4 ms·

Additionally the 3% rent increase theory may be true in aggregate, but doesn't take into account the real world practices of landlords. It's exceedingly common

Additionally the 3% rent increase theory may be true in aggregate, but doesn't take into account the real world practices of landlords. It's exceedingly common to list a property for a low lease then jack it up after the first lease term. They understand the friction of moving puts them in a better bargaining position the second year vs. first move in. As a whole rates may increase 3% per year, but individually it will look more like a 7-10% increase the first year followed by 3% increases thereafter, unless you move.

staunch 15y ago
All it takes is a renter willing to call the bluff to prevent that. Nothing is more expensive than no rent for a month or two.
dantheman 15y ago
Normally your renters agreement will have a clause saying that they can only increase the rent by X% a year. If they want to go above X then they need to give you one years notice. At least my rental agreements have looked like that.
- pstack 15y ago
  In my experience, leases are exactly the opposite. You sign a lease for up to a year and are locked in at a certain price over that year and they do whatever the hell they want to when it comes time to renew your lease for the following year. Your option would be to switch from annual lease to monthly, but you're often looking at paying double the monthly rent, then.
  - dantheman 15y ago
    Yeah my option is an annual lease, they can only change the rent @ the end of the lease (that's why the minimum when they go above the max is 1 year - basically you always have @ least a year at a predictable rate).
ojbyrne 15y ago
I've rented for most of my life, and never seen that happen. In fact most leases I've signed switch to month-to-month after the first year, thus decreasing the friction.
- pstack 15y ago
  When I rented last, my lease switched to month-to-month if you didn't sign up for a new term, too. It went from (at the last number) $1,200/mo under lease to something like $1,900/mo without a lease.

staunch 15y ago

All it takes is a renter willing to call the bluff to prevent that. Nothing is more expensive than no rent for a month or two.

dantheman 15y ago

Normally your renters agreement will have a clause saying that they can only increase the rent by X% a year. If they want to go above X then they need to give you one years notice. At least my rental agreements have looked like that.

pstack 15y ago
In my experience, leases are exactly the opposite. You sign a lease for up to a year and are locked in at a certain price over that year and they do whatever the hell they want to when it comes time to renew your lease for the following year. Your option would be to switch from annual lease to monthly, but you're often looking at paying double the monthly rent, then.
- dantheman 15y ago
  Yeah my option is an annual lease, they can only change the rent @ the end of the lease (that's why the minimum when they go above the max is 1 year - basically you always have @ least a year at a predictable rate).

ojbyrne 15y ago

I've rented for most of my life, and never seen that happen. In fact most leases I've signed switch to month-to-month after the first year, thus decreasing the friction.

pstack 15y ago
When I rented last, my lease switched to month-to-month if you didn't sign up for a new term, too. It went from (at the last number) $1,200/mo under lease to something like $1,900/mo without a lease.