Just wondering if it's standard to have regular rent increases. I lived in Australia for the past 10 years so have been away for a while. Over there renting is more regulated, and there are "rental inspections" every 3 months to make sure the place isn't being trashed :)
Anybody have anything to share?
My last apartment I had for four years and they didn't raise the rent, same for the apartment I had for the four years before that one.
Now I have a house which we rented in May with a one year lease. I guess it's up to the landpeople if they want to raise the rent at that time, but they seem pretty cool and laid back so I'm hoping they keep the rent as is. We do keep the place pretty spectacular and the only thing we've done was hang a pot rack and some pictures so in theory they could raise the rent as it's not regulated, but I'm keeping my fingers crossed they don't.
With the house I rented recently, I didn't have a rent increase the second year.
It probably depends on the landlord's tendency or preference.
I did read recently that because of the problems in the housing industry, mortgages will be tougher to get, which means that rents will go up. The harder hit the area mortgage-wise, the more that rents will go up.
unless I misunderstood...
each state makes its own laws that regulate the tenant-landlord rights and obligations - but I've never heard of one that didn't permit rent increases... just that they have to give you a certain amount of notice before the increase takes effect.
Here is the section on rent increases:
How often can rent be raised?
If you have a lease for more than 30 days, your rent cannot be increased during the term of the lease, unless the lease allows rent increases.
If you have a periodic rental agreement, your landlord can increase your rent, but the landlord must give you proper advance notice in writing. The written notice tells you how much the increased rent is and when the increase goes into effect.
California law guarantees you at least 30 days' advance written notice of a rent increase if you have a month-to-month (or shorter) periodic rental agreement.
Under the law, your landlord must give you at least 30 days' advance notice if the rent increase is 10 percent (or less) of the rent charged at any time during the 12 months before the rent increase takes effect. Your landlord must give you at least 60 days' advance notice if the rent increase is greater than 10 percent.101 In order to calculate the percentage of the rent increase, you need to know the lowest rent that your landlord charged you during the preceding 12 months, and the total of the new increase and all other increases during that period.
I've lived in the same apartment for 2.5 years, without a rent increase. However, since I work at the complex, I can pretty much guarantee that when my lease is up in january my rent will go up then. Rates depend on the same things that prices of anything do...law of supply and demand, and the costs associated with running the business. So if the housing market sucks, rent will go up because the landlords know they can raise it and get what they ask for. If costs such as property taxes go up, rates will be raised. If the housing market starts looking good and occupancy rates drop, then rates will be lowered to compensate.
It depends really. Take a look at comparable rentals owned by companies, not individuals. They are market rent. Individuals are almost always below market rent by a considerable percentage.
Also what utilities do you pay for at your rental?
Try talking to the LL. Can't hurt. I think that is a big increase and wouldn't like it.
Or move to Ohio. My 2/2 is $440 a month. (but an old building)
A friend told me yrs ago, "one thing sure about rent is that it will always go up".
I live in Japan, and there is a HUGE glut of apartments in the city I live in (and yet they keep building more) So I pay less than half for twice as much apartment as I had in San Francisco, about $600-650 for a 3 BR story townhouse - and a lot of people here think that's a bit on the high side! There are plenty of places well under $500, so no, they are not raising our rent regularly, though inflation may eventually force a small incremental raise, but it's not every year.
Unfortunately, high house prices combined with the new stringent loan standards are driving more people into the rental market in the more expensive cities, which is driving rents up. Don't feel bad, at least you're not stuck in a house bought at the height of the speculative bubble of 2001-2005. Prices in many cities still have quite a ways to fall.
Original Post by figurethefat:
Hmm, with the housing market in the toilet I would have thought there would be more rentals available which would put downward pressure on rents. I know my property owner doesn't have an adjustable rate mortgage, so I can't see what would be more expensive for her... I just have to accept it, but whereas I thought she was a cool lady before I have changed my opinion. The good thing is she leaves me alone and I can have my dog here!
It's the opposite. Marginal would-be buyers who might have been able to get a shady loan a couple of years ago are now forced to rent, increasing the demand for rentals.