Post # 1
We got a notice yesterday that our apartment rent would increase by $40.00 if we choose to extend our lease. Last year it also increased by 40. We started out paying 600/month and now 2 years later we are paying 80 dollars more for the same thing. Is that a normal amount? It seems like a lot to me. The apartment hasn’t been updated at all, nothing has gotten better and we’ve lost LOTS of neighbors. Compared to the area we could find a better deal at another complex. (We don’t want to move though as we are trying to buy a house and would like to stay until we do- since we’ve been there for over a year we can get out of the lease at anytime with a 30 day notice) The apartment is only half full we haven’t had bottom neighbors since we moved in and the 2 first floor apartments have been vacant for the past 4/6 months.
Should we say something to management or just extend the lease? If you rent how much does your rent usually increase by each year?
Post # 3
Well, when our lease ended March 31, we had to start going month to month because my curent job situation is up in the air and we will hopefully be moving in the next couple of months once I get a new job. So our rent increased by over $300 to go from a lease to month-to-month.
If we had signed a new 12-month lease, our rent would have increased by $50 I think.
Post # 4
We live in NYC, where prices are notoriously higher, but our rent has varied by a lot over the five years we have lived in our apartment. We are currently paying $225 more than when we moved in, and they have raised our rent $25 for next year. But this is actually lower than we were paying 2 years ago– the second year our rent shot up by $300! Then the market fell into the tank and we were able to negotiate a lower rate.
Anyhow, a $40 increase sounds reasonable to me, but I would recommend talking to your landlord to see what they can do for you. We do this every year and sometimes we’re able to lower it, sometimes not, but it doesn’t hurt to ask.
Post # 5
our rental increase is governed by the guideline set every year by the Ministry of Municipal Affairs and Housing, and can only be raised every 12 months.
The annual rent increase guideline is based on the Ontario Consumer Price Index (CPI). The Consumer Price Index is released monthly by Statistics Canada and is widely regarded as a reliable and objective measure of inflation.
The 2011 rent increase guideline is calculated by averaging the percentage change in the Ontario Consumer Price Index during the previous 12 months from June 2009 to May 2010.
So while last year was 2.1% , this year is only .7%. Which means my rent goes up 6$.
Over the 12 years Fiance has been living here, the rent on this place has gone up 244$, but its still significantly below market rate.
Post # 6
If we had stayed at our first apartment our rent would have gone from $1600 to $1700 but that is because the landlord redid the bathroom and put in a washer/dryer unit. Have you guys thought about signing a 2 or more year lease? We only rent from private landlords (instead of management companies) so normally we dont have any increase in rent.
Post # 7
Our rent has increased $25 each year we’ve been there.
Post # 8
I rent, but it’s by the owner, so my rent has never increased. When I move to my FI’s town we will be living at an apartment complex managed by a coporation. I’ve heard it is very normal to have an increase every year at the end of the lease. I think it’s ridiculous, but normal I guess. Boo. Hopefully by then we’ll have saved enough for down payment on a home 🙂
Post # 9
I own two rental properties and I have never increased the rent on my tenants when they extend their leases. In my opinion, I am lucky to have them and I would rather them stay happy and keep living in the house than move out over a rent increase. Maybe if I had someone stay 5+ years, I would think about approaching them with a slight increase, but nothing before then.
I would call your management company and negotiate. They currently make $7,680 annually from you, and i doubt they would let that go for $40 extra/month.
Post # 10
@bebefly: The smart and fair Canadian way wins again ;-). Love Canada!
OP: I think you have a lot of leverage, given that they have a lot of units open, to negotiate with them. You could point out that they have lots of vacancies, and that it decreases the property value, thus making the increase unfair. You could also try and negotiate for improvements instead of negotiating down the increase. Our rent has not increased in the 3 years we moved into our apartment, and did not increase in the two apartments before this. Only my college apartment saw increases – and that was never more than $30/month.
Post # 11
that’s pretty good… our’s just increased for $55 for a 12 month lease 🙁
Post # 12
Ours has increased about 40 bucks a month as well.
Post # 13
It doesn’t sound completely outrageous to me. If you feel comfortable talking to management about the fact that the building is half empty you might have some bargaining room to at least reduce the increase.
My apartment is rent controlled so the increase this year is a whole $2.96. Just got the notice this morning.
Post # 14
Our rent goes up about $50 each year but we our rent is $1000 and that is about 5%, which I hear is average.
But I see that your rent goes up about 6.5% each year.
You could always try negotiating it. My husband (FI at the time) told them last year that we were saving up a wedding and so they were able to lower it for us. It also helped that we always pay on time and we are very good tenants.
Post # 15
How would I go about negotiating? I’ve been looking up other rental places in the area. There is one literally across the street that is larger and 10 dollars cheaper. We live in the county, not a big city and our apartment is not high end or anything. We can easily afford the increase but thats not the issue, I just don’t think we should have to pay that much more when rent costs have actually been declining in our area.
*We are also really good tenants IMO. Never been late (we always pay rent a week in advance) and we have never complained.
Post # 16
mines went up by $250 in one year…..uggghh…but if we resign they will knock 50 off. so technically $200.