What's with all of the high "Application Fees" to rent an apartment?

[TexasTony]

For a small time landlord with few properties, it doesn't make financial sense to have a 24/7 maintenance person. Even if they subcontract those services or sign up with a service management company, the cost is going to be too high. That's why its actually a good thing if the tenant extends their lease rather then move out. For large corporations and multi unit apartment complexes, they have a whole team of 24/7 maintenance men on their payroll. All materials and are bought at whole sale prices and they don't pay retail labor rates like a regular landlord would pay. Hence for them, charging a market rate deduction from tenant from their deposit or at the time of move out is a positive income stream. It makes sense that they keep turn around high because that's additional income.

[gwarnecke]

Also - the marginal cost of advertising a single apartment in a large complex leased is very small...effectively, it's a tiny portion of the entire complex's advertising budget.

For individual landlords, you lose 1/2 to 1 month's rent to the listing agent, and the tenant's agent, each time you find a new tenant. This serves as a much stronger disincentive to bumping the rent up every year and accepting higher tenant turnover.

[shytiger]

All costs are past to the renter...overall maintenance, building operations, repairs, property taxes, management and etc.. The multi-family real-estate investment business is there to generate a positive cash-flow off of YOU. Your rates have probably gone up recently due to the increase property taxes (especially if you're in HISD). You'll most likely see further increases now that the city pension funds are in danger of not being properly funded. Yep, you involuntary will be a victim of that trickle down screw-job. All these wonderful things happen when your city turns blue. Keep voting Democratic and see what happens.

[AlfredB1979]

Originally Posted by timtemtym

I am amazed at how quickly the rental prices have skyrocketed since I left Houston five years ago! I was paying $750 for a one bedroom near Sugar Land that is now asking just over $1k. I always like to check-in to see what I'd be paying if I stayed in Houston. Everywhere I lived (I liked to move every 12 months) has gone up by $300-$500. That is crazy since my salary there would only have gone up about $2k.

So true. I paid $425 for a 2/1 back in 2011 and got that rate until ownership changed in 2012 or '13. Now, like three owners since I moved in 2015, that's easily $700 per. A coworker of mine lives there and tells me it's not worth it still. The efficiency I'm fixing to move into is $575 per. At least I won't have an extra room to load up with auction winnings.

Originally Posted by oceangaia

My experience is the opposite. Apartments will offer new tenants special deals like a free month's rent but diddly squat to renewals.

Really. Never seen anything but. My rent for the 2/1 was $600 when I left. No pets, no smoking, all they had to do was vacuum and jam more staples in the carpet to replaced what my socks gobbled up. Left it in real nice shape.

Originally Posted by shytiger

All costs are past to the renter...overall maintenance, building operations, repairs, property taxes, management and etc.. The multi-family real-estate investment business is there to generate a positive cash-flow off of YOU. Your rates have probably gone up recently due to the increase property taxes (especially if you're in HISD). You'll most likely see further increases now that the city pension funds are in danger of not being properly funded. Yep, you involuntary will be a victim of that trickle down screw-job. All these wonderful things happen when your city turns blue. Keep voting Democratic and see what happens.

Moving towards refinery row out of city limits. Thank (insert deity of choice here) for that.