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Receiving notice of a rent increase can be a challenging experience for tenants, often stirring feelings of anxiety and concern about the future. Rent represents a significant portion of many individuals’ or families’ monthly budgets, and any rise can lead to financial strain. Understanding the implications of a rent increase and the options available to tenants is vital for navigating this often unsettling scenario.
In many cases, landlords may increase rent to keep up with market trends or cover rising property maintenance and management costs. This practice is particularly prevalent in urban areas where demand for rental properties frequently outstrips supply, leading to competitive pricing and higher rents.
The emotional impact of a rent increase cannot be overlooked. Many tenants may feel a loss of stability or security, especially if they have lived in the property for an extended period. For some, the prospect of a rent increase goes beyond financial concerns—it can signify a forced move and the stress associated with relocating. Finding a new home, packing belongings, and adapting to a new environment can be overwhelming, particularly for those with established routines or families.
Ultimately, it is essential for tenants to adopt a proactive approach when dealing with a rent increase. Understanding the rental market, knowing their rights under tenancy laws, and fostering open communication with landlords empower tenants to respond effectively to financial challenges. While a rent increase can be a source of stress, it may also serve as an opportunity to reassess one’s living situation and financial priorities, leading to more informed housing decisions for the future. This reflective approach not only addresses immediate challenges but can also pave the way for greater financial stability in the long run.
Here are five things you can do when your landlord increases rent:
Review the initial agreement
According to a Lagos-based dispute resolution lawyer, Ayokunmi Alabi, tenants who receive notice of a rent increase should revisit the terms and conditions of their tenancy agreement to confirm whether the increment or the process for determining it aligns with the rent review clause.
“If it does align, then there is no problem. It equally means the tenant was most likely carried along because a rent review clause will include the method of initiating the review, the time frame for the review, the method of calculating the review, and the procedure for resolving disputes.
“Therefore, in times of dispute where there is a rent review clause, the resolution will also be in line with the agreement, and the onus is on the landlord to show that they complied with the agreement,” he explained.
Seek formal negotiations
Where the agreement does not include a provision for a rent review clause, or if there is no agreement at all, a landlord should not unilaterally increase the rent.
Alabi said, “If this happens, it is essentially an offer to the tenant, who can either accept, reject, or officially write to the landlord seeking to negotiate the rent to something reasonable. Where attempts to resolve the dispute reach a deadlock—whether an agreement exists or not—the tenant has the option to apply to the court to declare the rent increment unjustifiable.”
‘Reason’ the landlord
A corporate practice lawyer, Maxwell Adigun, noted that communication is crucial in managing rent increases. According to him, engaging with the landlord can foster mutual understanding and potentially open the door to negotiations.
He said having a respectful conversation about the reasons behind the increase, the prevailing economic conditions, or the tenant’s history of timely rent payments could reveal opportunities for compromise. Such compromises might include a smaller increase or additional maintenance work to justify the higher cost.
“A good tenant-landlord relationship can often alleviate tensions and lead to outcomes that benefit both parties,” he explained.
Explore financial assistance elsewhere
In instances where the rent increase is unavoidable and negotiation is not fruitful, exploring financial assistance may be wise. So, if you are struggling to meet the new demands, consider exploring other financial assistance options.
Adigun added, “You can obtain a loan, reach out to friends or your family members to provide support. Many may feel hesitant to ask for help and view it as a sign of weakness or embarrassment. However, open communication with trusted loved ones can lead to support systems that provide temporary relief.”
Be open to alternatives
A financial advisor, Oluwole Oyeniyi, suggested that if the new rent exceeds your budget and negotiations with the landlord prove unproductive, it may be time to explore long-term alternatives.
He explained that this could involve searching for rental properties that align with your financial capacity.
“While relocating can be daunting, it may ultimately offer greater stability and affordability. Additionally, consider your future housing needs. If rental prices in your area are consistently rising, it might be worthwhile to explore property ownership or moving to a more affordable locality in the long run,” he advised.
