Inflation and other forces drive up residential rents throughout the country, placing once-affordable housing out of many renters’ reach. What can you do if your landlord announces a rent increase?
What is driving rent increases?
Rent increases are happening for many reasons. Costs for maintenance, materials, and labor have soared as inflation raises prices throughout the economy. City and county property taxes keep ratcheting up as government services face increased operating costs. As property owners are squeezed, they are forced to raise rents. As a result, many tenants are now paying more than 30 percent of their income for housing, which is beyond the recommended maximum for most budgets.
When the rent increase notice arrives
The first thing you should do when you learn of a forthcoming rent increase is review the provisions of your lease. Determine:
- The length of your lease.
- Whether your rent is locked in until the end of the lease, you may find that increases are not permitted during the lease term.
- Whether the lease sets any caps on the amount of an increase.
- Whether the lease specifies a metric for determining increases, such as increases in the Consumer Price Index.
Also, check with your local and state housing authorities to see how the proposed increase compares to others. Does your state set caps on increases, and if so, is the proposed increase within the limit?
If you determine your landlord is not compliant with the lease or government regulations, talk with them. Don’t be argumentative; simply state the facts. If necessary, contact the authorities.
Other remedies
Even if the landlord complies with the lease and government regulations, you may have options for avoiding the increase.
- If you have been a model tenant with no late payments, property damage, or noise complaints, use those facts to your advantage. Stress to the landlord that good tenants can be difficult to come by and that if you are forced to move, the next tenant may not be as desirable.
- Ask whether signing a longer-term lease would allow you to keep your current rent or at least one lower than the proposed increase.
- Ask whether you can get a price break or other assistance by referring a new tenant.
- If the landlord is not flexible, band together with other tenants to use strength in numbers to persuade.
Understand that, given the increases in landlords’ expenses, yours may be in a difficult position, and your efforts may yield limited results.
Related – Is Renting a Home Right for You?
