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How to Handle Increasing Rent Prices

Over the past few years, inflation has been skyrocketing, causing many people to stress about their financial status and whether they can cover the ever-increasing rent prices on their salary. It can be overwhelming to think of all the financial strains on the average family today, especially for young people starting their lives away from home. Also, it's very frustrating to realize that every dollar you save in the bank loses value as inflation keeps rising.

Handling financial difficulties often boils down to those insanely high rent prices and budgeting expenses. Learn what resources you have available to handle increased rent prices over the coming years. To deal with rising rent, you should know your contractual obligations and ensure your landlord follows your contract's terms. You can negotiate terms with your landlord, downsize, or shop for other rental properties. Installment loans from Simple Fast Loans are also a good choice if you need money for rent immediately while looking into other options.

Dealing with rising rent prices can be stressful, especially since inflation shows no signs of abating.

Knowing what resources are available to you is beneficial to help you adjust to difficult circumstances and give you options to stay in control of your financial situation.

Know Your Contract

When faced with a sudden rent price increase, the first step is fully understanding your contract obligations and terms. For example, landlords in some states must follow specific rules when they want to raise the rent.

Research your local rules and regulations to know whether your area's rent increases are legal. More likely than not, your landlord is aware of what they can and cannot do, but it doesn't hurt to know where you stand legally with the rent increases.

The following states, for example, have rent control laws that determine how much your rent can be increased and specific prerequisites that must be met before rent can be increased:

  • New York
  • California
  • Oregon
  • District of Columbia

Local governments in some states have put in place rent control laws to keep rent prices in check. These laws can vary by county, district, or even local zones.

The National Multifamily Housing Council has resources to help you determine what laws are in place to protect your rights as a tenant. Find out the laws in your area to ensure that everything about your rent increases is legal and fair.

Also, some states have protections that say landlords have to tell tenants when they want to raise the rent or make them pay for moving costs if the tenant decides to leave.

Miami, for example, requires landlords to give tenants at least 60 days' notice if the rent is increasing by more than 5%. In addition, Portland landlords are required, under certain circumstances, to help tenants pay relocation costs if the rent price rises above a certain threshold.

Landlords in Seattle must give a full six months' notice before raising the rent. In some parts of Minneapolis, rent can only be increased by 3%. Lastly, rent increases in Santa Ana, California, can only go up by 3%, with some older buildings getting an exception.

You can also look at your renter's agreement with your landlord to determine your responsibilities and ensure everything is in order.

If you're grandfathered in on an older contract, your landlord might be more willing to negotiate a change in terms.

Negotiate Price Changes

Landlords have a reputation for being strict regarding prices, but some techniques will make your landlord more receptive to a price change.

If you've been a decent tenant for a while, your landlord will be more open to negotiation. They won't want to lose a dependable tenant to the risk of a new, untested tenant.

That's a valuable bargaining chip in establishing yourself as a good, respectable renter. You can also offer to sign a more extended lease agreement, which would make the rental property your "business" for a long time.

If you manage it, you can also offer to pay a few months' rent in advance in exchange for a lower price.

You're again appealing to the landlord's trust in you as a viable tenant worth keeping and taking their mind off having to chase yet another tenant over rent payment.

Having a steady and reliable clientele is essential for landlords, and contractually agreeing to stay for a long time at a lower price is a tempting offer. Being grandfathered into an older contract agreement is also reasonable grounds for negotiation.

Combining these techniques can increase your chances of securing a better arrangement with your landlord and keeping your rent under control.

The last thing landlords want to deal with is cleaning up after unruly tenants and chasing down late payments, so you, as a respectful and upfront renter, can increase your chances of a price drop by appealing to their sense of security.

You can also use your lease agreement to make a discount more attractive to your landlord.

Remember, the goal is to present yourself as an attractive tenant worth keeping for the security, so be sure to stay in good standing while you exercise the leverage you have as a tenant.

Whatever you do, don't establish yourself as being desperate. Your financial situation is of little concern to your landlord and being dependent on them leaves you with no foothold on which to negotiate. Don't promise to prepay if you can't manage it.

If you don't pay your rent on time, your landlord will lose faith in you and won't take any of your future bargaining offers seriously.

If you live in a place that allows pets and don't have a pet, consider using that as a bargaining chip. For example, a new tenant might bring in pets, increasing the time and money the landlord has to spend cleaning.

The promise of maintaining a clean area is a valuable point of interest for landlords. In addition, you can offer to give up a parking spot if you don't own a car or don't use it all that much.

The option for the landlord to offer it to another renter in exchange for a lower price might be the icing on the cake to secure you a better deal.

Search for Other Rental Options

Sometimes, landlords won't budge, and the price increase makes living there within your means impossible. If so, it's not worth dawdling while you wait for circumstances to change.

It's always best to exhaust every other option before moving, however. Movers and upfront costs are expensive and may cost more than you expect.

The security of having a developed relationship with a landlord is often worth something to them. If you can, you should leverage your position as a respectable tenant to try to secure a price drop.

You can hope inflation stabilizes or even ask for a raise at work. Still, when it comes down to it, financial stability is probably more important than whatever attachment you've developed to your current living environment.

Shop around and find somewhere that you can preserve your financial security over the long term. Of course, if applicable, you could always downgrade at your current residence.

For example, if you have a two-bed, two-bath apartment, you can downsize to one bed and one bath for a reduced price.

It may not be ideal but living past your means for too long can impact your credit and put you at financial risk.

Budgeting for Price Increases

As frustrating as it may be, rental price increases can often mean you have to sacrifice elsewhere.

You can only do so much to earn more money, and asking for a raise, working overtime, or starting up a side hustle are all well and good. Still, in a time of economic instability, creating a budget plan is more consistent.

Establish a comprehensive list of all your outgoing expenses and see what you can realistically cut out. There may be a lot more 'wants' in your life that can be removed or, at the very least, put on hold.

Subscription services, coffee, and other entertainment options can be quickly removed or modified to save money.

Build a budget based on what you need to live on and consider how to manage your unnecessary expenses more effectively.

Movies, clothing, meals out, and gym memberships all add a fair amount of money to your monthly expenses, so consider adapting to meet your financial needs.

Operate by the 50/30/20 rule, wherein you reserve 50% of your money for living expenses, 30% for wants, and 20% for savings and debts.

Installment Loans

Installment loans can be a beneficial way to get rid of all your debt if you need more time to figure out your living circumstances or consolidate high-debt interests. They can also help with managing rent prices in the short term.

For an installment loan, you get borrowed funds in one lump sum that you'll repay in equal parts over an agreed time. Unlike credit cards, you can only use an installment loan once, typically for large purchases.

Once approved for a loan, the lender deposits money into your account. You must repay the amount, plus interest, throughout your loan agreement.

For example, installment loans from Simple Fast Loans can help cover your increase in rent while you work out other financial options.

Final Thoughts

Over the years, rent prices have increased in every state, and widespread inflation has worsened the problem.

With rent prices rising, it's harder for people to keep up their standard of living and worry about how they'll pay for things in the future.

Thankfully, some practical courses of action can help you negotiate a better price or hold you over until you can secure a pay raise or other means of income.

First, you should always know where you stand legally with your rent increase. For example, is your landlord legally allowed to increase the rent without warning?

Is there a cap on rent increases per year in your area? Check your local, district, and state codes to see if legal factors may play in your favor in securing a better price on your rent.

If you've been a consistent, stable renter for some time, you have plenty of bargaining chips with your landlord to encourage them to keep you on as a tenant.

Establish yourself as a dependable and long-term tenant who is trustworthy, respects the property, and is willing to negotiate but never comes across as desperate to your landlord.

Remind them if you don't own a pet, offer your parking space, or create a long-term lease agreement for a lower price.

You can also cut out unnecessary expenses and look for ways to save―get into couponing, find better deals, and cut out subscriptions or services you no longer use.

While you sort out your budget, expenses, and prospective means of income, installment loans are a beneficial way to ensure you don't get behind on your payments and keep debt collectors off your back.

As inflation continues to rise, sometimes installment loans can be helpful to cover those expenses in the short term so that you have some space to think about your long-term plans for the future.

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