I’m sure many of us are familiar with rent increases and I understand that this is necessary because the maintenance, cost of land go up through time. However, I got a letter a letter that has similar language as the following 3 times in the last 13 months.
… As a result, this letter constitutes written notice the rent due for Apartment 15 will increase from $995.00 to $1,045.00 per month effective October 1, 2007…
My 12 month lease expired May of 2006 and that’s when the “fun” started. Around July or so, I received the first letter for a rent increase, then again in November and now one more time this month.
| Month | Rent | Price Increase |
| May 2006 | $905 | - |
| August 2006 | $945 | $40 |
| Feb 2007 | $995 | $50 |
| August 2007 | $1045 | $50 |
I would appreciate it if they just tell me once a year that the rent is increasing but it really bugs me when they keep doing this. Although I’m not happy about the monthly rent I need to pay, I’m frustrated because it is annoying and not because I think the price is not justified as our rent is still cheaper than most places around.
Is this standard practice for apartments to do this since I don’t hear other people complaining about these sorts of things? Is there a way for me to negotiate with my landlord about this? Any input would be appreciated!
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{ 14 comments… read them below or add one }
That’s weird. I always thought you lock in the rates for the period of the lease when you sign the lease. Are you on a lease since your last lease expired or just on month-by-month basis?
If the rent increase after signing a lease – I am pretty sure you will have an option to break the lease or something.
As far as I have seen, it’s not a standard practice to increase rates after a lease has been signed – you are right, probably that’s why you don’t hear people complaining about this sort of thing.
Have a word with your landlord and at least ask him what’s going on. You will probably have more (or different) options after he/she gives you some more information.
Well, that makes it pretty darn hard to plan doesn’t it?
It does sound like your original lease expired and then you went to a month to month option. Maybe the landlord will let you lock in a price for a new 1 year lease?
It is amazing how much different the prices are in different parts of the country-we are in the country and our new mortgage on a 3,000 sq ft home will only be $1600 a month. . . .
Golbguru: Unfortunately it’s I’m on a month to month. I think I should talk to them about signing a lease.
Jenn: If I can get a mortgage for $1,600, I will definitely not rent anymore! House prices where I live is just too crazy to have this option (although I’m still considering buying a house as the market continue to soften).
Maybe it’s time for a house! : )
Emily: You are either:
1) my fiancee in disguise
2) my fiancee’s really good friend whom she asked for help
3) someone who my fiancee will love
It seems like they are trying to get rid of you. Personally, I do not raise my tenants that much even in a one year period. I am better off keeping the current tenant at a small increase, rather than having the apartment empty for a month or more, repainting it, and having to advertise and show it.
verena on: Perhaps they are. However, I will be paying more than most of the people with leases once I start paying $1045 and I have never had any rent problems so I don’t think they want to get rid of me for monetary reasons.
I should ask them what their intentions are though.
I disagree–I don’t think anyone is trying to get rid of you.
I leased apartments to pay my way through college, and one (of many) thing I learned was the month-to-month (MTM) leases are unwise for the tenant unless they are actively planning to move out in the near future. As the apartment market shifts (and it IS always shifting–market analysis happens all the time among apartment communities), rent for new lessees and MTM tenants always goes up–never down.
Additionally, at least new lessees get “move in specials” like $500 off the first month, so that at least offsets the fact that they are paying $75/month more than their neighbor who has lived in the same apartment for 2 years. MTM tenants receive no such benefit.
Think of it in terms of magazines and magazine subscriptions. Subscribers pay the bills–it is money that is committed to the magazine and is used to stay solvent. Selling mags from the newstand is where the profit comes from.
Leases are similar–the apartment manager can count on $XXX per month (vacancy rate is determined monthly), based on leases. However, the guy on a MTM lease could move out next month, and that is one more apartment that must be marketed to the public, calls must be fielded in an attempt to rent it, the leasing staff must show that floorplan to prospective tenants in order to get them interested, applications for tenancy must be processed, credit checks must be made, references have to be checked, leases have to be signed, etc.
Simply, it costs the apartment manager more to have someone on a MTM lease than it costs to have someone locked into a longer term lease.
If you aren’t planning to leave your apartment in the next 7-12 months, check into getting a “move in special” (or at least lowered rent) in return for committing. When I was leasing apartments, everyone on a MTM lease paid $50/month more than market value.
That’s key. Think about that for a second. Imagine you moved into a place in Jan 2006 on a 12-month lease. You are locked into (for example) paying $1000/month for that apartment. Over the course of that 12 months, the market dictates that your apartment is now worth $1100. After your lease ends in Jan 2007, you choose to go MTM. Well, your landlord knows that if he raises your rent $150 in the first month, you will almost certainly vacate the apartment. So, they “give you a deal” by not charging you the $50 MTM premium for the first four months. Sooo, you pay $1100 (market price) for your apartment until May 2007. At that time, your rent gets bumped to $1150 to include the MTM fee. Four months later, market rent (what your manager is charging the general public for your floorplan) jumps another $50. Congratulations, you just got a letter notifying you of a rent increase.
It’s perfectly legal, and even justifiable if you consider it from the perspective of your landlord.
Sorry if the flow of this post was confusing–I’m late for work!
Joe
Joe: YOu have sold me, I will talk to my landlord about a lease.
I still think I will propose a lower monthly lease for a commitment though and see what they say. It never hurts to ask right?
Further dealing with these types of rent issues and I’m sure I will favor buying a house more.
For several years, renters have had something of a holiday because the availability of subprime mortgages took would-be renters out of the market. Now that this is gone, there will be ongoing upward pressure on rents. The vast “rent multiples” in places like SoCal aren’t only because houses got silly-expensive; some of it is because rents are relatively depressed.
Foobarista: Maybe but rents have increased dramatically over the past year or two for us. 10 – 20% increase isn’t really what I would want to call “normal”.
well u guys are well come if u want to rent an apartment all u just hav to do is to mail on my yahoomail cashmandollars@yahoo.com the apartment is 4 rent in the uk .
am one of the agent i wort with the city data. so mail me back if u are intrested, n not to worry i hav the pics 4 proof, u are welcome.
It’s all about personal choice and where you plan to be in a few years…. I know you said the amenities there are terrific. And if the price is still lower than other places, and you love it there, then stay.
However, if you plan to be in the same area for a long time, I’d say buy the house! Get a fixer upper and work on it in your spare time… at least you’d be home and working on it together
There’s just nothing like the great feeling that comes from fixing up your own place and turning it into ‘you’ !
Good luck with the choices.
I thought there was rent control there? Three raises in 14 months seems very excessive. Once a year is bad enough.
Very Informative post on Apartment Rent.