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The stories are all around today.  Individuals and couples living paycheck to paycheck.  Costs are rising from filling up your car with gas, to filling up your stomach with food!  There is another increase that is happening all across the country and the increase has been staggering.  Reports are showing a minimum of high single digit to 20% or more increase in RENT over the last 2-3 years!

20% increase is staggering!  For the person or couple that wants to save to get their own “American dream” home someday, this double digit increase in rents, along with the associated costs of increased utilities, it is now dashing the hope for many individuals and couples in securing their own home anytime in the next few years unless there are some radical changes in the current economy.

So with the current double-digit rent increases over the last few years, what is one to do when the landlord raises rent?  How is one to navigate this exceedingly great increase of expense in keeping a roof over you and your family’s head?

This is what today’s episode is about.  Specifically “what to do if your landlord raises rent?”  Here are some practical tips for what to do when your landlord raises rent.

 

What To Do When Your Landlord Raises Rent

You should anticipate some amount of rent increases over your time in that apartment and budget accordingly. You should not be surprised when it happens!  Rest in that almost always there will be a yearly price increase.  The real question is how much or what percentage it will be year over year.  Rent is typically indexed to inflation in some form or fashion. Yes, it is not always this way, but that would be a good baseline for one to process and plan financially for. Before you ever get into an apartment, you should make sure that your rent payment is NOT to the maximum end of your possible budgetary threshold. A good and wise steward will always build in some margin, some wiggle room in their finances to cover cost of living, and rent increases.

How to calculate Inflation –> https://www.bls.gov/cpi/

Practical Tips

  • Be a good tenant. Be helpful, pay your rent on time, be a good neighbor. Don’t give the landlord incentive to get you out of there!
  • Negotiate your rent. If you are renting from a private landlord, you have much more room to negotiate. As a landlord, it is really hard for them to say you can’t afford the rent increase if and when they walk through the house/apartment and see all the fancy luxuries hanging around, or that brand new car in the driveway or parking lot, and you have the ability to straight-faced tell them that you can’t afford $100 a month more?
  • Ask for a longer lease. Many times, you can negotiate a lower monthly payment if you commit to a longer lease period.
  • Re-do your budget. Get real about your money, finances and stewardship across all budget categories.  Look intently toward how you can restructure your budget in order to afford the rent increase. There may be subscriptions, memberships or other expenses that you have neglected to look at our adjust that you can eliminate or reduce from your monthly expenses to afford the new payment. (see episodes 056: How Do I Decrease my Expenses?, 057: How Do I Increase My Income?, 078: Why Isn’t My Budget Working?)
  • Look for other living arrangements. Chances are, if you are unable to afford your current rent situation, the market rate might be unaffordable. Consider roommates if you are able and allowable in your contract. Check with your Pastor and see if there may be people in your church that have available rental space (room for rent, in-law suite, extra cottage on the property) that you could get a reduced rent, or no rent to live there in return for house/yard labor or something else.
  • Find ways to increase income. If your rent is going up by $100-$200/month, there may be ways you can make up that shortfall. Consider taking a side job or committing to a side hustle.

 

Legal Tips

  • Know your state’s rental laws and tenant rights. Get online and investigate and KNOW what your state’s laws are pertaining to landlords and renters. Laws vary from state to state, so you need to know the “ins and outs” of what the landlord can do, and what your rights are as a tenant. Because we have a national/international audience, we acknowledge that laws vary by city/state, and even country!  But in our country, specifically our state, Pennsylvania, we have a “no rent control law.”
  • Get to know your lease agreement. Know exactly what is written in there. If you rent from a corporate landlord, many times, the lease manager doesn’t know every line and nuance in the lease agreement. There may already be some sort of clause that explains how rent increases work, or another nuance. If you know your lease agreement, you can make sure that whatever is happening is, in fact, legal!

 

When Staying is Best

We said it before, and we need to say it again.  Know your budget! If you cannot afford the market rate for rentals, or a house (not just the down payment, but also the monthly payments), staying may be your best option if the landlord raises rent. If this is the case, it would be wise, with much research and knowledge, to put together an actionable plan to get out in the short-term. You may just need another year to save what you can so you can get out of that apartment. Remember, in this situation, choosing to live differently today (going VERY basic for a season to stash away cash) can afford you to live differently tomorrow!

If you can move your budget around to afford the apartment (while also giving and saving), staying may be a very good option. If there is too much stress involved in finding a new place in the time allotted, staying may be the best option. Besides, the cost in moving COULD be higher than the higher amount demanded by the landlord. The average cost of moving from apartment to another apartment is a low of $250 (across town) to over $1600.  Count the cost because it just may be cheaper to stay put and not move across town.

 

When Moving is Best

  • If the rent increase is more than what you can realistically afford, it would be best to look at other options, like we talked about earlier.
  • If bad blood with the landlord is causing you greater stress than what it is worth, moving may be a wise option. 
  • If it is not safe for you to be there (health or security).

 

When you can’t afford to stay, but you can’t afford to leave. What do you do?

  • Talk to God first. Take this matter to the Lord in prayer…and ask others to do so with and for you!
  • Seek Him. Trust that He will provide the wisdom, resources, and the options that will provide for your needs. God KNOWS your needs. Take it before Him and watch Him be your great provider in this area!
  • Talk to your family.  See if there are options within your own immediate or extended family.  Someone might have a cottage house or a space that you could move into in order to save to purchase a home or move on to your next living situation.  If absolutely necessary, they can potentially help you pay for the rent increase.  Approach your family with humility, both to tell them about your needs, but also to hear what they have to say…and you may need to accept any correction that may come your way…(humility is a key here!)
  • Talk to your church leadership. See if there is someone within the church, possibly a widow or widower with a spare room that they could let you stay in for a bit. Though not ideal, and should be considered the last resort, the church could potentially help you cover some or all of the rent increase for a season if there is no other option.  Approach your church with humility, both to tell them about your needs, but also to hear what they have to say.

 

Stewardship Application

As we shared in the opening, and as you already know, we are living in very challenging economic times. 

“When asked about the overall state of their personal finances, 34% of Americans said they’re either struggling or in crisis. Just over half of Americans (51%) said they were having difficulty paying their bills in the past three months, and 42% said the same thing about paying for food” (Ramsey Solutions). 

And living paycheck to paycheck is how 61% of people are surviving today! 

  • “Are not two sparrows sold for a penny? Yet not one of them will fall to the ground apart from the will of your Father. And even the very hairs of your head are all numbered. So don’t be afraid; you are worth more than many sparrows.” (Matthew 10:29–31, NIV84)
  • “And why do you worry about clothes? See how the lilies of the field grow. They do not labor or spin. Yet I tell you that not even Solomon in all his splendor was dressed like one of these. If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you, O you of little faith? So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well.” (Matthew 6:28–33, NIV84)

If this is you, it is time to not be like the pagans as stated in Mat. 6, but TRUST GOD!  Take this need before Him, over and over again.  Ask others to do the same for you!  

You ARE a child of God. The next time your landlord raises rent, remember that HE will care for you SO much more than the birds of the air, or the lilies of the field. Budget and spend wisely, pray continually, and trust your Heavenly Father to be the provider of all your needs, including putting a roof over your head!

 

Next Steps

 

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