Wednesday, March 18, 2009

Advice please!

Scenario:

My roommate and I sit down with our property managers in November to sign our lease. Collectively, rent is $1,000 per month. To my surprise, we are given the option of a 6 month or 12 month lease (we thought it was a 12 month lease and we were prepared to sign a 12 month lease). Naturally, I asked, "Well, besides the term length, what is the difference? Does rent go month to month after that? Will our rate increase?" The Property manager responded with, "You would sign another lease at that point and rent would not increase."

My roommate and I looked at each other and came to the same conclusion: 6 month lease. Why not have less of a commitment for no extra risk (just in case... we figured we'd be here way longer but you never know what might happen)?

We signed the 6 month lease, which goes through May 31st.

Fast forward to March 15th....

We come home to a letter slipped under our door that reads, "The market value of your unit has increased to $1,150 per month, but we'd like to keep you in your unit for $1,100 per month."

Okay, I have many problems with this scenario.

First: We ASKED if rent was going to go up and they said no. We were absolutely willing and ready to sign a 12 month lease but opted for the 6 month due to the "just in case" reason.

Second: There is NO way market value of our unit has increased over 10% (although I do feel special they only want to charge us $100 more rather than $150 more *sarcastic*). And actually my roommate contacted the county and discovered that the value of our apartment complex has actually decreased in market value by more than $200,000 (from 2008 to 2009)!

Third: Part of the lease contract is that we have to provide a 60 day notice of intent to vacate. No problem. But what is super frustrating is that they gave us this letter only 15 days before we have to make the decision on whether or not to leave this unit because as of March 31st, it will be 60 days until the expiration of our lease. They should have given us more notice instead of springing this on us.

Those are the 3 arguements we intend to present to them when we go and fight this increase. Anyone have any other ideas? I/we can't afford to pay more; it's not realistic and in all reality... a mortgage would cost less (if I go buy a house) in this economy.

14 comments:

erin said...

wow. i've never had anything like that happen, and if i did i'd totally let ben deal with it. i don't understand the majority of leases and contracts...

oh i hope you can get this figured out because that's just ridiculous. it funny that it's actually gone down in value though.... maybe you can get a return on your rent! :-)

Anonymous said...

I personally would make an appt to go talk to them about it. First, discuss the info the originally told you about the cost not going up, etc.. My understanding of leases when I used to rent an appt was, once you signed the 'lease' or
contract, they could not raise it until the end of that contract. Which technically they would not be doing (raising until the end of your contract.) but if they verbally told you they would not raise it even at the end of the 6 mos, then you have a valid concern w/ them. Also, I would ask them to clarify how they came to the new amount for rent and how the cost of living has gone up.. Then spring on them the documents you guys found stating the value of the appts went down. It appears they are raising the cost due to the bad economy and the fact they probably are hurting for getting new tenants. All else fails, send a 'CAT' their way! Hehe. Good luck you guys!

Jess(ica) said...

Erin, good idea on the return on rent! lol if only it worked that way, eh?

Midge, great idea on the cat! I will have to have one lined up! Just in case! lol

not2brightGRAM said...

As I see it, you have two choices. Fight it on principle (but unless you have it in writing, it's going to be difficult), or move (some battles aren't worth the effort).

Have you checked out nolo.com? As landlords, we have gotten some great advice, but there seems to be more tenant rights than landlords, so you might really benefit from it.

A day in the Life... said...

Hmm.. That stinks.. I think I would talk to them and tell them your concerns and if they won't change it just move. $1,000 seems like a heck of a lot for rent anyways!

Rebecca said...

Do you want to stay there because you LOVE it? If you're paying that much, it seems like you could find something better for less.

But, you're right. . . that was a nasty bait and switch. I think you should at least try to get justice. Is the same person that told you the rent would stay the same still working there????

Anonymous said...

anything in writing???? If not, good luck..next time get it in writing........

Four peas in a pod said...

I agree with everyone that the verbal promise that rent would not be raised holds little ground, BUT you and your roommate were very smart to look into the value of the property! What the landlord probably meant was that they have fewer rentals these days to cover the same costs they have always had (utilities, mortgage, insurance, etc). However, since that's not what they told you, I would tell them about your research and let them talk their way out of it! I think you may just win this one. Keep us updated!

Moving is such a pain and I will always do anything to avoid it if possible :-)

Anonymous said...

Go with the house if it is cheaper per month! I do agree with Grandma though, get stuff in writing next time.

3dingsandadog said...

Since it may be cheaper to own, have you thought about buying and then renting out a room? Just as thought...

Elizabeth said...

i would also advise that you, after showing them the papers, warn them that you WON'T stay for that amount (even if you very well might) and that they will most likely lose even more money if they lose you. let them know that, with the economy being the way it is, they most likely won't get anyone to pay more than what you do now, and may even end up resorting to cutting someone else a deal just to get SOMEONE in there, as a lot of apartments are doing now.

Elizabeth said...

*the papers about the property decrease in value*

Alicia said...

That is crazy, but sadly typical. I think you have done a great job of thinking the situation through and also of doing your research. An additional angle might be to ask them to allow you remain in the apt for the original $1000 for the additional 6 month (as if you signed the 12 month lease to begin with) since the manager verbally confirmed that there would not be an increase. It comes down to the fact that you made a decision based on incorrect information and should not be held responsible for that.

Anonymous said...

I agree with Alicia, if you ask "nicely" they might agree to it. If not ,then I agree with Elizabeth!