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Good morning,
My question is for property owners / tenants. The complex that I live in just increased it rents by 10% for the last two years. Which resulted in 146.00 per month ($292.00 in two years). I find this to be excessive. The complex has over 300 apartments. Based on an 80% occupancy for a one-bedroom apartment that is approximately $455,000.00 annually for the property owner.
I understand the need for increase, but I have lived here for over 12 years and the increase has been 4%.
What has happened that caused such a drastic increase? I have written the mayor of the town and the councilmembers asking if some type of rent control can be instituted that would be beneficially for the property owners and tenants, but to no avail.
I am a senior citizen who do not make a six-figure salary and is finding this a struggle to pay.
To the property owners please tell me what your thoughts are and is there some type of compromise that you find acceptable without putting too much of a burden on tenants.
While I emphasize with your situation, why do you think any type of rent control would be at all beneficial to property owners? The market usually dictates rent prices. I’m a landlord and I have some tenants that I charge slightly below market because they pay on time and don’t give me headaches. I don’t want them to leave even if it means earning less than I would from another tenant. The best thing you can do as a tenant is pay on time and not complain about minor things. Unfortunately, even then, all that will matter to some landlords is who’s willing to pay more $$$
Inflation is way up, this is why your social security check is up ~9% from last year. The biggest expense increase for them is probably their property insurance followed by their salaries. Insurance will go up 25%-50% in the next year for most people (partially because of the limitations put on the insurance companies and partly because of this higher payouts for claims). People want 10%+ increase in salaries. But Everything is costing more, and honestly your apartment complex is a corporation set up to make money by people that invested their own money. Why not charge the market rate, if not you are just giving your money to others for no reason? People complain about this, but I do not see any of them investing their own money to buy buildings to rent at lower rates.
costs of goods and services will not decline. Here's some info on nationwide rent increases for you to compare to your own situation. Depending on location 10% a year doesn't appear out of line.
While I emphasize with your situation, why do you think any type of rent control would be at all beneficial to property owners? The market usually dictates rent prices. I’m a landlord and I have some tenants that I charge slightly below market because they pay on time and don’t give me headaches. I don’t want them to leave even if it means earning less than I would from another tenant. The best thing you can do as a tenant is pay on time and not complain about minor things. Unfortunately, even then, all that will matter to some landlords is who’s willing to pay more $$$
I understand the need to increase, and I understand that as property owners they want to make a return on their investment. But what is stopping a property owner from increasing the rent to 30%, 40% or 50%. I appreciate your reasoning and how you apply your situation to your tenants.
I have lived here for over 12 years, and I have never been one day late on my rent because when I signed the lease, I entered into a contract, and I am only doing what is required of me.
Perhaps, some might say if you don't like the increase and how the landlord chose to manage their property than move. Yes, one can move but what is stopping the next landlord from increasing their rent to 40% if there is no control on how much a landlord can increase. That is why I said beneficial to all.
If insurance companies and the state rising property taxes are going up at an excessive rate that the landlord is struggling to pay, I am willing to stand and fight with them. I will write the senators, the governor, go on social media etc. to bring light to the situation.
That is why I asked for the feedback of property owners as well as tenants. I was hoping that we can see what each other challenges were and find a way to find common grounds to the problems.
In the end a good tenant wants to live somewhere safe clean and affordable. I believe a landlord wants tenants who pays their rent on time every month, do not destroy their property.
I understand the need to increase, and I understand that as property owners they want to make a return on their investment. But what is stopping a property owner from increasing the rent to 30%, 40% or 50%.
Absolutely nothing. If people were willing to pay 30-50% increase in rents, landlords would gladly charge it. Do you have the same philosophy at work when it comes time to your raise? If your company were to offer you a 20% increase, would you decline it because it would cause the prices of goods/services your company sells to be too high for their customers?
Clearly, there are tax and various other laws, and it depends on how many of them are beneficial to the property owner, and how many of them are beneficial to the tenant. Even though I disagree with the statement "you did not build it yourself", there is some truth to it. Sometimes I guess tenants stop paying rents, and then everyone else picks up the tab. I have also heard that tax laws favor property owners in that, there are tax breaks if the property owner keeps property vacant until they get their desired rent. There are various tax rules such as the 1031 exchange rule that are in favor of property owners.
The answer is not to say "then why dont you become a landlord". That is not that different from saying, why dont you become a state congressman if you dont like an existing law.
Usually free market is good, but in the case of an existing tenants, the inertia or inability to move is a greed factor property owners can prey on. That is something that should be addressed. Simply saying, move if you need to, is not the full picture.
Clearly, there are tax and various other laws, and it depends on how many of them are beneficial to the property owner, and how many of them are beneficial to the tenant. Even though I disagree with the statement "you did not build it yourself", there is some truth to it. Sometimes I guess tenants stop paying rents, and then everyone else picks up the tab. I have also heard that tax laws favor property owners in that, there are tax breaks if the property owner keeps property vacant until they get their desired rent. There are various tax rules such as the 1031 exchange rule that are in favor of property owners.
The answer is not to say "then why dont you become a landlord". That is not that different from saying, why dont you become a state congressman if you dont like an existing law.
Usually free market is good, but in the case of an existing tenants, the inertia or inability to move is a greed factor property owners can prey on. That is something that should be addressed. Simply saying, move if you need to, is not the full picture.
Who here is saying any of the things you’re arguing against?
Who here is saying any of the things you’re arguing against?
My point was that property owners and landlords get preferential treatment in the tax code. What is wrong with OP asking for a little preferential treatment through rent control?
I was a landlord for over 10 years (accidental landlord post 2008) and did not relish it very much. I realize the amount of work that is involved. But I feel it is not always a level playing field. When a tenant abuses a property or stops paying rent, it is not a level field. When a landlord raises rents too much on existing tenants, they are taking advantage of the inertia involved in moving. In the case of large apartment buildings, it is even possible that new rents are a bit less than what existing tenants are asked to pay.
Absolutely nothing. If people were willing to pay 30-50% increase in rents, landlords would gladly charge it. Do you have the same philosophy at work when it comes time to your raise? If your company were to offer you a 20% increase, would you decline it because it would cause the prices of goods/services your company sells to be too high for their customers?
I don't think people are willing to pay they are forced to pay; you have no other choice. Yes, we can move and again face the same situation when the next landlord increase they rent to 50%.
As for decline a 20% increase in my salary, please tell me where I can find that job
If what the company sells was not a necessity for living, then the customers can make a choice on if they want to pay for the item or not. For example, if Starbucks raise the price of the coffee and I feel I can no longer afford it, it's no big deal. I can live without it. I may not like it, but it would not have a drastic impact on my well-being or quality of life.
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