According to Census Bureau data, rents have increased by $250 per month for 6.7 million households across America over the last 12 months. As a result of these hikes, 8.4 million Americans are struggling to keep up with payments.
In this blog post, we'll look at some of the reasons why rents are increasing so much and the things property managers can do to ease pressure on their residents and protect themselves.
The Coronavirus pandemic forced The Government into several measures, including a moratorium on evictions and a ban on late fees.
However, those Government-imposed payment freezes have now abated. This means property managers are looking for ways to responsibly include two years of market inflation into their summer lease renewals.
But there's more to these increases than just the impacts of COVID. Some other reasons [why prices have continued to rise](https://www.fidelity.com/learning-center/smart-money/why-is-rent-so-high#:~:text=Rents soared because of simple,April 2020 and July 2021.&text=Then there's the wave of Boomers selling their homes.) are:
There are things you can do as a property owner to ensure your portfolio remains enticing and attainable.
Rising rents mean ballooning security deposits, driving more financial barriers for renters that are expected to persist for the foreseeable future.
First and foremost, you can look at managing the upfront costs of your property. Offering a Security Deposit Replacement option is perfect for enabling renters to lower their move-in costs while ensuring you have the protection you need against potential damages.
You can also consider our Lease Guarantee product, which allows tenants to get approved for the apartment they want while ensuring you are covered against the potentially costly effects of renter default.
Rental prices across the country are rising. While there isn't much you can do to slow or prevent these increases, there are a couple of ways TheGuarantors can help keep your properties full of reliable renters.
Get in contact with our team today to see how we can protect you against the risks of rising rent and tenant default.