Dealing with rent hikes

Rent increment is one of the most challenging situations for tenants. This normally happens towards the end of the year, when landlords start issuing notices informing tenants about the changes which are in the pipeline.

Normally, rent increment shocks tenants because it comes at a time when people are planning for the festive season and sometimes landlords do it intentionally to force some of them  to move out, especially rent defaulters

According to Charles Kigozi, a property manager, one must find ways to handle rent increment at any time as long as they remain tenant. He advises:

Ask for negotiations 

Kigozi says that if you get a notice of rent increment you should ask for negotiation space with the landlord in case you’re not ready or need some time to set yourself.

“It’s not a must for tenants to respond to the rent increment immediately after receiving the notice. You have a right to negotiate with the landlord to give you some time to analyse the situation,” he says.

He adds that sometimes landlords increase rent without considering the tenant’s concern about the rentals. It is advisable to share ideas before making any decision when the issue involves several partners.

During the negotiation process the landlord can reject all your proposals to postpone the rent increment date but he or she can reduce the costs depending on your reasons for extension. This can also work when you have been on good terms with the landlord

He adds that the landlord can agree to reduce the rent increment to keep you around if you have been a good tenant for some good time, especially when it comes to payment history.

Give it time

Kigozi says that you should take time to think about the rent increment. You do not need to decide there and then if you’re staying or moving out because in case of moving, there are tenancy rules to follow.

“If a landlord wants the tenant to move out of the house by force, he needs to give him or her a timeframe of three months [rent-free] to find another house,” he says. 

He adds that a tenant has a right to plan their finances. He or she may be able to pay the new rent but he might be having some issues which are stopping him or her from accepting the new rates.

“You might find that the landlord has personal debts and she wants to clear them with rent increment yet there is no other reason to do so,” he says.

He adds that if it’s a general trend, you may find that even the neighbouring landlords have done the same but this must be fair. The landlord should compare the increment and the income status of the tenants before issuing the notice.

“If you’re not in position to manage the rent increment you should look for a cheaper house so that you do not put yourself in trouble with the rent payments in future,” he says

Opt for a long term lease

Mr Kigozi says that you should sign long term leases with the landlord so that you do not face their constant rent increase notices.

“Make sure that whenever you get a new house you sign long term lease and this will give you a chance to stay in the house without fluctuating rent payments and this acts as a [line of] defence from your landlord,” he says

He adds that in most cases landlord agree long agreements especially when you’re paying in bulk and this means that they will not have to deal with releasing the property when you’re not informed.

Accept to move out

Moving out of the rented property is the last resort. If you do not want to fight with the landlord about your rights as a tenant, you can move out peacefully and look for a cheaper house.

“It does not mean that when your landlords increase rent, even others have done the same. You may find that they have different reasons for increasing rent so it’s better to look for another house,” says Kigozi. 

He adds that surprisingly moving away from the city can reduce your housing expenses though it may look harsh at first when you’re not used to the new place.

Note

It is advisable for the landlord to first inform the tenants about the changes before making any decision.  Sometimes these decisions result in losses when all the tenants decide to move out.

Before making any changes, you should consult several other landlords to know the situation in the area