are,... they increased their rental onto their shoplot and pretended not to know that it's right to increase,...

Tq, dr,.. congrats,...

Yeah , because I went and spoke to his tenant ( I did not even know he had his own unit) and the tenant told me that he himself increases the rent on a 2 yearly basis.

caught him there,....