To Renew, or Not to Renew?

So, you're approaching the end of your current lease, and the apartment complex has sent you a renewal notice that will allow you to stay in your apartment. However, you notice that the monthly rent amount you're offered has increased.

You've got a quandary on your hands now: Should you renew and pay the higher rent, or should you look for a new place.

How much higher can the rent increase be?

Generally speaking, the increased rent amount is a few percentage points above your current rate. It primarily reflects the apartment's attempt to keep ahead of inflation, but will also represent a bit more of a profit grab because your renewal demonstrates loyalty to the complex.

So, according to Avail.co, a typical rate increase will be 5% - 15%, but there's no set amount. It is possible that there will be no increase, or an increase less than 5%.

However, if you have been living under a lease that the apartment has deemed significantly under the market - either due to changing demand in the area or the fact that you got a great deal when you first signed up there - you may see more dramatic increases. There's really no cap, and rest assured that the apartment will demand as much rent as it can - it's just the nature of business.

Do the math

At a basic level, you should weigh your two options numerically. There is an additional cost associated with staying (the rent increase), and there is an additional cost associated with moving somewhere else (new fees, moving costs, lost time at work, etc.).

You absolutely should know the bottom line answers for both of these options. Be sure to calculate the rent increase annually, though. So, if your rent increase is $100/month, you're actually going to end up paying an additional $1,200 after a 12-month lease.

Weigh that amount against all the moving costs. Get quotes from moving companies or Uhaul. Find out what other apartment options you have (or let me do it). See what specials are available.

Don't just do the math, though

Is it okay to make a decision purely on the basis of the numbers? Of course it is. In fact, if your income status has shifted since you took the lease, you may have to make the cheaper decision regardless of how you feel otherwise.

However, if you have some flexibility, be sure to consider the location of your anchor. If you're still hanging around the same area, you may want to eat the cost of staying - even if it's higher.

Conversely, if your anchor position has shifted or you were never that close to it in your current location, a move might be worth the hassle. At the end of the day, you're probably going to be happiest if you don't have to travel far to the places you frequent.

There's no wrong answer, even if you choose the more expensive option. The only thing is that you should take the time to figure out what options you have before you renew your lease. There may be something better out there that you don't even know.