The image is from the same source.
Many people are breaking their budgets just to keep up with housing costs because they are paying more for it.
Rent is one of the largest monthly expenses, no matter where you live. If your lease ends soon, you may need to prepare for higher housing costs.
The US rents were up 10.2% on a national level compared to where they were a year ago. Your landlord may try to raise your rent if your lease ends in the coming months. If you're worried that will happen, here are a few important steps to take.
1. See how much you can spend on an increase.
If you're currently spending $1,000 a month on rent, you're pretty sure your landlord will raise it to $1,100 once your lease comes due. Even though you probably don't want to see your rent increase, you may not need to panic if you can afford that amount.
Take a look at your budget to see how much wiggle room you have. If you're getting a raise in the new year but have a lease that's about to expire in February, your higher paycheck may take effect before your housing costs go up, making a rent hike manageable.
It would be beneficial to see how your savings account is doing. If you can't afford a rent increase based on your income, but you love where you live and don't want to move, you may be able to dip into your savings.
It is a general rule that your earnings should cover your living expenses. If you have a lot of money stashed away, you may be able to dip into it if you have to stay in your home following a rent increase.
Rents are up right now, but they could come down in the future. If the money is there and you have enough left over for emergencies, that's not a bad thing.
2. Before you get a new lease, talk to your landlord.
Your landlord may want to raise your rent. If you make it clear that you can't afford it, your landlord might reconsider, especially if you've been paying rent on time for a long time.
Your landlord might be willing to negotiate a rent hike. Your landlord wants to raise your rent by $60 a month. Your landlord may agree to a $30 increase if you explain that your paycheck can't cover it.
3. You should look into your options for moving.
If you think your rent will increase in the near term to the point where you can't afford it, now is the time to start researching other rentals. It is possible that moving to a different neighborhood will help you get an affordable lease. Downsizing to a smaller living space may be necessary.
You'll need to factor in the cost of moving into your plans. If your rent goes up by $50 a month, you'll spend $600 to stay in your home for a year. If you like your current home and can find a way to scrounge up the extra money that will be charged by the moving company, you should stay put.
If you have friends with larger vehicles, you may be able to move for free. Take some time to think about what you want to do.
Rent prices are going to be very high, and this could make it difficult for a lot of people whose lease is coming due. If you think you're in line for a rent hike, take these steps to map out a game plan.
