In some cases, a landlord is allowed to raise the rent. If no tenant control policy protects your apartment, your landlord can legally charge a higher rent. In addition, if your lease has a clause that says the landlord has the right to raise the rent during the lease, he or she is free to increase it. Otherwise, a rent increase is allowed upon lease renewal on a monthly or yearly basis.
What do you do if your landlord gives you a rent increase notice? The information in this guide will help you take stock of the situation and determine if your actual apartment still warrants rent or if you should move.
Can you negotiate?
Provided you have kept your flat in good condition, your rent is paid promptly, and you are in your landlord’s good graces, you should have the ability to negotiate a decrease of your increased lease payment. This solution may succeed if your record as a tenant is exemplary or if you are a good communicator.
“Try to describe to the landlord the state of your finances and ask if they are open to lowering the sum, especially if it involves maintenance costs,” said Sarah Hardin, owner of a 32-unit apartment building in Boston.
Requiring a moment of reflection
A rent increase occurring at a moment when you aren’t properly prepared can cause some concern. Speak to your owner and clearly state your financial status.
“Discuss with your landlord, most preferably on paper, the implications of the increase and ask for a little time to deal with it,” said Stephen Morgan, district manager at Greystar. “Explain that this extra time will enable you to take a conscious decision and not make your situation worse.”
With markups of up to 25% in some states[1], it will take some time to figure out how to get the funds. In the meantime, consider finding a side job, another revenue stream or applying for a job promotion. If neither of these is an option, you can start thinking about budgetary tricks to put money aside.
Consider sharing a flat
A simple solution to meet the cost of your lease is splitting it with another person, subject to your landlord’s approval. Treat the screening phase with seriousness if you decide to do so. Do some background research and have an open discussion about such things as hygiene practices, conflict resolution techniques, etc. If you decide you’d rather live alone, there are better options than this, but it can be financially rewarding in the future. A recent Pew Research Center survey found that nearly one-in-three U.S. adults have an adult roommate or student of 18-24 who is not their love partner[2].
Requesting a lease extension for a specific term
After implementing the negotiation or considering the increase, the lease must be signed for an additional term. It would be ideal for negotiating a lease extension and determining if a lower rent increase is possible[3]. The owner may likely be inclined to accept a lower rent to get a long-term tenant.
“If you like the apartment and are open to spending a couple more years there, ask for a lengthier lease, say two years or more,” said Heidi Savard, customer manager at BH Management. “If you are financially prepared to make payments on time and stay for the lease, you can benefit from a lower rate”.
Leaving the unit
If the rent supplement is more than you can afford, you will need to move and look for other housing that fits your budget. Familiarity aside, you may need to sacrifice specific amenities, like being close to work, relatives or friends. Let your landlord know if you choose to move. This way, they can either choose to keep you living there until you rent a new place or put things in order to welcome a new renter.
