My landlord lost thousands of dollars in a year after raising the rent by 40%

A space for rent in Ho Chi Minh City. Photo by VnExpress/Phuong Uyen

Our contract capped rent increases at 10%, but the landlord refused to negotiate. Not wanting to move, I offered VND20 million per month, but they rejected it, leaving me no choice but to find a new place.

Eventually, I secured a new location for VND15 million per month, a more affordable and practical choice in a sluggish rental market.

The story did not end there.

After I left, my former landlord stuck to the VND25 million rate. For six months, the space sat empty.

As time passed, they gradually lowered the rent. Eventually, they called me, pleading for me to return at VND21 million per month.

But by then, I had already settled into my new location. Over a year, the landlord lost nearly VND120 million ($4,700) by refusing to adjust to market conditions.

For landlords, flexibility with rent is not just about keeping tenants—it’s about maintaining a steady income. Pricing too high drives tenants away, leading to months of lost revenue.

In today's challenging economy, shops open and close within months. When that happens, landlords must start over, searching for tenants who may not be as reliable or committed as long-term renters.