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Renting a home is not an inexpensive prospect these days. In fact, the median monthly rent in the U.S. was $1,942 in January, according to Rent.com. That’s a 2.37% increase from one year prior.
Meanwhile, it’s common for landlords to raise rents as soon as they’re able to. And that generally happens once a lease comes up for renewal.
If your rent is going up, you have some options. For one thing, if you’re in a great financial spot and can afford a mortgage loan, you can look at buying a home.
But if money is tight, which is the case for many people these days due to factors such as inflation, then an increase in rent may be a problem. And buying a home may not be anywhere close to an option.
The good news, though, is that a rent increase doesn’t automatically mean you’ll end up having to pay that much more for your home, or that you’ll be forced to bear the cost of a move to a less expensive home. That’s because your landlord may be surprisingly receptive to negotiations.
Why you want to negotiate when your rent goes up
Let’s get one thing out of the way. Your chances of not seeing your rent increase at all from one leasing period to the next are pretty low.
The reason? Just as your costs tend to go up from one year to the next, so are your landlord’s costs apt to rise. So think about it – if your landlord were to never raise rents, they’d fall behind financially.
As such, if you’ve received a notice that your rent is rising, don’t expect to end up keeping it exactly the same figure as it is now. But also, don’t hesitate to negotiate with your landlord. If your rent is increasing by $80 a month, and that’s beyond your budget, see if you can talk your landlord down to a $40 increase, or a $50 one.
How to make your case
Why might your landlord be willing to negotiate a rent increase rather than stick to their original number? It’s simple. Finding new tenants can be a hassle. And landlords often don’t want to risk vacancies. So if you’re a good tenant, your landlord might agree to a smaller increase than they initially presented.
To make that case, though, remind your landlord of the many positive habits you have as a tenant. These might include:
- Paying rent on time every month
- Being a quiet renter who’s never had a noise complaint
- Not having a constant stream of guests
- Abiding by your landlord’s rules, such as never smoking in your home or allowing a pet to visit if those things are against the rules
Your landlord might find someone else in a financial position to be able to afford your home if you can’t on the heels of your rent increase. But will they find someone who’s a respectful, non-controversial, and non-annoying tenant? That’s the big question mark. And it’s a risk your landlord may not want to take.
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All told, rent increases are pretty common. But before you resign yourself to having to strain your budget or consider a move, have a talk with your landlord and ask if it’s possible to meet somewhere in the middle.
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