New trend in rent raising?
Q. I have been a renter for many years and I have noticed a recent trend among the larger local management companies where they are now seeking to renew a long-term tenant's lease at the market rate rather than continuing to give them some sort of price break compared to brand-new tenants. Is this a new strategy that is being implemented throughout the country or just my imagination?
In the case of my apartment community, I find this very puzzling, as our community is not at full occupancy and there is no "waiting list" to get in. In fact there are several vacancies in my building alone. I'm just wondering whether my local manager is just being a jerk, or if it's simply the corporate attitude lately that "who cares if we drive them out ... somebody else will be along eventually"? In my 37 years of renting, I've never been asked to renew at the market rate if I signed a new lease. Of course, I do understand that if I wanted to commit to a month-to-month rental agreement and declined to renew a lease that this would be a reasonable policy in my view. What are your thoughts?
A. Different owners have different philosophies, but I do not think this is a new trend. I still recommend that landlords recognize long-term tenants with at least a slight discount in the rent (even $10 to $25 per month is appreciated), but not everyone feels the same way. These decisions are usually made at a higher level than your onsite manager so unless they tell you it was their decision, then it was likely the owner or at least a mid-level manager.
I suggest you send a cordial letter explaining that you have been a loyal tenant and even while your tenancy began under different ownership that you intend to stay and that you would appreciate them giving you even a modest rent break for a lease renewal to acknowledge you have been and will be an excellent tenant. I would hope that would compel them, but the worst-case scenario is they will just move forward with the market-rate renewal.
© 2008, Inman News Features