One of the drawbacks of renting is that your landlord has the right to raise rent once your lease expires. In most cases, landlords won’t raise the rent by more than three to five percent a year. However, there are cases where the rent may go up drastically. Whether or not the rent goes up by a lot, you still need to decide whether you want to pay this increase or move out.
The Reason Behind Rent Increases
Things like maintenance, market rates and property taxes all tend to go up year after year, which means that landlords have to adjust their rent prices so that they don’t begin losing money. If a landlord hasn’t raised rent in a while, they may increase the rent significantly. This is completely legal since they can charge whatever the market allows. However, some states do require landlords to give a certain amount of notice on month-to-month agreements.
Should You Move When Rent Goes Up?
There are a few things to think about. First of all, look at other similar places in the area and see how much rent is there. If the cost is similar, then moving may not make much sense since you’ll be paying the same amount. If the rent has only increased a little, then the cost of moving may negate the amount that you would save as well.
If the increase is somewhat larger, then consider how much you make. Your housing costs should be no more than 30 percent of your income, including rent and utilities. If it exceeds this, then you may not be able to afford the increase. You could try to negotiate, but you may want to consider moving.
Regardless of your reasons for wanting to move, contact us at Dircks Moving & Logistics if you’re ready to take that step.