A couple of days ago, I received an email from our landlord, notifying us of a $60 per month rent increase from $1,035 up to $1,095 per month, “due to unprecedented increases in costs“. In the past 3 years, since the new owners took over, our rent has increased from $925 to $1,095, an increase of $170 in 36 months. which I think is too much for an average rental home, located in a less desirable area of the city.
I could literally own this home for about $200 less per month, but because of the current high rental rates, people like me cannot save money for a deposit, and associated home buying fees. This is also true for moving to a different rental home, we don’t have the cash on hand to pay a month’s rent as a deposit, plus the prorated rent, which could be another full month if we move on the first of the month.
I’m sure that we will also be screwed by the current landlord, although I could fight this, as I have never signed a lease with the current landlord. I am still on a holdover lease from the previous owner, on a month-to-month lease. I really don’t want to sign the new lease, simply because I don’t agree with many of the terms, which shift many of the maintenance costs & responsibilities from the owner to the tenant. Such as if a window gets broken, because of a storm, the tenant has to bear the cost to fix it, not to mention pest control, changing HVAC filters, and they expect you to leave the home in move-in ready condition after a decade of residency, so I expect a huge bill come the end of our tenure at this house.
Another thing to consider, our electricity bill is on an average payment plan, equalizing the costs per month, instead of seeing significant spikes in costs during higher usage months, like high summer and the coldest winter months. We would lose this for one year if we move to a different home, increasing our monthly costs. With our internet, we are fortunate to have symmetrical 1Gb AT&T Fiber internet, with no data limits for $90, if we move, we could be paying a lot more, having to pay $120, plus overages or paying a premium on top for unlimited from Cox, as AT&T Fiber is not available everywhere in the city.
I work in the property management industry, so I know how rental rates are exploding. Homes that used to rent for $1,000 are now renting for $1,250, which, despite working for a property management company, I don’t earn enough to rent. To qualify for a $1,250 home, I would need a 20% increase in salary. Our standards are that a resident would have to make 3x the rental rate to qualify, some other rentals require 2.5x the rental rate as income, which would qualify us for a $1,260 per month home.
So, the bottom line, is we are kinda stuck, rent is too high, but we can’t afford to move, based on my income. My wife’s income has been sporadic, being in and out of work for the past several years. And as of August 2022, we will be losing $1,100 per month due to our son turning 18, and his absent biological father will stop paying child support. I would love to feel more positive, but after years of working our asses off, the “American Dream” is no closer after almost 15 years, and we’re not getting any younger.