Did Your Rent Cost Just Skyrocket? Here Are Some Options

Did your rent just shoot up big time? I hear ya. I’m not sure what it’s like in every neck of the woods, but here in Florida, renters have had to deal with some shocking increases recently. In fact, most of the nation’s top 10 steepest regional increases happened in Florida. Fort Myers took the “win” with an average rent increase of 32.4% betweem 2021 to 2022.

That’s largely because Florida doesn’t have any rent control legislation. But this is not a state-specific issue; across the United States, rent has increased an average of 17% per month!

If this is happening to you, you’re not alone. And like everyone else, you’re probably wondering what you should do next.

Here are your options – including a few you might not love! 

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1. Yes, you’re allowed to haggle with your landlord

Before you lose hope and start browsing local listings, you might as well try to keep your current place. Even if it feels awkward, counteroffering is a normal option, especially if you have a compelling story. Heck, leaning into my identity as a single mom, I successfully haggled to bring down my son’s private school tuition a few years back.

 

“Across the United States, rent has increased an average of 17% per month.”

 

To be clear, this is more effective if you’re speaking to an individual landlord, as opposed to a property management company. But you never know, and it never hurts to try. Before you do, you should take some time to research your local renter’s laws. They’re different in every state, and knowing what leverage you may or may not have is extremely useful going into the conversation.

2. Analyze your life, then downsize or downgrade your needs

If you’re on a strict budget or can’t budge on your current rental rate, it might be time to downsize. This might mean losing square footage or sacrificing amenities, like a pool or spacious yard. Truly consider your “wants” versus your “needs”.

Get creative! For example, my sister-in-law is currently renting our guesthouse for overnight stays. Even though it’s less comfy than what she originally wanted, the arrangement saves her a lot of money.

Many websites allow you to browse potential living spaces by specific features, right down to appliances. You might be surprised what impacts rent, and what you can easily live without.

3. Doublecheck your financial trajectory, then… buy a house

I can already hear your exasperated sigh, but wait! While the housing market is at a premium right now, experts actually advise against waiting if you’re even remotely thinking about buying.

It might actually be a good idea to get in before prices get even higher. And if you think you aren’t anywhere near ready, how about a fact-check on that? For instance, if this will be your first home purchase, you can qualify for the First-Time Homeowner Tax Credit, which is $15,000. Consider meeting with a mortgage broker to assess your options.

But what about the down payment? There might be some people in your circle sitting on little nest eggs who might be willing to help out (ahem, parents), or it might be worth pulling from your retirement to invest in real estate. Once again, this is especially true if you’re lucky enough to have a guest house you can rent out to help refill that account.

4. Research all the rent-to-own properties near you

If you’re on the fence about buying, there’s an alternative: rent-to-own. After my Florida-based cousin received notice that her rent for her apartment would be increasing 25% over the previous year, she took this as her cue to buy a house. However, her credit score wasn’t quite there yet. Thus, she decided to look into getting a rent-to-own home, which would allow her to build her credit while setting aside money for a down payment.

Here are the positives:

• You’re basically still renting a property, but have secured the right to purchase it at a certain point (for example, after three years)
• Some of the money you’ve already put into rent goes toward the purchase, essentially like a down payment (score!)
• You don’t have to wait until you’re the official owner before you start making the home feel like your own
• In most cases, as long as they don’t require a permit or structural changes, you should be able to make any cosmetic updates, such as installing new countertops, cabinets, and floors  

And now for the cons: 

• Your interim rent will be higher
• If you ultimately opt out of the arrangement, you will lose that money
• Depending on the contract, you’ll likely be responsible for the maintenance of the property, which may include fixing and replacing appliances

This arrangement can come with specific properties, or you can work with a financial institution like Divvy or Expensify, which will purchase a home of your choosing and set up a rent-to-own arrangement with you.

Full disclosure: Though my cousin loved the rent-to-own option, she couldn’t find a “perfect-for-her house” before her lease was up, so she’s actually keeping her apartment in spite of the 25% rent increase for another year. 

However, this does raise an important point about how you shouldn’t always rush into buying a new house. You still deserve the house of your dreams, not just the first house you can lock down before your lease is up.

5. Take a deep breath and get a roommate

Ew, no. You’re a grown-up now? I totally get it, but hear me out.

At the end of the day, you can save a ton of cash each month when you live with roommates. It’s just a fact of life. In some areas, couples are moving in together sooner, or even staying together instead of breaking up just to save on rent. For the record, I’m not suggesting you have to stick it out with your ex. But if rent’s too pricey for one person, it might be just fine with two, and that’s something to seriously consider.

If the idea of finding a roommate on Craigslist or some random roommate app gives you the heebie-jeebies, I don’t blame you. What can you do instead? Reach deep into your personal network, because you never know if a close friend, your cool cousin, or someone else you enjoy being around is open to sharing a pad with you for a little while. 

6. Sigh! Live with family

While there’s a stigma about living in mom’s basement, I’m of the opinion that if that’s what it takes to get through a dismal economic situation, it doesn’t matter what anyone else thinks (and, let’s be real, mom will probably be thrilled). That being said, you could think outside the moving-back-in-with-your-parents box (or basement)! With my sister-in-law living on our property, she’s saving on rent, we have help with our mortgage, and we get an extra caretaker for the kids. It’s a win-win.

 

“At the end of the day, you can save a ton of cash each month when you live with roommates. It’s just a fact of life.”

 

One more example: My neighbor is planning a second-story addition as a separate residence for her daughter’s young family. If you get creative, you might just land on a neat new living situation that works for everyone involved.

7. Welp, just pay the higher rent

At the risk of sounding like Captain Obvious, I’d like to invite you to take another look at things and ask yourself: Can you make it work? Consider where you can cut other costs in order to redirect funds to your rent increase – even if it’s just for a little while, as you plan toward one of the other options on this list (like my cousin is doing).

One thing to remember as you think this over is that moving can be expensive, too, depending on how much stuff you have and where you’re going.

Make sure to weigh that cost against the cost of staying, do the math on moving, and consider all the fees associated with a new lease or a mortgage. Not to mention… you should ask yourself if you’re really ready to go through the stress of moving. For many people, staying put, at least for now, might just make the most sense.

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The average rent increase over the last year was indeed staggering, and we’ll likely continue to see outrageous rents for a while longer. Hopefully, for every renter’s sake, some legislation will come through soon to help provide housing stability. Until then, it’s good to remember that you’re not alone—and, of course, to consider all your options.