At the end of the lease period, it is not uncommon for landlords to increase the rent for the flat on rent in Bangalore. In most cases, the landlords demand an increase of 10% on the rent for the rental house in Bangalore. There are many reasons why the owner of the property raises the monthly rental for the tenant.
Cost of maintaining and owning the property
If landlords do not increase the rent on a regular basis and keep the rent steady for a number of years, there might be a situation where the owner would realise that it is becoming difficult to afford the rise in prices, which could be because of increase in property taxes, market rate of the property, and the maintenance cost. In such cases, he may have to shoot up the rent to over 25% in some cases, which would not be accepted by the renter. He may also fear losing out a good tenant because of a sudden increase in rent. To avoid such situations, the owner increases the rent slowly, year on year.
Improvements in the house
The landlord may decide to make some significant improvements and changes in the apartment. This could include replacing certain appliances, fitting an AC, or painting the apartment. Your rent thus increases since the landlord needs cash to make these improvements, which would increase the market value of his property as well as offer you a better place to stay in.
Your neighbourhood may not have been a very posh locality five years back but has seen some major developments in these years. As it is now an upcoming location and gives you easy access to your daily requirements, there is a rise in demand for the property. In such case, the landlord demands an increase in the rental. As a renter, however, you may negotiate with the owner on the percentage of increase in the monthly rental that he or she demands. If you have had a good relationship with the owner and have been paying your rents on time and are not a troublemaker, chances are that the owner would be open to some bargaining. Owners would prefer to have a reliable tenant than risk going for a new occupant who may not be as good as you. If you decide to vacate the house, the landlord may not be able to find a renter soon, and this could mean losing out on a few months’ rent. Also, if there are a lot of homes lying vacant in your locality and are up for rent, you can negotiate with the owner. Most owners would fear to lose a good tenant and may agree to bring down the percentage increase in the rent. NestAway has a number of rental properties listed on its websites. The owner may choose to increase the rent after the lease period as per the market rates. Rents that are increased slowly do not cause a lot of burden on the tenant and thus works to the advantage of both the landlord and the occupant of the rented house in Bangalore.