My rent increases due to "Fair Market Value" by about $50 each year. Anyone know why?

Question

I could understand if any improvements had been made, or if the property value in the area was increasing in general. Neither of these are the case though. We live outside of Detroit, the economy is horrible and the unemployment rate is the highest in the country at 8.6%. I just have a hard time believing that my apartment is worth $50 more per month. Does anyone know of a way that I can get confirmation of the actual Fair Market Value of my rental?

Thanks :)

Answer 1

Where in Detroit are you?  I am in a suburb as well and ours goes up $40-$50 a year as well.  It is normal.  Keep in mind that property taxes go up, insurance goes up, water goes up, garbage pickup goes up, electricity costs of common areas go up, etc.  Prices increase all over.  

This is totally normal, btw.  I have been renting for 20 years now and every place I have lived (Rochester, Waterford, Pontiac, Clarkston) my rent has always gone up each year on my lease renewal date and it has always been $40-$50 a month.

Answer 2

see what comparable rentals are in your area. if you are paying the same amount, then it's fair. your area doesn't have to appear that it is improving, sometimes the values just go up because of the location, not because improvements are being done. if your landlord is paying higher taxes because of an increase, he's going to pass it on to you.

Answer 3

Property taxes go up and the adjust the rent so YOU pay the difference.

Answer 4

GREED....

call competing apartments to see the price....OOO

Answer 5

You need to move because the landlord is taking advantage of you. I live in Plymouth (just outside Detroit) and two years ago our rent went DOWN due to fair market value! It has remained down. I am not sure how to check it but I do know that once you sign those papers, you are agreeing to pay it weather it is fair or not.

Even if you find out that the fair market value has not gone up in your area, there really isn't anything you can do. Once your lease is up, you are free to move and they are free to increase the rent for whatever reason they like. I think they are just giving you that song and dance to keep you placated so you don't stir up the masses about the price increase.

What's your rent? Ours is $800 a month for a two bedroom with a dog.

Answer 6

First of all, he doesn't have to have a reason to raise the rent. Unless you live in a rent controlled area, if you are on a month-to-month lease, all he has to give you is a 30-day notice and he can even double the rent if he wants to.   He can do the same thing if you are coming up for a yearly renewal.

Taxes, go up every year, not down....that has to be factored into rent.

Operating costs, go up every year instead of down...that has to be factored into rent.

Utilities that he pays for the common areas, and maybe water in the building, goes up every year and has to be factored in.

He also has a right to be profitable...if every rental around is increasing in rent, then why does he have to stay the same?  He doesn't...and the rent can go as high as he can keep things rented.

You also, can decline to sign a new lease and cut a better deal elsewhere.