Rent Increase Calculator

Rent Increase Calculator is used to estimate the cost of renting a house or an apartment. The rent increase calculator use the current rent, percentage increase per year, and the number of years to predict how much the rent will be in the future.

What is a rent increase?

A rent increase is when a landlord increases the price of rent and the tenant has to pay more each month to cover the cost of rent. A rent increase can happen during lease renewal or throughout the term of the lease term depending on the lease agreement. There are many reasons for rent increases, here are the two main reasons, inflation and demand.

• Inflation - The rise in the cost of living will lead to high prices for house maintenance, property taxes, and utilities. To cover the costs, landlords must increase the rent.
• Demand - When the demand for housing increases, there will be more tenants fighting for the same number of housing which will cause a rent increase. For example, if more people are moving into a city or the population growth is high in that particular city, the rent will increase faster.

There are local state laws that prevent landlords from hiking rent prices for a certain percentage, it is important to read the lease terms and understand local laws before signing your lease.

How to prepare for a rent increase?

As tenants, we must set aside some money and be prepared for rent increase. There are two main ways that you can do that.

• Save more money - You can try to save more money for emergencies from your paychecks.
  
  Instead of saving whatever is left after spending from your paycheck each month, a better way to save money is to put 5% to 10% of your take-home paycheck before you start doing anything with the money.
  
  This forces you to cut your spending manage your money wisely and be prepared for rent increases or other emergencies.
  
  
• Make more money - If there is no way you can cut down your spending, you need to find a way to increase your earnings. You can either get a part-time job or find a side gig online to make extra money.
  
  There are many ways that you can make money online with your knowledge. You can find work from many of the freelancing or side gig platforms on the internet.

How to use the rent increase calculator?

The rent increase calculator has three inputs, current rent, annual increase percentage, and number of years. With the above three inputs, the rent increase calculator will calculate your rent for the coming years through the rent terms.