Should I take a long or short term lease?
Should I take a long or short term lease?
Are you an Expat expecting just a temporary stay in the Kingdom? Are you nervous about signing long-term leases when you are not sure if you can satisfy the contract length? Are you finding that most Cambodian landlords are unwilling to have tenants stay for less than six months?
Benefits of a Long Term Lease:
- Signing a six-month or year lease locks in a rental price in a market that is growing in leaps and bounds every year. Rental rates climb 10-15% annually in Cambodia, especially in the urban and tourism centers, and as new buildings offering all types of modern amenities continue to enter the rental market, these prices will continue to rise.
- Signing a long-term lease will also grant higher negotiating power: the landlord should be more flexible because they know you will stay for a longer period of time. They may add furnishings that you request, and negotiate on otherwise set rates.
- If you end up securing a lease for longer than you are able to stay in Cambodia, many expats are seeking shorter length, sub-lease agreements. This will give you the opportunity to finish your lease agreement payments through a sub-lease with a short term tenant. It pays to check with the landlord that will be possible before signing the leasing contract.
- Alternative, the landlord may allow you to transfer the entire lease to a new tenant that you have found – if you can’t satisfy the contract.
- Remember that most owners want to build and maintain a relationship with their tenants. A long term lease allows this trust to develop.
If I do sign a long term lease, what sort of contractual and non-contractual terms can be negotiated with the landlord?
- Most importantly, the monthly rental price is negotiation – as despite what the landlord and agent may say, in the Cambodian market there is always flexibility!
- Consider requesting the installation of window screens, new or more fans, and new or improved furniture.
- Rates for services, such as water, electricity and rubbish collection may sometimes been thrown into the final rental price, at no extra charge.
- Remember, negotiation is about compromise. Consider the landlords objectives and unique circumstances – and try to compromise a rental agreement where both parties can feel satisfied.
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Source: News – Real Estate Cambodia