More tenants are getting notices of rental increases ranging from 20% to 50%. The news is all too often a financial blow to many renters. If you find yourself in this situation it is important to compare several factors when deciding to either stay or move. These factors include 1) the cost of moving vs staying, 2) your current financial position to be presented on rental applications (i.e. employment history, credit score, and security deposits), and 3) negotiate with your current landlord. Continue reading to examine the pros and cons of each option.
1) COST OF MOVING vs STAYING
Here is a case study. Robin is informed her rent is increasing by $200 monthly. This equals an added expense of $2,400. Robin shops around, finds and is approved for an apartment. It is comparable to what she already has and the same price. Great, a win for Robin! Hold on a minute.
Rental applicants and credit/background checks - $300
Moving expenses (i.e. boxes, movers, fees to have utility services transferred, time off work, etc.) - $1,000
Non- Refundable Security Deposit -2,000
Cost for Robin to stay put $2,400. Cost for Robin to move $3,300. Run the numbers in some rental markets it may be cheaper to stay put.
2) RECOGNIZING YOUR CURRENT FINANCIAL POSITION
Are you the ideal rental candidate? If not,
Do you have enough time and resources to become one?
How much can you allocate towards rental applications knowing there is a high chance for rejection?
What is the plan to improve your financial position?
Are there housing agencies in your area that can assist you?
In cases of low income, poor credit and sketchy backgrounds, sometimes the assist of nonprofits can aid in successfully securing an apartment opposed to going at it alone.
3) NEGOTIATE WITH YOUR CURRENT LANDLORD
Have you been a good tenant? If so, capitalize off your on-time payment history and non-existence of complaints. Write a email/ letter and make your pitch. Offer services which can assist in managing the property. Be observant and find a problem uniquely related to your building and offer to be responsible for it. Examples of this can be range from showing your apartment to possible tenants to gathering and tossing circulars that accumulate around the mailbox.
As always thanks for reading.
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