Avoiding rental stress in a rising market
Rising costs and tighter rental markets can mean that the cost of rent increases can prove challenging, especially if you need to be in certain areas for work, schooling or near to family or community groups.
Some things that are great to consider if you are renting are factors such as budget, affordability, and lifestyle.
Consider your budget
When working out the affordability of a property, consider your income and day-to-day expenses. Have a detailed plan of what is coming in and what is going out to have transparency around how much rent you can afford.
If you have your budget set, it will help when looking for properties within the price range that you can manage. You might like to have an ideal rent price in mind and also a stretch goal price that is a small percentage higher in case there is something that meets your expectations but is still in your affordability range.
Talk with your agent or owner
In the housing market, it is inevitable that at some point prices will increase. If you have been issued a notice for a rent increase, familiarise yourself with other properties in the area to increase your awareness of what is happening in the market.
In many cases, while rents may rise, most property managers and owners will consider the rise in market rates, your length of tenancy and your tenancy history before increasing the rent.
If you have been a reliable and long-term tenant of a property, you may like to try and negotiate with the agent, or your owner based on your tenure and the condition of the property.
Negotiate where possible
When rents rise, other living costs for day-to-day expenses can also increase. This is a good time to investigate your current plans and contracts such as phones, internet, insurance, and utilities and see if you can find a more affordable option.
The provider that you have been with for some time may not always be the best option and a call to talk about your options or look for a better deal can be a worthwhile investment of your time to ensure that you are saving the most that you possibly can on those living expenses.