Rental Increases In Usd

[citygirl]

Price aside as it's not any of our business
1) I wouldn't pay a year in advance. 6 months, no problem. 1 year seems excessive. If you are, I would be negotiating a big discount on the rent.
2) While 20% is standard increase for peso rents, not so for dollars.
3) It's a PH so there are no building fees. Is the landlord covering all the utilities as part of your rent or are you? If the landlord is, s/he will want/expect some kind of increase in the rent as guaranteed there will be an increase in the cost of services. If you are paying all of those directly, definitely no increase in year 2.
4) Okay, I know it's none of my business but 900 USD a month is +/- 5000 pesos a month. Which is more than reasonable for a furnished place but for an unfurnished, well, that's a lot. It sounds like you've been here a while so I'm sure you know but hoping that the PH is at least a 2 BR with lots of amenities for that price.

 

[robwerwe]

Sorry, this made me laugh! I am German, by the way! Yes, you will find a 1 bedroom apartment in Berlin somewhere in the city, somewhere! The rent in Germany is always without any expensas. You pay minimum 300 Euros a month just for heating, electricity and other building costs. I don´t know your connections, but the prices I know are a bit different. In Barcelona, Berlin or other cities of Europe you pay about 1000 Euros for a 2 bedroom apartment in an acceptable neighborhood without doorman, pool and maid! That is about 1300 USD.
And by the way: BA has a lot these cities do not have. And: We have a big crisis in Europe! In Spain more than 50% of the younger people are unemployed, everyday stores, restaurants and bars are closing…

I have friends renting there for much less. All depends on what kind of place you want I suppose.
I'm not too sure what BA has that is so special, but yeah I take your point about the winter in Berlin.

 

[GS_Dirtboy]

I would 10th ... or 11th the idea to NOT pay your first year rent up front in Dollars.

1. If something goes bad (and IT WILL) then you are SOL in getting any kind of leverage to fix it.

2. You have the Dollars. They want the Dollars. That puts you at an advantage in negotiating - unless you've already told them that you just love their gorgeous little place.

 

[germano]

In Barcelona, Berlin or other cities of Europe you pay about 1000 Euros for a 2 bedroom apartment in an acceptable neighborhood without doorman, pool and maid! That is about 1300 USD.

1300 in Berlin? I Lived there a couple of years ago and paid a lot less ... and it was in a decent area of Friedrichshain.

 

[French jurist]

12th one to say it then: don't pay upfront 1 year in dollars (in pesos, ok).

Don't really know the short term rental market (although you'll sign for a longer period) but I know for sure that, right now, the landlord wants more your dollars than you want the place because you like it (hence the price itself is not an issue, since you like it).

I didn't read the whole thread but:
-Have you met the landlord?
-Are you sure he/she's really the owner of the place? (intermediary?)
-What happens if the landlord dies three days after you paid?

Don't know since how long you're here but right now dollars is like an icecream in the desert.

Furthermore, the raise is not really justified and here is what you can tell the landlord:
-You pay in advance so you make the landlord win on inflation
-There's indeed inflation in Argentina, but for rentals it's not 20% yearly (hence, he/she should disminish the price by 20%, not raise it = that's how I negotiated my own rental contract, in pesos)
-You also can tell that you know a bit the Argentinian situation & you suppose the dollar rate will spike after the october elections, etc.


In short, you like the place, no problem with the price, but at least negotiate a bit because that's how things are here

 

[sesamosinsal]

2. You have the Dollars. They want the Dollars. That puts you at an advantage in negotiating - unless you've already told them that you just love their gorgeous little place.

Right, telling the landlord you have dollars (IF there is a convenient way for them to be exchanged) is a plus. Use this to your advantage, and negotiate the months you'll pay in advance. A year is excessive, but try to find a happy medium. Often times we vilify the apartment owners on this forum—and yours seems to live up to the stereotype given the 20 percent increase on dollar rent—but many tenants can be just as abusive and dishonest. It's a vicious circle.

 

[Rich One]

Price aside as it's not any of our business
1) I wouldn't pay a year in advance. 6 months, no problem. 1 year seems excessive. If you are, I would be negotiating a big discount on the rent.
2) While 20% is standard increase for peso rents, not so for dollars.
3) It's a PH so there are no building fees. Is the landlord covering all the utilities as part of your rent or are you? If the landlord is, s/he will want/expect some kind of increase in the rent as guaranteed there will be an increase in the cost of services. If you are paying all of those directly, definitely no increase in year 2.
4) Okay, I know it's none of my business but 900 USD a month is +/- 5000 pesos a month. Which is more than reasonable for a furnished place but for an unfurnished, well, that's a lot. It sounds like you've been here a while so I'm sure you know but hoping that the PH is at least a 2 BR with lots of amenities for that price.

GityGirl ... Sure you meant +/- 7000 pesos as month .. Don't frighten me!

Some landlords are excluding the expensive electric bill from the fixed rental amount, for non-subsidized areas, the ABL is a fixed amount, so is the gas and water.

 

[expatinowncountry]

On the specific question posted, I think the price change in dollars from year to the other is too high. It gives you an implicit inflation rate in dollars that is way too high. If something, in the last few months the (blue) exchange rate has devaluated more than the inflation rate, reducing domestic inflation in dollars. Also when you pay in advance a year, there is the opportunity cost of the interest lost on that money so you are actually paying a bit more than the nominal amount stated in the contract.

On paying one year in advance, it is a common practice in many countries. I have to pay a year in advance in Dubai and it was a hell more than USD 900 per month. In other countries you do not pay a year in advance but it is extremely difficult to rent for an expat without the support of your company (specially if you illegally overstaying) or you have to pay some sort of housing insurance policy.

On the rental price, I really do not understand the comments of most people. Yes, you can rent for much less and for much more but everything comes to what you get for it, your budget and your living standards. USD 1K for a nice apartment in Recoleta seems right to me, the same way that a PH in Palermo for a large family will cost you more than that and sharing a two bedroom with ten expats will cost you less.

 

[Julia2]

1300 in Berlin? I Lived there a couple of years ago and paid a lot less ... and it was in a decent area of Friedrichshain.

The rents are much higher now in Berlin, everybody is complaining about the rising rents here. And: We have been talking about an apartment in Recoleta for 900 Dollars and the question if one could live for that money in Berlin or Barcelona. Of course you will find cheaper places in both cities as you can find cheaper places in BA! But for 900 Dollars you will find much more luxury in BA than in Europe. In Berlin that is now the average Price of a normal 2 BR apartment in the hot areas; in Barcelona it is even a cheap one somewhere. If you pay 900 or 1000 Dollars for an empty apartment in BA, you will be able to find a relay nice maybe with pool and Gym. Forget that in Europe, it is hard to find such places and they are very expensive.
In general it does not make sense to compare; I would not have mentioned that, but I can´t hear that complaining about BA and glorifying other places. Everybody who thinks that BA is 3[sup]rd[/sup] world and that living in Europe or somewhere else is much better, should go. I have been moving from BA to Europe one year ago, I see a lot of things now different. But that is not the topic of this thread, so let´s stop here.

 

[katiem]

Just an update to anger, amuse or disgust everyone (as your want may be), the owner still insisted on an increase for year 2 and so i have politely told her "chau" and will continue my search

Thanks everyone for your comments, and Happy Friday!