Five Signs Your Rent Is About to Go Up.
More than 45 million Americans rent their homes, and about half of them are “rent-burdened,” meaning they spend more than 30% of their income on housing (more than 12 million of them spend more than half of their income on housing). , which is scary).
Calculating how much rent you can afford and using different strategies to find cheaper rent in your area tends to be very present-oriented in the sense that it’s about what the rent is now and how much you you can afford to pay now . But rents have been rising for a long time (by an average of 19% since 2019 ), which is outpacing wage growth . If you found an apartment you could barely afford a few years ago, all it takes is a rent increase to push you into crisis mode and finding creative ways to cover the rent.
Generally speaking, your landlord can raise your rent as much as he wants, with few restrictions —only a few states have any type of rent control law, and most states actively prohibit such laws. Of course, you can always try to negotiate a rent increase , but rather than wait for a letter from your landlord to arrive, it’s always better to be forewarned. Knowing the signs that you’re about to face a rent increase will give you the opportunity to plan your negotiations, start looking for a cheaper place, or adjust your budget to cover the hit if possible. Here’s how to tell if your landlord is going to raise your rent.
Your landlord is renovating this place
One of the most obvious signs that your landlord is about to raise your rent through the roof is a sudden interest in renovating and updating your home . Upgrading apartments or rental homes makes them more attractive to other renters, justifying higher rents. And landlords typically estimate rent increases to cover the cost of renovations.
So if your landlord has suddenly taken notice of your complaints about the old bathroom or wants to gut the kitchen and put in new flooring, don’t get too excited—start making plans, because your rent will likely skyrocket as soon as your lease allows.
Foreclosure in the neighborhood
Paying attention to the foreclosure rate in your area can be a good way to predict rising rents because all those people displaced from their homes are having to find a place to live. A wave of foreclosures in your area is leading to more people in need of rental housing, and this increased demand can lead to higher rents everywhere. If you notice that the bank is selling a lot of houses on your block, get ready for a letter about a rent increase.
Rental inventories are declining
Likewise, if you notice that there are far fewer homes for rent in your area, that’s a sure sign that demand has skyrocketed. And when demand spikes, rents eventually follow because property owners know they can get higher rents. Check sites like Trulia or Zillow regularly to get an idea of the typical inventory of rental homes in your area. If you notice a sudden drop in affordability, you may be faced with a rent increase as a result.
Utilities in the area will increase
If your landlord pays utilities for your rental, he has calculated how much your rent will increase to cover typical use. If the prices for heat, electricity, gas and water rise sharply, your rent will also increase. You can use a site like EnergyBot to see rates in your area. Check every few months to make sure there hasn’t been a recent spike that might inspire your landlord to reconsider your rent.
In other countries, rents are rising.
Finally, a sure sign that your rent is rising is if rents in other areas of your area are rising. This is especially true in the modern era of algorithmic rent determination tools like RealPage , which help landlords determine the absolute highest rent they can squeeze out of their properties—the more landlords use these technologies, the more monolithic rents will become. If your neighbor is complaining about his rent skyrocketing, it could be a clear sign that a wave is about to hit you too.
If you see signs and a little warning that your rent is going up, you have time to try to adjust your budget, find cheaper housing, or consider a roommate or other way to subsidize your housing costs. It’s much better than being blindsided by a rent increase letter in your mailbox.