More than 45 million Americans live in rented accommodation, 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 spend their income on housing, which is frightening).
Calculating how much rent you can afford and using different strategies to find cheaper rent in your area are usually very present-oriented in the sense that it is about how much rent is Now and what you can afford NowBut rents have been rising for a long time (an average of 19% since 2019) and faster than wage growth. For those who found an apartment they could barely afford a few years ago, all it takes is one rent increase to go into crisis mode and look for creative ways to pay the rent.
In general, your landlord can raise the rent as much as he wants, with few restrictions—only a few states have rent control laws, and most states prohibit such laws. Of course, you can always try to negotiate rent increases, but rather than waiting for a letter from your landlord, it’s always better to be forewarned. Knowing the signs that a rent increase is coming your way gives you the opportunity to plan negotiations, look for a cheaper apartment, or adjust your budget to mitigate the rent increases as much as possible. This will help you recognize when your landlord is about to hit you with a rent increase.
Your landlord is renovating the apartment
One of the most obvious signs that your landlord is about to jack up your rent is a sudden interest in repairs and renovations to your home. Improvements to apartments or rental properties make them more attractive to other tenants and justify a rent increase. And landlords usually factor in a rent increase to cover renovation costs.
So if your landlord suddenly becomes aware of your complaints about an old bathroom or wants to gut the kitchen and put in new flooring, it’s not a cause for celebration; you should already be making plans because your rent will likely go up as soon as your lease allows it.
Foreclosures in the neighborhood
Keeping an eye on foreclosure rates in your area is a good way to predict rent increases, because all those people who are being evicted from their homes will have to find somewhere new to live. A wave of foreclosures in your neighborhood will lead to a rush of people looking to rent, and this increased demand can drive up rents everywhere. If you notice that a lot of houses on your block are being sold by the bank, get ready for the rent increase letter.
Rental portfolio is declining
If you notice that there are significantly fewer homes available for rent in your area, that’s a sure sign that demand has increased significantly. And when demand increases, rents eventually rise because property owners know they can command higher rents. Check websites like Trulia or Zillow regularly to get an idea of the typical supply of rental homes in your area. If you notice a sudden drop in availability, you may have to expect a rent increase.
The additional costs in the region are rising
If your landlord pays the utilities on your rent, they will have calculated how much your rent needs to be increased to cover normal usage. If the costs of heating, electricity, gas and water skyrocket, your rent will go up too. You can use a website like EnergyBot to see the rates in your area. Check every few months to make sure there hasn’t been a recent increase that might cause your landlord to reconsider their rents.
Other rents are rising
Finally a sure sign that your The rent increases when other Rents in your area are rising. This is especially true in the modern age of algorithmic rent-setting tools like RealPage that help landlords determine the absolute highest rent they can squeeze out of their properties—the more landlords use these technologies, the more monolithic rents become. If your neighbor is complaining about a huge increase in their rent, it could be a clear sign that the wave is about to hit you, too.
If you see the signs and get a little advance warning that your rent is going up, you have time to adjust your budget, find a cheaper apartment, or consider a roommate or another way to subsidize your housing costs. That’s much better than being surprised by the rent increase letter in your mailbox.
