Introduction
The past couple of years have been almost brutal for renters. Post-pandemic, the rental market has changed drastically. Rent increases are surging across the country, and many renters have to make tough decisions about where they live. Renters saw a nationwide 17% rise compared to 2021, which is four times that of the pre-pandemic rise rate.
If your rent has increased, you will be facing a significant change in your budgeting that you didn’t have to account for before. If you are in a pinch and can’t afford to pay rent for a couple of months, look into loans for rent. They can take the pressure off of you for a little bit while you figure out a solution.
Here’s what you can do if your rent has increased.
Understanding your rights as a tenant
Most municipalities and states have laws governing when a landlord must notify a tenant of a rent increase. That means your landlord can’t hike your rent up overnight. The length of the notice period depends often on the type of rental agreement you two have, such as whether it’s a fixed-term lease or month-to-month agreement.
If you have a fixed-term lease, your landlord can only increase the rent once the lease ends (such as two years after signing the agreement), which gives you time to financially prepare for a potential increase. In a month-to-month arrangement, your landlord may be able to increase the rent anytime, with prior notice. It’s common for the state to require landlords to inform of rent increases about 30 days in advance but depending on your agreement, it can change.
Negotiate with your landlord
Getting a new tenant can be pricey and inconvenient for landlords. If you have been a tenant for a while, you should talk to your landlord in order to limit the impact of a rent increase. If you have been a good tenant, it’s in your landlord’s best interest if you stay. That gives you some leverage.
One thing you can do is contact your landlord a few months before the lease is set to expire, even before you get any official notice for a rent increase. Ask if the rent will be hiked and start negotiations early. In today’s rent market, it’s likely your rent could increase at the end of a lease agreement and if you start the conversation early, you may be able to reduce the number significantly.
It’s worth reminding the landlord of your good record as a tenant and asking for a smaller increase, maybe even offering a number that’s in line with current rents in your neighbourhood. You could also offer to sign a lease for longer than the standard 12 months, which lets the landlord save money by not having to search for a new tenant.
Managing rent increase
If you have an excellent rental history, you don’t have to immediately agree to a rent increase. There are many options for negotiating either a smaller hike or other benefits that can help negate the impact of higher rent. You might also consider reorganizing your budget to accommodate the new rent or move to a cheaper place.
If you are facing a rent increase, it’s important to remember that you aren’t fully powerless. You have rights as a tenant and you can always move out if the hike is too much for you.
Conclusion
The rental market is in a rather precarious position currently, with rents rising left and right. If you are facing a rent increase or think your rent may increase, it’s better to talk to the landlord before jumping to any conclusions. If you start the conversation yourself, you may even be able to reduce the number a little. We hope this article helps you understand what steps you can take in case you ever face a rent increase.
