Rental Increases In Usd

[katiem]

Hola!

I am just about to sign a rental agreement here for 2 years which is in USD (I will transfer USD from my Australian account into the owner's US account for 1 year upfront, having no garantia).

I have just read the contract, and the rent for the second year increases from US$900 a month to US$1100 a month.

I know the usual thing here with rental agreements in pesos is to factor in an increase for the second year (of about 20%), but I wondered if this same rule applies when you arepaying in USD.

Any experience with this, or comments would be appreciated. I dont mind an increase, but would like any increase to be a fair and reasonable one.

Thanks and regards
KAtie

 

[robwerwe]

Seriously I wouldn't do this!

US$ 1100!!!! Where are you renting the, Hilton?
Depends on how big the place is and how many rooms.

 

[Dublin2BuenosAires]

Sounds like a lot, are we talking penthouse here or lots rooms? For USD that is really is top whack.

 

[Matiasba]

I would never EVER sign a contract in dollars in this country, and now with the restrictions menos que menos.

 

[Fredd]

If you rent and pay in US dollars do not accept an increase for the second year. ( EVER)
lets assume you are paying a rent of $ 7.200 pesos and in advance.-
check for same characteristics of your flat ( squarre meters, location ,etc) and compare value in pesos.
this will give you a real view of price, so they dont fool you!
send me a MP if you need any help.

 

[katiem]

Of course I understand the restrictions etc, but Matiasba can you expand abit on why you would NEVER sign in dollars. As mentioned, I am paying effectively outside the country - the transaction will be from Australia to the US

 

[Ceviche]

xxxxxxxx

 

[katiem]

Ceviche, as a rough guide, does your rent increase each year by 20%

 

[robwerwe]

You can find places a lot cheaper than this and in Pesos. I pay 2500 pesos a month (mas o menos US$277).

Remember if the blue rate increases (which it will) this will effectively mean your paying more.

 

[katiem]

Thanks for your comments!

Can I again just mention, that I am paying one year in USD upfront, and Im not so concerned with the price in pesos versus dollars. I will be paying $900 a month for a great Ph in Recoleta (comparing this to a similar house in Sydney, my home city, I really dont think its a bad deal).

BUT my main question with this post was to find out if an increase in rent each year of about 20% is fair and reasonable when when paying in dollars.