Who's Getting The Better Deal? Renting Question

[semigoodlookin]

I am looking to rent a new place. I checked one out today with a rental price of $6000 (3 bedroom, not a bad place). However, the landlord told me that the rent will increase by 10% every six months, which of course in a year's time means I would be paying $7,200. However, that's 10% always fixed against the current rental price I presume, which is of course $6000. The more I think of it the more I think I am getting a good deal with the peso as it is. However, I am an economic desert, so am I right or wrong?

Second related question. The apartment comes with a gated parking space. I do not own a car, so can I rent this space out?

 

[glasgowjohn]

With inflation at 40% , this is a good deal.....

 

[thorsten]

It's basically a question of comparing the price increase to the inflation. If the price increase is a fixed 600AR$ per half year, you are increasing less than 20% per year (and the longer the contract goes, the less is the increase as the amount is fixed). More likely, the 10% are applied on the rent of the renting price of the last half year, which would lead to a constant increase of 21% p.a.
Either way, both increases should be below inflation now and for the foreseeable future, so in isolation it is a good thing for you. To judge the offer completely, you'd have to look how increases are handled by other owners, but I'd suspect that most landlords try to catch up with inflation.
No idea about the parking sub-rent question.

 

[Dublin2BuenosAires]

Even if the 10% is applied to each 6 month increment it's still better than 40%.

In 1 yr you'll be paying 7260 (if as above) or 7200 with increments on the original 6k. After 2 years (the standard contract length). An extra 720 a year, nothing really.

That said by the 2nd yr you could be paying almost 8k and then 6mths later almost 8800 which would be noticably more than 7200 and 7800 for your 2 twice yearly increments.

Worth clarifying your asssumption as if you are going to stay long term it's going to start racking up on you significantly.

 

[semigoodlookin]

It's basically a question of comparing the price increase to the inflation. If the price increase is a fixed 600AR$ per half year, you are increasing less than 20% per year (and the longer the contract goes, the less is the increase as the amount is fixed). More likely, the 10% are applied on the rent of the renting price of the last half year, which would lead to a constant increase of 21% p.a.
Either way, both increases should be below inflation now and for the foreseeable future, so in isolation it is a good thing for you. To judge the offer completely, you'd have to look how increases are handled by other owners, but I'd suspect that most landlords try to catch up with inflation.
No idea about the parking sub-rent question.

Thanks for that. I earn dollars (well, pounds actually) so I presume over the near future at least that $6000 + 10% rise per six months is going to look like less money to me, that's my way of looking at it.

Yes, re the parking space, I realized after posting that is entirely something I would have to discuss with the owner and there is no answer to it

 

[semigoodlookin]

Even if the 10% is applied to each 6 month increment it's still better than 40%.

In 1 yr you'll be paying 7260 (if as above) or 7200 with increments on the original 6k. After 2 years (the standard contract length). An extra 720 a year, nothing really.

That said by the 2nd yr you could be paying almost 8k and then 6mths later almost 8800 which would be noticably more than 7200 and 7800 for your 2 twice yearly increments.

Worth clarifying your asssumption as if you are going to stay long term it's going to start racking up on you significantly.

Indeed, that's what threw me about it. I will be there at least two years, could always move on then if things look like getting out of hand.

 

[Rich One]

Even if the 10% is applied to each 6 month increment it's still better than 40%.

In 1 yr you'll be paying 7260 (if as above) or 7200 with increments on the original 6k. After 2 years (the standard contract length). An extra 720 a year, nothing really.

That said by the 2nd yr you could be paying almost 8k and then 6mths later almost 8800 which would be noticably more than 7200 and 7800 for your 2 twice yearly increments.

Worth clarifying your asssumption as if you are going to stay long term it's going to start racking up on you significantly.

That is correct end first year $7260
End second year $$8785

10 % is the lowest adjustment I have heard this year more like 30 % p.a.
Some Real Estate agents request an increase of the deposit with the increase of the rental

 

[bobsnowpuppy]

Where is this apartment located?
I am renting for 6 months to see if I like the place and/or find a better one. Preliminarily, the owner and I have discussed a future 2 yr lease w/ a 10% increase every 6 months. since rent is in pesos, I think it's a good deal. Also, we agreed to the deposit paid and returned in dollars both for her protection and mine against inflation and peso devaluation.

 

[semigoodlookin]

Where is this apartment located?
I am renting for 6 months to see if I like the place and/or find a better one. Preliminarily, the owner and I have discussed a future 2 yr lease w/ a 10% increase every 6 months. since rent is in pesos, I think it's a good deal. Also, we agreed to the deposit paid and returned in dollars both for her protection and mine against inflation and peso devaluation.

It's in Versalles

 

[syngirl]

I am looking to rent a new place. I checked one out today with a rental price of $6000 (3 bedroom, not a bad place). However, the landlord told me that the rent will increase by 10% every six months, which of course in a year's time means I would be paying $7,200. However, that's 10% always fixed against the current rental price I presume, which is of course $6000. The more I think of it the more I think I am getting a good deal with the peso as it is. However, I am an economic desert, so am I right or wrong?

Second related question. The apartment comes with a gated parking space. I do not own a car, so can I rent this space out?

The parking spot is difficult. Is the entrance one spot direct onto the street, or is it a common gated parking garage for the whole building? If you need to provide any access to the building to get to the car at the most you would be allowed to rent to another person in the building. If it is your spot with access to the street direct, you can probably rent it no problem. You will have to see, most buildings however do not like people from outside having any keys into the building. We rent a spot down the street and only have access to the garage, however when they've had problems with the garage door this past weekend, it meant we couldn't even get in to get things out of the car since we have no access to the building. And with no access to the building we couldn't manually open the garage door from the inside in order to be able to get in and out, so we had to pay parking in an estacionamiento for the weekend. We have a garage, it's just not big enough for the company car, and our landlord told us he has no problem with us subletting, but in order to open the door the renter would need access to our entrance floor, which I'm not comfortable with since we have 4 bikes, tools, and all sorts of storage down there. At the most I'd probably rent it to our direct neighbour next door who has two cars and only space for one.