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Helpful Advice in Deciding to Renew Your Condo Lease

by on | Categories: Condo Advice and Tips, Investments, Real Estate Industry, Renting

Before making a decision whether or not to renew your condo lease, you will need to consider many factors. You will need to conduct an analysis whether or not renewing your lease will bring in more positive than negative experiences in your life. You will need to ask yourself, will I live happily and comfortably if I continue to live in this place? What about price increases, am I prepared to face them? According to an article by Louella Desiderio in The Philippine Star, a Global Property Guide’s global house price survey for 2013 reveals the Philippines as top fourth performer, with the price of an average three-bedroom condo units in the Makati Central Business District growing 10.56% in 2013. This growth follows annual increases of 4.85% in 2012 and 2% in 2011.

Rosewood Pointe, DMCI Property
Rosewood Pointe, DMCI Property

When you lease a condo and the time has come for you to renew your lease, you need to ask yourself some questions first before making a decision whether or not to renew your contract with your developer. Some of these questions may be easy for you to ponder on. However, other questions you need to deal with may require you to conduct a brainy analysis before you can come up with answers.

Should you renew your condo lease if your developer increases the rent?

Buying a condo means the owner has the right to give value to the property that he bought. You have to remember then that your developer has the right to charge you the amount he wishes for your lease. However, you have the right to claim what your developer can do when it comes to increasing your rent. Once you have agreed with the fixed amount of rent with your developer and you have affixed your signature on the agreement, your developer can’t increase the rent.

Do not immediately think about not renewing your lease the moment that your developer tells you he is increasing your rent. If you have already agreed on the fixed rent price upon discussing the draft of your contract, bring this up to your developer’s attention. Take the time to ask him the reason why he is changing the previously agreed upon contract terms. Gently remind your developer that condo renting is also about maintaining harmonious relationship between you and your developer.

You will see the productive results once you take the approach of being patient. Hire the condo administrator as middleman, if possible, to negotiate your talks with your developer if you still can’t settle things amicably on your own.

Should you renew your condo lease even if you are not able to get housing loan benefits?

Many government agencies provide housing loans for people who are not able to sustain their housing expenses on their own. Some people choose to avail of a condo living once they get governmental housing loans. But, what if time comes that the government cuts off support for you to get housing loan benefits? This happens intermittently because of the extensive global economic crisis that everyone is unavoidably dealing with.

If you get cut off from receiving house loan benefits, start going through your condo budget checklist to see if you can carry on and pay rent on your own. You may want to consider cutting back on spending money on miscellaneous expenses you don’t really need in life to make your budget fit in paying for your rent.

Remember that living in a condominium means you would need to deal with high expenses on a daily basis. But, in the long run, you would see your efforts and hard work in keeping your condo to be all worth it. The rewards you reap in a high-quality lifestyle are things you would not want to exchange for anything.

What if you didn’t like your developer’s condo admin’s house rules?

Before you sign the contract, make sure that you and your developer are amenable to all the terms indicated in it, including the condo admin’s house rules. However, after living in your landlord’s condo for some time, what do you do when you realize you don’t like how the house rules work after all?

Particularly, problem arises when you are the type of person who loves listening to music late at night and all your neighbor residents in the condo hate loud music. In this case, your neighbors are likely elderly people who go to bed early. You think you are all fit for condo living, until you need to deal with this problem.

When it is already time for you to renew your lease, you begin to think twice if renewing is a good idea. When you are faced with this type of situation, think about the things that you love about your condo. If you can enumerate countless things you love about it, then perhaps you can go the extra mile to rectify the problem. To avoid disturbing your neighbor with loud sounds, put up sound-absorbent panels on your walls to catch the sounds coming from your condo, thus stopping your neighbors from filing complaints with the admin.

Verawood Residences: One of DMCI Homes’ Mid-Rise Condominiums
Verawood Residences: One of DMCI Homes’ Mid-Rise Condominiums

What to do when your developer wants to forfeit your lease?

You are at the mercy of your developer when you are renting his condo. What happens when your developer, for some reason, chooses his best friend to rent his condo? What if he suddenly decides to evict you in favor of his friend living at your rented condo?

Since the condo buying market prices have been on the rise in recent years, your landlord probably feels that he is the king when it comes to managing his property. You may feel that he is pushing you around sometimes, right? If your landlord decides to evict you and forfeit your lease without any justifiable reason, hold on to your contract. If you need to, go to court and fight for your rights.

However, remember that legal battles can turn your developer’s relationship with you to a negative one. At the end of the day though, you may want to think about whether or not to renew your lease with your developer after your relationship with him has gone sour.

 

Do you renew your lease even if you didn’t develop a rapport with your developer?

Signing your lease contract may have a different meaning for you compared to your developer. There are some tenants who expect their stay at their rented place to be more comfortable and enjoyable if they become buddies with their developers. You may just be one of these tenants.

If you don’t become buddies with your developer, are you totally going to dump the many benefits of condo lifestyle and not renew your lease? Having a friend is one thing, but losing the high-quality lifestyle you have always wanted is another. Embrace the many good benefits of renewing your lease. If you and your developer aren’t enemies, is losing your condo worth it just because you are not getting the kind of relationship you expected from your developer?

 

Will joining tenant organizations help?

Condo means convenience when you hear it. The helpful advice of members of tenant organizations actually helps make you see the benefits of living in a condo you may not get to realize on your own. Joining in these organizations widens your insights and may actually make you think twice if you decide not to renew your lease.

City living increases the possibility of endless growth of this business. You would not need to worry about getting stuck in your own thoughts without getting inputs from other condo tenants. You can be rest assured that you are going to get all the support you need to help you decide whether or not to renew your condo lease.

 

What if your developer increases the service charges?

One of the must-have skills of a condo dweller is the ability to speak his mind out when there is a need to do so. If your developer increases the service charges, don’t be hasty in deciding to cut off your professional connection with your developer. Instead, be aggressive and speak your mind out. Check with the admin of the condo building if such increases are warranted. You can bring to your landlord’s attention the unfair increase in service charges once you get things cleared with the admin. Any misunderstanding should be cleared before you get impulsive and make a drastic decision.

 

What if your developer does not provide maintenance services?

When you feel that your developer is neglecting you, do several follow-ups and don’t give up easily. If your faucet is not working well and your developer fails to dispatch a plumber after your many follow-ups, talk to your developer to find out what’s going on. Lend an open ear and try to understand where your developer is coming from. Explain your needs to him as well, to make him understand things more clearly.

If you feel that your developer continues to be neglectful in this aspect, but has many other good assets, you may want to consider renewing your lease. The good outweighing the bad is always a sign that something good is in store.

Magnolia Place, DMCI Homes
Magnolia Place, DMCI Homes

What to do when you can’t pay for the condo building insurance fee anymore?

If you can’t pay for the condo insurance, you may want to consider borrowing money from family and other loved ones so you can pay for it. Otherwise, work for it. Splitting your expenses with a roommate will help you save money too and, hopefully, pay off your debts. Make sure, though, that you choose a roommate who can guarantee you timely payments of his share of expenses. The last thing you would want is to cover up for your roommate’s expenses, and have your bills piled up.

Photo courtesy of Salfalko via Flickr
Photo courtesy of Salfalko via Flickr

If you are thinking about renewing your lease at a condo in the Philippines, keep in mind that giving answers to the questions above will help you arrive at a sound decision. Since the condo prices in the Philippines have gone up in the past years, making the best decision in renewing your condo lease presents optimal financial benefits in the long run. Because the demand for condo living exceeds the supply, you may want to grab the chance of indulging in a condo lifestyle when opportunity knocks.

If you want to have a smooth experience when renewing your lease, you should make sure that your condo is based from a top real estate developer in the Philippines. When you know you are doing business with a professional and reputable developer, you don’t need to have worries that things won’t turn out right. You don’t think twice when it comes to shelling out your money for a lease, as you know the money that you will be spending will be all worth it.

 

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