How To Deal With Rising Rent Amid Tough Economic Times
Knight Frank’s recent Kenya Market Update, the price of commercial office rents increased from $1.10 (Sh124. 96) to $1.20 (Sh136. 32) per square foot (sq ft) per month.
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Rent prices for apartments and offices have over the past year been at a market high.
According to Knight Frank’s recent Kenya Market Update, the price of commercial office rents increased from $1.10 (Sh124. 96) to $1.20 (Sh136. 32) per square foot (sq ft) per month. The increase has been attributed to the reopening of the economy since the covid-19 pandemic lockdown.
Furthermore, the report noted: “In addition, the change in working patterns and adverse economic conditions have resulted in several organizations downsizing. Consequently, the sector continues to be a tenant’s market.”
A recent survey stated that nearly 78% of tenants in Kenya have recorded price increases for their apartments.
Along with high home prices affecting the rent prices, there were low vacancies, inflated costs of construction, and just enormous demand, all of which are putting a squeeze on renters.
How then can the tenants navigate the market?
Negotiate
Once you get a notice of an impending rent increase, the first thing you ought to do is negotiate. If you are one who pays their rent on time, you may have more leverage than the rest. Most landlords wouldn’t want to deal with the cost of replacing you. Most of them are dealing with higher housing costs as taxes and utilities are equally going up.
Additionally, many of them went months without being able to collect rent because of the eviction moratorium during the pandemic.
While you negotiate, your landlord is likely to still increase the rent but not as much. If you agree to do something like sign a longer lease, you could have more negotiation leverage.
Know your rights
One way to help yourself in these times is to research and learn about your rights as a renter.
While in some situations a landlord can raise your rent as much as they want, they’re required to provide you with notice. For example, a landlord has to let a tenant know at least two months before a planned change.
While you’re researching, you can look up the median rental prices where you live. You can use that to show your landlord why your rent shouldn’t increase or at least not as much.
Change your living situation
Considering the economic changes, you may have to change your living situation to deal with the exorbitant rent prices right now.
For the singles, they could even get a roommate, or change apartments. You could find that giving up a few features or amenities could help you find a cheaper new place.
However, be mindful of the safety of these neighborhoods, but lower-priced options will always be available. In some cases, this might be middle-class neighborhoods in the suburbs or outskirts of cities.
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