As if the exorbitant rents across the country weren’t enough, many renters still have to pay extra fees, which are often hidden in the rent amount and not disclosed by landlords.
The real estate buying and renting website Zillow has just launched a tool to help renters understand the true cost of renting. This feature is available on the company’s website and app.
According to Zillow’s Consumer Housing Trends Report, 80% of renters say staying within their initial budget is very important – more than any other factor in choosing a home. However, many renters may not be aware that their budget needs to account for more than just the monthly rent.
Zillow’s new “Cost of Renting Summary” provides renters with a clear view of their rental financial obligations, making it easier to understand all the costs involved, prepare for them, and even avoid them if charged improperly.
“Renters should feel financially confident when renting an apartment, with no surprises included,” said Christopher Roberts, senior vice president and general manager of Zillow Rentals. “Transparency is at the heart of our commitment to renters, and tools like this provide them with comprehensive data to navigate the real estate market and find the perfect home within their budget.”
The new feature was mentioned by the White House this week in an announcement describing President Biden’s efforts to reduce costs for renters. Just like in the airline industry, the current government has been looking into measures to eliminate unnecessary fees related to rental properties.
But unlike travel and tickets, rent is where many Americans spend most of their income: About 35% of Americans live in rental homes. In 2019, nearly a quarter of these families spent at least half of their paychecks on rent.
During the pandemic, rental prices increased by about 26% nationwide. Extra fees make it harder for renters to know what they can actually afford. Those who sign leases and get stuck with rents that have hidden fees may not be able to pay them on time – and will likely have to pay late fees. In other words, the situation can snowball.
The worst part? Many of these fees are outrageous and charged improperly. A renter in Seattle, for example, received a $75 fine after their landlord notified them that they could not have potted plants on their balcony.
So, stay informed. Before signing a rental agreement, read the document and ask about additional fees that may be charged in the future.
Source: Yahoo Finance