Unbelievable Rent Increase
Posted on January 25, 2008 by Him and tagged chicago, housing
When Her and I first most to Chicago, it took us a little while to find an apartment that would accommodate us and not have any weird holes in strange locations. We didn't enlist the services of any of the apartment finding services here, but instead we took a multi-pronged approach of checking out Craigslist and the Chicago Reader.
After seeing many apartments that were too small for the rent asked, had too many holes in weird places (seriously, this was a weird theme in our hunt), or were not in a location near to public transportation, we finally saw one we liked. Thus, a little over three years ago, we signed a 3-year lease for a 3 bedroom apartment in a great Chicago neighborhood a few miles north of downtown. Not only that, but we somehow found a place for only $900/month, with a 5% increase each year thereafter. Sure there was no dishwasher; we're fully capable of doing dishes ourselves. It didn't have a washer/dryer in the unit, or even in the building, but that wasn't a problem since there is a laundromat a steps away from our apartment.
In the time in which we've been in our apartment, we've seen many buildings get torn down, and others rise up to take their place. To our delight a brunch place and a coffee shop opened up two years ago, just steps away from our apartment. A CVS opened up shortly after we moved just a block and a half away. All of this has resulted in more foot traffic on our block, meaning safer commutes and more of a community feel.
Alas, this March our lease to rent our current apartment was set to expire. Because of the 5% rent increases over the last few years, our rent has increases but has managed to stay a hair under $1,000.
As Her and I have a wedding this year and much uncertainly of where we even want to be in a few years, we mulled over the decision to ask our landlord to extend our lease. We didn't have much time to mull it over when we came up to speak with us about that very topic.
He offered us this proposal: An even $1,000 per month, for the next two years. No increase...and if we wanted to stay longer, he wouldn't increase the rent.
Our landlord was proposing to raise our rent by less than $8 per month for the next two years. With an option to renew at that rate.
Unbelievable. The fact that he was going to offer it to us for so cheap was unbelievable.
Needless to say, we have a place to live for the next two years.
Comments/Trackbacks
Trackback URL: http://www.makelovenotdebt.com/MT/mlnd-trackbacks.cgi/1221
Patrick | Jan 25, 2008
Wow, great deal! You landlord must like you as tenants.
I don't understand your contract though, you said you signed a 3 year contract at $900 a month. Why did it increase at ALL during the contract time? You made it sound that the 5% increase applied after the 3 years was up.
Very nice! Congrats! Apartment hunting can be a real bear, so having a good place and a good landlord is terrific.
Becca | Jan 25, 2008
Since you mentioned that you have a CVS right near by, I wondered if you've had any luck doing all the great free stuff deals. (Descriptions at http://www.moneysavingmom.com/2007/09/cvs-101.html)
ben | Jan 26, 2008
I love tenants like you - you can afford to own your own property and build equity, but you choose to pay down someone else's mortgage.
Your landlord, and his grandkids thank you!
Wow, that's amazing. Rent that cheap for a three-bedroom is UNHEARD of in these parts.
We pay $1550.00 a month for our 1-bedroom.
I am considering doing the same for my tenants. They are great and have never been late over the past 2 years. I did not increase the rent last year and I am considering not increasing it for the next 2 years if they decide to sign a 2 yr lease instead of a 1 year lease.
I certainly think you got a good deal for renting, but a big part of becoming financially independent is owning your place of residence, or at least building equity in it. You've done a great job reducing your debt, but I wonder at what point will you look into purchasing a home? Every year you delay that purchase you're losing money to rent, failing to build equity (which *should* increase in value over time, at least enough so to match inflation) and losing out on some nice tax credits.
Jennifer | Jan 27, 2008
It seems to me that Him and Her did a pretty great job of laying out their reasons for waiting to buy a house in a post last June. Cheers to them for knowing where they're at in life and wanting to make a responsible decision about the right time for them to purchase a home.
Wow, that's really great. I'm thinking though that your landlord is probably getting a pretty good deal too. This way he keeps trustworthy tenants and doesn't have to worry about fighting to collect the rent or have the place empty while he looks for new tenants. It looks like one of those rare situations where everyone wins!
It does seem like a win-win. Rental prices will probably go down in the next few months/years because of housing prices (there is usually a lag), so your landlord gets to guarantee higher rents, but you also get to stay in a place that you love without having to shop around or move for a better deal (especially when the drop might not come until late in the two years). Good job!
Also: I've never seen a 2-year lease in CA. Is that common elsewhere?
laura | Jan 25, 2008
sounds like a great deal! as fellow northsider, I know how hard it can be just to find a two bedroom for that price, let alone a three!
Reply to this comment