Rent increase is on the rise and has increased almost 50% since 2008. Now more than ever it's important to know how to handle it.
Additional resources:
https://www.cnbc.com/2021/11/28/how-to-prepare-for-a-big-rent-increase-.html
https://nhlegalaid.org/self-help-guides/housing/leases-security-deposits/rent-increases
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can s...
Rent increase is on the rise and has increased almost 50% since 2008. Now more than ever it's important to know how to handle it.
- Additional resources:
- https://www.cnbc.com/2021/11/28/how-to-prepare-for-a-big-rent-increase-.html
- https://nhlegalaid.org/self-help-guides/housing/leases-security-deposits/rent-increases
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal Podcast.
Depending on where you live, there is no legal limit to how much your property owner can raise your rent. There is currently no limit in New Hampshire or Massachusetts. In order for the rent increase to be valid, the property owner must give 30 days’ notice and then the tenant needs to agree and sign. To protect yourself against rent increases, have a written lease that fixes the rent for a period of time. If you are paying rent month to month, the property owner can increase the rent each time you pay.
Renters should proceed with caution when they lease with an escalator clause. These clauses allow the property owner to increase the rent before the lease runs out, so it's best to avoid leases with an escalator clause. This only applies for specific reasons, such as an increase in taxes and utilities. If you do end up signing a lease with an escalator clause and the property owner increases the rent, make sure you are only being charged for increased taxes and/or utilities.
Talk with your property owner to see why the rent is increasing. You may be able to negotiate back down to the original rent or at least lower than the new cost. Before negotiating, do a bit of research. Are there a lot of vacancies in the building? You can use this as leverage by saying you can offer to tell people about the vacancy and try to get new people to move in. Look at the average cost of rent in your area – are you paying higher than average for comparable space? If it is, use this to your advantage. Tell your property owner that they are overpriced and moving may be a cheaper option for you. This, paired with vacancies in the building, may make the property owner reconsider, as they can’t lose out on more revenue. CNBC says to keep this in mind is “If your property manager or owner senses your desperation, you won’t have a solid stance to negotiate.”
If the landlord won’t back down on the increase, try seeing if you can get some additional perks. Ask for some upgraded appliances or see if you can get some utilities included with the rent.
If the landlord still won’t back down and refuses to negotiate, it might be time to consider moving. Moving can be expensive, so make sure you consider all of your other options first.
If you found this episode helpful, we’d like to hear from you about thoughts on this show or maybe you have some ideas on other topics we should cover, email us at tcupodcast@trianglecu.org. Be sure to subscribe to the Making Money Personal podcast for our full episodes and weekly Money Tips wherever you listen to podcasts and follow us on Facebook for more great content.
On behalf of the podcast team, thank you to our sponsor, Triangle Credit Union, and thank you, as always, for listening.
Have a great day everyone!
