Rental Increase-take it or go?? (Orlando, Daytona Beach: best cities, renters, insurance)

[USMC Fam]

We just received our lease renewal after completing our first year as tenants. We expected an increase but were surprised to see a jump from $1850/month to $2100/month (14% roughly). Is this a typical increase in this area (zip code 32792)? Upon initial signing the landlord stated she didn't typically raise the rent but if so it would be no more than $2000/month. We haven't rented in a few years and need a good and fair gauge. Our landlord stated she is having difficulty paying for repairs here (house is aprox. 20 years old) and there were an assortment of issues including the septic system (hadn't been flushed in 8 years), AC repair, etc. which I would expect based on age of home. We have two more years here before we move to our next duty station and feel concerned about next year's renewal increase, based on this one. She is unwilling to have a 2 year lease with us. Would you see this as a sign that it is time to find a new place (although we would prefer to not move, we can if necessary), any other options/ideas?
Appreciate your input-Thanks and Happy Independence Day!!!

[chopchop0]

The rental market in Orlando/Daytona and central FL is as good as the housing market is bad. Keep that in mind

It was even featured on CNN recently

Best cities to buy rental properties - Daytona Beach, Fla. (3) - CNNMoney

Best cities to buy rental properties - Orlando, Fla. (4) - CNNMoney

Look around at comparable rentals and come back to your landlord with other better-priced options (if they exist) and see if she'll budge.

[nixau27]

Wow! That's a big jump! I would go ahead and move if you're looking at staying in Orlando for 2 more years. I'm renting in the Avalon area, SFH, 4 BD/ 3.5 BA with an office, manned-gated, pool and I don't do mowing since it's covered by the HOA. $1400/mo. I'm in the process of buying a house (I hope) and the property manager just told us that she won't increase our rent if we renew (we always pay before the 1st). School district is good as well. My husband and myself both work near the airport, commute time for me is like 30 mins ( I don't take the toll roads). Zip is 32828. Look at other areas. For the budget that you have, you should not have a problem finding a nice SFH w/o any problems/repairs to contend with. Good luck!

[qdogfball]

Just looking at the Craigslist ads.. there are a number of homes with 3-4 bd that are under $1,800 near UCF area.

[boy3365]

Wow. And I was complaining about my $30/month increase. Check hotpads and padmapper too.

[The Frugie]

I did an MLS search for rentals in your zip code. Only one of them costs as much as what your landlord's asking for, and it's a pool home. Sounds to me like your landlord's getting greedy.

[totsuka]

You could move, but the cost of moving is about the same as the increased rent. I owned rental property for years and it is not an easy investment. The two bill killers are property taxes and insurance. In Florida, you can't legally homestead a rental property so the taxes keep going up and insurance is a commercial policy which is not cheap. Getting a septic tank cleaned is usually between 300-500 dollars, HVAC repairs can get high if the unit is not maintained or is a older/cheap unit. I'm surprised the landlord would risk losing a good renter, military, since you get money from the military to help with the rent. Check out
some other rentals and see if you can find a cheaper place. Check CL and see if you can find a guy that can move you or help move you, check the cost of renting a van too. If you got some good friends help you move. You can find day labor guys hanging out in front of Home Depot and get them for 7 bucks an hour to help you move if you get the van. It's tough renting at times, good luck.

[rick-FL]

Generically it is hard to say whether your rent increase is appropriate. Is it possible that the owner had a vacant home and wanted to simply get it filled so offered a lower rent? And now realizes others in the neighborhood are getting more? So it is only "too much" if you can get a similar home in the area for less. If that is the "market rent" then it simply means you got a deal last year.

Plus, rents are increasing due to the difficulty in many getting approved to buy a home. So that is keeping home prices depressed (although starting to see positive signs) which means higher demand for people renting. So rent prices are increasing too.

So the question is what other homes in the area (or similar homes in nearby areas) are renting for and whether it is worthwhile to pick up and move the family for what only amount to another $3000 or so a year. When you figure packing up all your stuff, renting a truck, taking a day off from work, etc. - is it worth it?

I have one more suggestion: Rents tend to increase about 4% or 5% a year. Why not tell your landlord you will accept the new rent IF the new contract has a one or two year option at a specific rent increase (say 4%). I have often wondered why renters find it okay to accept only a one year lease. You move a family in, get settled, and then BAM!! landlord raises the rent. Tell the landlord (nicely) that you would like one (or maybe two) one year options at the end of the lease term at a specific rent or limit (say the contract says rent cannot rise more than 5%). That way you can plan your cashflow. Or even offer a two-year lease and lock in a rental rate for 24 months if you don't see any reason why you won't be there. There are ways you can protect yourself from unlimited rent increases.

[mco2abq]

Totsuka is right. The cost of moving might be as much or more than your rent increase. My husband and I looked into moving for the same reason, but once we figured in security deposit, increase in gas money and movers, it was more than the increase in rent. We're staying one more year, but setting aside a little bit of money each month in a special "moving" savings account. Your bank should be able to set it up for you. I'd do some serious figuring before moving. Rent $$ ANYWHERE in this area is going to be high. If where you are now is generally quiet and peaceful, you might consider staying awhile longer. As a lifetime renter, I can tell you that one never knows when they might encounter the upstairs neighbor with the incessantly yappy dog, the teenage drummer with insomnia or the college party-ers with no morning classes (although I often envy them). Orlando is a high rent district, and even with decent credit, mortgage lenders aren't lending...which causes landlords to increase rent.

[YesButAlsoNo]

Notify the military and they will check it out and maybe find out this is price gouging.