If you ever wondered why the rent for apartments raise every year, you’re not alone. Even the kindest and most accommodating landlords sometimes raise your cost of living. Knowing why this happens can help you plan your next steps, and even negotiate for a lower rent.
6 Reasons Why Apartments Raise Rent Every Year
There are various reasons why your landlord may ask for a rent increase on your apartment. Sometimes, this is completely out of their control. Other times, they’re just trying to keep up with their increasing costs.
If your landlord asks for a rent increase, feel free to ask about their reasoning. That way, you better understand where they’re coming from and whether or not you can negotiate your rent.
Here are 6 common reasons why apartments raise rent every year:
1. Changes in the Real Estate Market
The most common reason why your rent may increase every year comes down to the real estate market. Like all markets, it fluctuates depending on the supply and demand of real estate in your neighborhood. If the market prices go up near you, chances are your rent will increase, too.
2. Rising Taxes
As property taxes rise, the rent also often rises with it. Property taxes fluctuate based on local laws and regulations.
3. Neighborhood Modifications
The more sought-after your neighborhood is, the higher the prices will be. Did a new school open up? Did your main square undergo renovations? Is there a new Target around the corner?
A lot of modifications can improve your neighborhood for the better. And that can make it more likely that people will want to live there. The downside of that, though, is that it means your landlord can raise the rent every year improvements are made.
4. New Job Opportunities
New shops, restaurants, and factories in your area mean new job opportunities. If more people want to move to your neighborhood, your landlord has a better chance of finding new tenants who pay more.
5. Property Maintenance Cost
Every apartment needs maintenance. The more there is to fix in your apartment, the more
Although, they may not pocket the difference. Good landlords will reinvest their profits into your apartment. They’ll make improvements that can help improve your daily life there. And in the end, it may make your stay more pleasant.
When Do You Get a Rent Increase Notice?
When your landlord or property manager needs to give you notice of your rent increase depends on which state you live in. Generally, the rules of this notice are similar.
If you have a written lease, you’ll probably find a clause about rent increase in there. It will tell you when the landlord needs to notify you about the increase. Sometimes, it will even limit how much your rent can be increased each year.
Generally, the landlord or property manager will give you your rent increase notice one or two months before your lease expires.
What Is in a Rent Increase Notice?
A rent increase notice is a written notice that your landlord wants to increase the rent you pay. It needs to include some necessary information, such as:
- The name of the tenant(s)
- The landlord’s name
- The landlord’s contact information
- The address of the property
- The current rent cost
- The amount rent will increase
- The new amount owed for rent every month
- The date the rent will increase
- The date
What Makes a Rent Increase Notice Invalid?
In some cases, you have legal grounds to fight a rent increase notice. If you find yourself in one of the following situations, you should consult with a lawyer to see what your options are.
- The rent increase notice wasn’t written or missed crucial information
- Landlord didn’t give you enough notice
- The landlord wants to increase the rent because they think you’re a difficult tenant
- The landlord wants to raise the rent in a discriminatory way
What Can You Do If Your Landlord Wants to Raise the Rent?
If the landlord want to raise your rent, you have three options:
- Agree to pay more rent: If you love your apartment, and your current financial situation allows it, you can agree to the rent increase.
- Negotiate your rent: You can negotiate against a rent increase or ask your landlord to withdraw it altogether.
- Move out: If your landlord won’t budge, and you can’t afford the rent increase, it may be time to move to a cheaper apartment or area.
How to Negotiate for Lower Rent If Your Landlord Wants to Increase
Just because your landlord wants to increase the rent doesn’t mean you have to pay more. You can negotiate raised rent if you know how.
The first thing you need to do is research. See the cost of similar apartments in your area, and how it compares to your current vs. increased rent. If it’s more expenses than other nearby apartments, you can tell your landlord that.
Alternatively, you can always offer something in exchange for lower rent. You can offer a 2-3 year lease with a fixed rent instead. Every landlord would rather have a reliable tenant than a slight increase in their income.
you could also offer to fix or upgrade something in your apartment. A new fridge or a repaint would raise the value of the property. Yes, it’s an out-of-pocket expense for you, but at least you get to enjoy it while you live there.
Choose a Platform With Built-In Rent Negotiation
An easier way is to stick with a rental platform that helps you get a fair market price for your rent right at the start.
Brixbid lets you negotiate your rent instantly. Browse our listings to find your dream home in Chicago. Once you find a listing that you love, make an offer on our rental platform.
At Brixbid, you have a say in how much you’re willing to pay. You don’t need to negotiate with the landlord. Brixbid even handles your lease online, making it even easier to get the keys to your dream home.
Save yourself the effort and potential embarrassment of rent raise negotiations, and do it on Brixbid instantly!