The Cost of Rent Has Gone Up in Many Cities
- With the economy slowly returning to normal amid the pandemic, many states have experienced their rent prices increasing.
- With the cost of rent rising, it is crucial to determine whether the new price determined by your landlord will affect your financial situation.
- Below are some ways to determine if you are overpaying and reduce the price rise of rent imposed by your landlord.
The COVID-19 pandemic brought a temporary break to the increase in rent. However, with the economy slowly beginning to open up again, many landlords across the country have started raising their prices. Many major cities, such as New York and Austin, San Francisco, and Austin, have begun increasing their rents by 30%, 18%, and 40%. Thus, determining whether you are overpaying is vital due to these increasing rent prices.
How to Know If You Are Overpaying for Rent
The amount of money spent on rent each month could significantly impact your personal finances. As a result, it is essential to check whether or not you are overpaying for your place of residence.
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A website named openigloo.com has a rent calculator solely for those who live in New York City to help them determine whether or not they are overpaying for their housing costs. Although this website is limited to the residents of New York, another way you can cross-check whether the amount you spend on rent is too high is by accessing websites that show your local rental markets.
These websites will allow you to get a rough idea of the average rent in your area and help you determine if it makes more sense to move elsewhere after your lease is up if you are overpaying.
How to Combat the Rise in Rents
Over time, the price of rent everywhere will go up; however, there are certain steps you can take to help minimize the amount of extra money you pay at the end of each month.
Read Your Rental Contract
One critical thing to keep in mind, especially if you are coming towards the end of your lease, is to read your rental contract regarding a rise in the cost of the rent. Although landlords have the authority to begin raising rent prices, some states have said landlords must provide residents adequate notice regarding a change in the rent price so the residents are not caught off guard.
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Furthermore, specific criteria may be outlined in the contract regarding how much the landlord can increase the rent price. Thus, this information is essential so your landlord does not overcharge you.
Renegotiate the New Rent Price
If your landlord tells you the new monthly rent and you feel it may be too high, you can renegotiate with them. Before the negotiation, do some research on your local rental market and determine a range or estimate for the monthly rent. This information will become handy in the negotiation process and could lead to a smaller rise in the rent price.
If you do end up receiving a smaller rise in rent than expected, it is a good idea to put the amount of money saved towards either a security deposit or renter’s insurance.
Ask for a Raise at Work
If all else fails with lowering the rise in your rent, ask for a raise at work to help you accommodate the increase in your living costs. As inflation increases the cost of living, a raise would help improve your household income and allow you to pay the higher rent prices.
You spend most of your income on housing costs, and as rent increases, there is a lower amount of money left over for you to save, invest, or use for personal pleasure. Therefore, by following the steps mentioned above, you could potentially lower the rise in rent or receive a raise from your place of work to help you combat the rising costs of living.
What are some other ways you can fight the rising rent prices? Please share your thoughts with us in the comment section below.
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