Here’s what to do about a rent increase when your lease is up for renewal
With inflation and gas prices soaring since the start of the new year, Charlotteans are desperate to save money wherever they can.
It can be a letdown when you receive your lease renewal offer with a price tag on rent that’s a few hundred dollars more than what it used to be. In Charlotte, rent has increased by 18% since 2021.
In most cases, tenants who are looking to renew their lease have limited options and must agree to a rent increase.
What some don’t realize is that the offer received in their lease renewal is not the final say. It is possible for you to negotiate with your landlord or property manager.
Matt Stone is a broker and managing partner at Matt Stone Real Estate in Charlotte. With more than 16 years of real estate experience, he manages one of the top-rated real estate teams in the area.
Stone explained that it is the perfect time to renegotiate your rent because right now, tenants have the upper hand.
“Many tenants are playing hardball with their landlord at time of renewal,” Stone told The Charlotte Observer. “The rental market, and real estate sales market, have both softened considerably in the last few weeks, so tenants and home buyers have new leverage to negotiate deals that have not existed for many years.”
According to Zumper, a real estate research company and online marketplace for rentals, the median rent in Charlotte for a two-bedroom apartment has begun to reach a plateau after a dramatic incline.
The median rent for a two-bedroom this time last year was $1,437, the site says. Since then, the median rent for the same kind of apartment has increased to $1,695. In other areas of the city, especially in South Charlotte, the rent is much higher.
On average, two-bedroom apartments in South End are 56% higher than the city median. Similarly, Commonwealth and Wilmore both maintain an average rent that is 60% higher than the city median, according to Zumper.
The data also shows the general “softening” Stone refers to. Although the rent median in Charlotte has continued to rise, it has slowed down rather suddenly in comparison to the rapid climb seen over the past few months.
Thus, you may be able to lower the rent on your lease renewal if your landlord or property manager is willing to work with you.
A report by the Observer in May outlined that tenants could explain to their landlord or property manager that the rent of similar properties in the area has begun to slow down. This can be done by comparing similar properties in the area and knowing how much they are renting for.
North Carolina law does not regulate how much landlords can increase rent, but the amount can only be raised at the end of a lease.
