Updated: 6 days ago
Renting a property has always come with its fair share of financial responsibilities, but in recent times, tenants across the globe have been facing a challenging trend - increased rental fees. In this blog, we'll explore the factors contributing to increased rental fees and show how there are so many varying factors that cause this.
Way back in 2015, this client was only paying $700 but now it costs him $1468 more. He couldn't believe when he found out that he's almost paying doubled for a rental fee, hoping it's not real. But the facts remained the same. The rental fee was going up by a substantial amount. It felt like a blow to the gut. He had a fixed monthly budget, and this increase would throw everything off balance. He loved his apartment and his neighborhood, but the increase in rent was a heavy burden on his finances. He spent many sleepless nights pondering his options and he's now considering buying his own home as rent is going up more, but the thought of leaving weighed on him because he lives for more than 15 years in this apartment and he calls it a home.
Here are some of the reasons why rental fees increases:
Supply and Demand
One of the primary drivers behind rising rental fees is the basic economic principle of supply and demand. As urban populations grow, the demand for rental properties in desirable locations increases. Limited housing supply can lead to landlords capitalizing on high demand by raising rental fees. This is particularly evident in major cities and sought-after neighborhoods where rental properties are in high demand.
Inflation is a persistent economic force that affects every aspect of our lives, including the cost of living. When inflation occurs, the purchasing power of money decreases over time. As a result, landlords often adjust rental fees to keep pace with rising costs. This is especially true for landlords who want to maintain the property's value or cover increasing operational expenses.
Property Maintenance and Upgrades
Another factor contributing to increased rental fees is the need for property maintenance and upgrades. Over time, properties can deteriorate, requiring repairs and renovations. These costs are often passed on to tenants in the form of higher rent. Landlords may also invest in upgrades to make their properties more attractive to renters, such as adding modern amenities or improving energy efficiency.
Taxes and Regulations
Local taxes and changing regulations can also influence rental fees. Property taxes, for instance, can rise, causing landlords to adjust rental rates to compensate for the increased financial burden. Additionally, changing rent control laws or tenant protection regulations may affect how landlords can set rental prices.
The Impact of COVID-19
The COVID-19 pandemic had a profound impact on the rental market. In some cases, landlords faced financial challenges due to delayed or reduced rent payments from tenants affected by the pandemic. To recover lost income and maintain their properties, many landlords chose to increase rental fees once the economic situation stabilized.
Now, CKEXPERTS goal is to help this client reach his dream which is to purchase his own home by helping and guiding him on purchasing his home. CKEXPERTS also provided him the smart-timer book where he can manage his finances and bills on time.
This client's story is a reminder that life can throw unexpected challenges along the way, such as an increase in rental fees. While it may initially seem like a burden, with determination and a willingness to adapt, individuals can find ways to manage their finances and even discover opportunities for personal growth and financial improvement along the way.
These are stories we hear daily and we would definitely like to help this client get into a better living situation.