How to Tell If Your Rent is Too High

July 19, 2021 | Posted by: Sherry Corbitt

Have you ever wondered why your rent seems so high? There is a possibility that you are paying too much for your rental. Whether you are new to renting or have been renting for a long time, it may be wise to evaluate your payments. There are a few methods to determine if you are paying too much for your rental. 

Neighbourhood Cost

If you are unsure if you are paying too much for rent, a simple tactic is to assess similar rentals in the area. It is very common for rentals in the same neighbourhood to have a similar cost. Of course though, they will never be the exact same, as every rental is different in their own ways. By going onto a rental website, you can access what the average rent is in your local area and neighbourhood. Another way to evaluate the area is by speaking with your neighbours and asking what they pay for their rent. Keep in mind that some may not be open to discuss this question, so make sure to ask those in your neighbourhood that you are closer with. 

Location

The area that your rental is in will be a large estimate of how much your rental will cost. Some features that can make a rental more expensive can include it being in a city, by a main street, close to a variety of stores, or being located by a waterfront. A rental that is typically more low-priced can include being outside of the city, further away from shops, and being in an older area. It is good to keep in mind that there may be some cases in which a rental could be more or less expensive in these locations, yet for the most part you can be fairly certain that it is accurate.

Rental Accomodations

A clear principle to keep in mind is that the more a rental provides, the more expensive it should be. You can expect a rental that offers a variety of furniture, appliances, home accessories and electric devices to be more on the expensive side. Yet if you are paying a lot of money for a rental that does not provide half of these items, then you can be fairly certain that something is inexact.

Rental Condition

It should be true that you get what you pay for. A rental at a higher cost should have no issues with the foundation or building itself. The utilities that it provides should all be working well with no issues. The rental should be fairly modernized with adequate flooring, ceilings, walls, counters, and cabinets. A lower costed rental on the other hand will most likely have older features, have issues with the foundation of the building, and have potential risk hazards with utility pipes or containers. 

Rental Size

The size of a rental is one of the most important aspects which can determine it’s worth. A basic concept to keep in mind is that the larger the rental, the more expensive it will cost. If you are renting a 1 bedroom apartment with 1 bathroom, you can expect that it will not be nearly as high as a full apartment rental or house. 

What Should You Do If You Are Paying Too Much?

After analysing these few points, if you suspect that you are paying more than you should, it would be best to contact the lessor. Go over your concern with them and ask why it is at the price it’s at. If the lessee does not offer sufficient reasoning, it may be best to get a lawyer involved in this situation or find another rental.

Paying too much for a rental can and has been common for many people. Yet if you can understand the aspects of your rental, you can spot a discrepancy much quicker and more easily.

If you have any questions about renting costs and expenses, please reach out to me!

Sherry Corbitt, Mortgage Broker

 

Sources

-Colley, Angela (2014). 4 Quick Questions to Check If Your Rent is Too High. Realtor.com. Retrieved from https://www.realtor.com/advice/rent/4-quick-questions-rent-is-too-high/

-Leshnower, Ron (2019). How to Tell If You're Paying Too Much For Rent. The Spruce.  Retrieved from https://www.thespruce.com/paying-too-much-for-rent-156198

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