5 Practical Ways to Avoid a Rent Increase

Negotiating a rent reduction can be challenging, especially when the cost of rent is increasing across the country.

A lot usually happens as you reach the end of your rental term. First, you must decide if you want to stay in your apartment. Then you have to decide how long your next rent term will be. Once you decide to renew your lease, do not be surprised if the rent price isn’t the same.

1) Why is Rent Increasing Every Year
2) How to Avoid Rent Increase
3) Rent Increases are Temporary
4) FAQs

Why is Rent Increasing Every Year?

You might be wondering why does rent go up every year? Rents often increase because other property maintenance costs increase. It’s normal for the rent amount to increase after the initial lease term ends. On average, rent will increase between 3% and 5%, which means you will see a $45 to $75 increase if your original rent was $1,500 every month. A slight increase in the rent means that management is covering the increased property costs. A significant rent increase may suggest that they want to make a profit.

Fighting a rental increase may prove futile, but it doesn’t hurt to ask management why the rent went up.  You can also discuss how you might be able to avoid paying the increased rate.

How to Avoid Rent Increase

If you can remain at your current rental rate, it may provide you with an incentive to stay in your present apartment longer and, thus, avoid all the stress and expenses associated with moving.

Here are five ways that you may be able to avoid paying a rent increase:

1) Pay your Rent Early or On Time

The better you are as a tenant, the more likely it will be that your property manager won’t increase your rental rate. They won’t want to lose you if you’re a good renter. And good renters pay their rent early or on time every month.

2) Ask to Sign a Two Year Lease

Typically there’s language in the lease agreement that stipulates the conditions or time when property management can increase the rent.  This provision usually indicates that management can not increase the rent until after the current rental lease period ends. You will have more security as far as costs are concerned if you sign a lease agreement for a longer period, perhaps two years instead of one. You’ll then have two years of a locked-in rent rate instead of one.

This option is also attractive for property managers because having a good tenant in a unit longer means less time spent advertising a vacant unit and screening potential tenants to fill it. It’s expensive and time-consuming. So if a tenant is willing to stay longer than a year, a property manager will likely agree to agree as well. And, since this is of equal benefit to management, they are more likely to be open-minded to negotiating with you about rental rates.

3) Avoid Getting a Pet

Having a pet can be great, but having one in a rental can be expensive. Most rentals charge tenants who have pets a deposit and, in some cases, additional rent, sometimes $15 to $50 extra per month depending on the area, number of pets, and species.

You can avoid paying increased rent plus pet fees by waiting to adopt a pet until you move out.

4) Don’t Move Out

Moving expenditures can pile up quickly, and it’s easy to low-ball your moving budget, only to face hefty moving expenses in the end. You may spend less money in the long run just by staying in your current apartment and paying a little more money for renewing your lease than you would be paying to move.

Not only that, but a new rental in a new location involves payment of the rent first and last month, a security deposit, and other upfront fees. Why pay all that if you’re just trying to avoid paying a rental increase for staying in your current apartment? It makes more sense to adjust your budget to allow for a slight rental increase.

5) Do not Request Improvements

Is your oven older than your apartment? You might be tempted to request an upgrade from your property manager, but who shoulders the cost for this? A property manager can increase rents to offset the cost of new equipment. Even if you don’t request an upgrade, don’t immediately consider it a freebie if or when your property manager offers you one. Ask whether your rent will be increased as a result and if so, decline it.

Additionally, if you’re only dealing with a minor service issue, such as a clogged toilet or a broken window, try to fix it yourself if your lease allows. Everyday maintenance costs someone money, and it sometimes becomes your expense through a rental increase.

Rent Increases are Temporary

Experienced tenants know that a rent increase is just part of the rental experience. If you like your apartment, it is generally worth paying a minor increase every year.

Do not hesitate, though, to discuss with your property manager how you can avoid paying rental increases if you like your apartment. You can perhaps avoid a rent increase just by having a conversation.

FAQs

Can you Refuse a Rent Increase?

Depending on the terms of the lease agreement and local rent control laws, tenants may refuse a rent increase. The landlord may be entitled to raise the rent, and the tenant may be forced to either pay the increased rent or leave the property if there is no rent control and the lease does not prohibit rent increases.

Does a Landlord have to Justify a Rent Increase?

By and large, landlords are not legally necessary to legitimize a lease increment for tenants. However, landlords may be required to provide an explanation for the rent increase, such as the cost of property maintenance or improvements, under rent control laws in some states or cities.

What is the most a Landlord can Raise Rent?

Ten percent, or the lower of the local CPI (inflation rate) or 5%, is the maximum rent increase allowed by landlords.

What is a Realistic Rent Increase?

As a rule, a practical lease increment might be in the range of 1–5% each year, although this can change broadly depending upon the particular conditions.

Related Article:

New York Rent Laws – What Renters Need to Know?
What to Do If Your Landlord Sends a Rent Increase Notice
Rent Increase Laws – How Much a Landlord Can Raise Rent in NYC?