Rental Rates Rise as Real Estate Market Turns Corner (apartment, renters)

[LynnHarris]

It looks like rental rates are going up in parts of the metro area. Some renters will probably just pay the increase, while others may start thinking about becoming homeowners instead.


"Monique McKenzie didn’t like it when the landlord raised the rent $100 a month on her one-bedroom Midtown apartment.

“It was really a pretty substantial jump,” McKenzie, 28, said. And when she looked around the neighborhood, she discovered that all the rents seemed to be rising..."

Rents rising as real estate market turns corner | www.ajc.com

[researchnerd]

This is not news. The rental market's been hopping since the recession started.

[Somoso]

3 years ago at lease renewal time my landlord sent me a notice of increase that was insane. I had been there for 4 years and never bothered the guy, did upkeep, helped the neighbors, etc. But he, like other landlords at the time (and now), saw the dollar signs. He was real arrogant too - telling me he had a waiting list for the property that people would gladly pay what he was asking without question. I was thinking about buying a home anyway so I got a great deal and moved out. I got the last laugh though when he called me about six months later wanting to know if I was interested in moving back in at the old rate as his new tenants were partying all the time and wrecking the place. The nerve.... Greed man - it brings everybody down.

[ATLTJL]

Outrageous rent increases were one of the big factors that drove me to purchase a home in 2009. My mortgage was slightly more than my rent (including escrow), but I still felt that it made it easier for me to budget because it gave me a long term view of what I would be paying every month instead of wondering how much it was going to go up every year.

Of course, that's all countered with the additional expenses you have to pay to keep a home up, but most work can be priced out and delayed a few months if necessary. I still find budgeting easier as an owner than it was as a renter.

[LynnHarris]

Originally Posted by Somoso

3 years ago at lease renewal time my landlord sent me a notice of increase that was insane. I had been there for 4 years and never bothered the guy, did upkeep, helped the neighbors, etc. But he, like other landlords at the time (and now), saw the dollar signs. He was real arrogant too - telling me he had a waiting list for the property that people would gladly pay what he was asking without question. I was thinking about buying a home anyway so I got a great deal and moved out. I got the last laugh though when he called me about six months later wanting to know if I was interested in moving back in at the old rate as his new tenants were partying all the time and wrecking the place. The nerve.... Greed man - it brings everybody down.

Good for you!

[DONNIEANDDONNA417]

Originally Posted by LynnHarris

Good for you!

that what he get for being so greedy. I know when I was renting my landlord told me it wasnt about the money..she just wanted someone to take good care of the property. Its like shopping for good renters.

[FromGA]

And every time tenants change, the owner might have to pay agent fee for finding new tenant. And spend a little more than usual on painting, etc. AND you never know what kind of tenant you are going to get.

Better to stay with same (good) tenant even if 10% or so less.

[Somoso]

Originally Posted by LynnHarris

Good for you!

Well in reality it all worked out in that moving was probably a good thing for me. I got a great house at a great price. Still the circumstances weren't so nice. The landlord, who was otherwise a nice guy, was overcome with greed. I don't doubt that he had people lined up who would pay much more than I had been paying though, as the landlord soon learned, not all tenants are equal.

I suspect that any money he made by charging the higher rent was soon consumed by repairs to the house caused by careless tenants in addition to the costs of eviction as well as the lost rent due to the vacancy while he had the house repaired. Of course he eventually realized all of this, which is why he called me to see if I wanted back in. I just told him I had found a place and that perhaps he should consider that people who pay rent on time, take care of the property, and are good neighbors are worth keeping. He did apologize.

At one point last year I was traveling extensively for work and had considered renting out my house but have seen and heard so many horror stories about tenant problems that I think I'll pass. All it takes is one nightmare tenant to cost lots of money. If you don't have a financial cushion to absorb these problems then its hard to make it in the long run while you wait to find responsible tenants.