Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
First, this is through a management company, not the owner directly.
I've been living in a house for a year. Cheap, $420 rent, security deposit was $395. Lease expires this month and I read the new lease and my lease reads new first months rent of $815 (420+395), with 11 months of $420. So, naturally I call up to ask wtf and they tell me "Oh we are raising all our rent and doing away with security deposits, and we want you to agree to put your security deposit towards the new rent" I told them I'd have to think about it before I signed a new lease. They said I could still sign another year of the original lease if I want, but I want your opinions first.
To me, it seems really crooked. Basically "we're keeping your deposit, have a nice day". We've enhanced this property since we got here, very much the opposite of damaging it to justify them taking our deposit. (We've cleaned up the yard front and back, replaced some insulation in the basement that was shredded by the rats we got rid of after moving in, planted a ton of grass in the yard, etc.)
I want to stay in this place, the location is convenient and our neighbors are good. Thanks for any words of wisdom.
It doesn't really make sense to me. Did you ask them what happened to the deposit that they have already? It doesn't look like the rent is going up based on your description, it looks like they are adding the security deposit into anyone's first month rent, which is weird. Are they no longer taking security deposits from anyone? Or is what they are saying is that the first month is now $800 whatever, and no one will ever get a security deposit back?
To me your original security deposit should be held until such time as you leave and then if there are no charges against it, they have to return it to you. I suggest getting out your old lease and asking them if you can have it now since the new lease is so odd.
If they are offering you the option to have the same lease as last year and you want to stay there then ask to sign the same lease you had before. Then you have a year to decide if you want to stay knowing they may not give you the same offer next year.
So, what this really means is the new monthly rental is $452.92 and they are absorbing your security deposit (instead of returning it) to cover the $32.92 monthly increase. If you believe the new monthly rent amount of $453 reflects proper market value, why not just go with it? Or, you can ask they roll the security deposit as a total 12 month credit and simply reduce your monthly rate to reflect the credit ($453 x 12 = $5436. less $395 =$5041/12 = $420, no change in rent).
However if you believe $453 is over market and, let's say $440 is more correct, do the same math as above and use your security credit to reduce the 12-month total rent and have your monthly rate be 1/12th the correct annual rate less the credit. At a market rate of $440, with the credit you actual rent should be about $407.
So, what this really means is the new monthly rental is $452.92 and they are absorbing your security deposit (instead of returning it) to cover the $32.92 monthly increase. If you believe the new monthly rent amount of $453 reflects proper market value, why not just go with it? Or, you can ask they roll the security deposit as a total 12 month credit and simply reduce your monthly rate to reflect the credit ($453 x 12 = $5436. less $395 =$5041/12 = $420, no change in rent).
This is exactly what they want. I think a 9% increase in rent after 1 year is ludicrous. It is actually on the high side. Initially they only wanted $395, but I pay $25 extra a month to allow my dog to lay on my sofa all day.
This is exactly what they want. I think a 9% increase in rent after 1 year is ludicrous. It is actually on the high side. Initially they only wanted $395, but I pay $25 extra a month to allow my dog to lay on my sofa all day.
So the real issue is not how they plan on collecting the rent, it is in fact the rent increase. Decide what you believe market rent is for your place. Perhaps a 9% increase seems high but $453 is really what the place is worth and it will mean you still have to pay $450 somewhere else to get the equivalent house. If so, then you have to decide if, out of objection to a 9% increase, you will be willing to move to an equivalent place and pay the same as the new rate. Or, if you really do think $450 is too high for what your place provides, move and get something at a better rate, or a better place at the new rate. Or, try and negotiate another rate for your current place.
Bottom line, what is the place worth in the market?
So the real issue is not how they plan on collecting the rent, it is in fact the rent increase. Decide what you believe market rent is for your place. Perhaps a 9% increase seems high but $453 is really what the place is worth and it will mean you still have to pay $450 somewhere else to get the equivalent house. If so, then you have to decide if, out of objection to a 9% increase, you will be willing to move to an equivalent place and pay the same as the new rate. Or, if you really do think $450 is too high for what your place provides, move and get something at a better rate, or a better place at the new rate. Or, try and negotiate another rate for your current place.
Bottom line, what is the place worth in the market?
It's not worth $450, thats for sure. The neighborhood is primarily trailers (mine and my neighbors as the exceptions), and is a high drug, high crime area. I think I will go talk to the management company when I get home and try to negotiate a lower price.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
