Anyone’s day would be ruined if they received notification from their landlord that their rent was going up. Unfortunately, this anxiety-inducing reality has been playing out across the country, with tales of rental prices reaching all-time highs dominating the news on a daily basis.
It’s time to start thinking about your choices for coping with a rent rise once the initial shocks have worn off (and the superlatives have faded).
BUT FIRST AND FOREMOST, YOU MUST ACKNOWLEDGE WHY YOUR RENT IS INCREASING.
Landlords may opt to raise rental costs to keep up with market rates, pay for property maintenance or upgrades, accept tax hikes, or just boost profits. The rental market, like other sectors, reacts to economic changes, allowing landlords to charge more or less rent depending on their location. But why is the rent going up so much?
Most landlords don’t raise their rent on a regular basis to keep up with the rising costs of owning and maintaining a property. After five years of consistent rental prices, the owner will recognise that an increase in rent is required to keep up with rising property taxes, upkeep, and market rates. After 5 years of low rent, you may see an increase of 10 to 25%. For many tenants, a 25% rise may be enough to push them out of their existing apartment.
SO, YOU GOT A RENT UPGRADE OF 25% (OR MORE!) – WHAT DO YOU DO NOW? IS THIS EVEN PERMITTED IN THE MALAYSIA?
Yes, that is most certainly legal. Landlords have the freedom to charge whatever rent the market dictates. On a month-to-month lease, state regulations regulate how much notice a landlord must offer before raising the rent. If you’re on a lease, the good news is that your landlord can’t raise your rent. Even if your lease changes to a month-to-month contract, he can raise the rate as soon as the contract expires. Only if you believe your landlord is raising the rent in retribution for your tenancy would a rent increase be considered unlawful. If you believe this, is you, you should call a landlord-tenant lawyer right once to begin constructing your case.
IF YOUR RENT IS SOON TO INCREASE, DO THE FOLLOWING:
Seek Some TIME TO CONSIDER IT.
You don’t have to take decisions whether you’ll remain or leave today. However, you must develop a strategy to consider your money. Housing costs should account for 30% of your total income (including utilities). If the new rent is going to put you out of your household budget, you’ll need to find a less expensive apartment. Do not add to your financial stress by residing in an unaffordable location. If you really can finance the new rent but refuse to pay it, conduct some market research to discover what else is available. You could find that rents have risen across the board in your neighbourhood, and your landlord is asking for a fair rate. Is it worthwhile to incur the costs of relocation in order to obtain a comparable home with comparable rent?
Try negotiating IN A REASONABLE MANNER.
Have a professional and honest chat with your landlord before you start paying the higher fee or looking at rental advertising. Inform your landlord that you are concerned about escalating rent rates and will most likely have to relocate. You could discover that he appreciates you as a renter and would agree to a lower rent increase to keep you. This strategy will only work if you get along well with your landlord and have a track record of paying your rent on time. You must expect him to say no. It won’t hurt to inquire, though. Always remain professional, considerate, and rational, and never become enraged or aggressive. We have heard of tenants successfully negotiating a 10% rent increase down to 5%, with the understanding that the rent will rise another 5% in a year, but at least it’s not such a big spike. If you’re rude or aggressive during this chat, your landlord will almost certainly be relieved that you’re leaving.
INQUIRE ABOUT SIGNING A LONGER FIXED-TERM LEASE.
During a fixed-term leasing contract, your landlord cannot raise your rate. If you’re restless of your landlord increasing your rent every year, ask if you can sign a one- or two-year lease. This means you’ll have to commit to remaining in that home, but if you don’t plan on relocating, you’ll be relieved to know your housing costs will be steady.
In most situations, your landlord will agree to a lengthy lease since it eliminates the need to deal with property release, turnover, or vacancy. If you have a track record of timely rent payments and a positive landlord-tenant relationship, your landlord should be willing to sign a long-term lease arrangement with you.