U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New Jersey
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 02-01-2007, 10:10 AM
 
4 posts, read 56,263 times
Reputation: 33

Advertisements

Can rental apparment management increase the rent by 5% every year? I have received the rent increase notice second time in consecutive two years.
Can anybody share some views on this?

Thank you.
Please
Quick reply to this message

 
Old 02-01-2007, 10:39 AM
 
146 posts, read 766,587 times
Reputation: 112
Yes they can. I think the cap on increase is 6% per year.
Quick reply to this message
 
Old 02-01-2007, 02:08 PM
 
209 posts, read 1,422,842 times
Reputation: 103
If your building is not rent-controlled (which is often the case for very small buildings or for new buildings), the landlord can raise the rent as much as they want as long as the increase isn't "unconscionable". Of course, unconscionable is whatever a judge decides, as you would have to go to court to fight a rent increase and judges will look at a number of things in determining whether the increase was ok.

A 5% increase is to be expected pretty much every year, and with home prices having increased as much as they have (and the rental market tightening), higher increase for several years are not out of the question.
Quick reply to this message
 
Old 02-01-2007, 02:28 PM
 
Location: Hopewell New Jersey
1,389 posts, read 6,287,891 times
Reputation: 974
This is a no brainer. The landlord is a bussiness man...not a charity. If property taxes go up by 5 to 7 % per year of course the rent is going to follow.

Call Corzine and complain...and be sure and let us know how you make out
Quick reply to this message
 
Old 02-01-2007, 02:57 PM
 
562 posts, read 2,193,340 times
Reputation: 138
Default renting in buildings..

that's a downside of living in a building.. when you rent in a 2/3 family house.. most of the time the owner does not base rent increase on what's allowed.. and if you are always ontime with the rent and don't cause issues or expeses.. the owner will not increase rent dramatically or at all.. I have not raised the rents on my properties for the last 2 years.. I prefer to have good tenants instead of making an extra 30-50 bucks..
Quick reply to this message
 
Old 02-01-2007, 05:26 PM
 
9,124 posts, read 29,282,837 times
Reputation: 3482
Quote:
Originally Posted by jstar41 View Post
I have not raised the rents on my properties for the last 2 years.. I prefer to have good tenants instead of making an extra 30-50 bucks..
So your taxes have gone up (as everyone's have in NJ), and you choose to absorb that increase rather than passing it along to your tenants? Interesting business model, as unless I'm missing something, you're losing money every year.......

Bob
Quick reply to this message
 
Old 02-01-2007, 06:16 PM
 
Location: Missouri
6,042 posts, read 18,996,415 times
Reputation: 4902
Our rent goes up 5% - 6% every year. It is managable but high enough to motivate us to buy ASAP.
Quick reply to this message
 
Old 02-01-2007, 08:54 PM
 
562 posts, read 2,193,340 times
Reputation: 138
yes taxes go up.. but I'm not broke and still have a positive cash flow.. besides I prefer tenants that are on time and I'm already comfortable with than tenants that I have to get to know and take the risk of missing rents.. if someone misses 1 rent that's approx 1500. if I loose 30 bucks a month * 12 is 360 dollars more.. I'm still gaining.. that's the problem with many people, they get greedy.. yes I will raise rents eventually.. but prob 50. this year.. people like this idea better.. also i try to have 2 yr leases.. I know that for 24 months the rent will be there.. and they know the rent won't go up in 2 years.. i think this is a better business model.. there are tons of apartments everywhere.. landlords must be conscious with the tenants.. I guess that's why my tenants are content and stay for long periods of time..

Quote:
Originally Posted by BobKovacs View Post
So your taxes have gone up (as everyone's have in NJ), and you choose to absorb that increase rather than passing it along to your tenants? Interesting business model, as unless I'm missing something, you're losing money every year.......

Bob
Quick reply to this message
 
Old 02-01-2007, 09:06 PM
 
Location: Sherman Oaks, CA
5,775 posts, read 13,257,628 times
Reputation: 7061
Can I rent from you, Jstar? I only wish my landlord were as reasonable and forward thinking as you seem to be!

For years here in L.A., rents increased only 3% per year. This year the increase is 4%, and next year it's 5%. The quality of my building is going downhill, and I'm paying more. What's wrong with this picture?

(By the way, this is the first time I've ever posted on the NJ board. Hi, everyone...)
Quick reply to this message
 
Old 02-01-2007, 09:35 PM
 
Location: Hopewell New Jersey
1,389 posts, read 6,287,891 times
Reputation: 974
JSTAR41.... your business sense reminds me of the very early days of the automobile industry...before General motors etc,....when all the manufactures were small seperate companies. Henry Ford got tired of workers jumping ship and going to another manufacture everytime they'd offer an additionial 1 cent per hr increase. He'd have to hire new people,train them just to see them jump ship 6 months later. It was hurting the company in many ways. His solution was to offer 5 cents more per hour than the current union jobs at other manufactures were offering. That put an end to the job jumping antics and the net result was actually higher production rates, less down time, and better product quality. It's commonly reported that it was Henries 1st attempt to break up the unions..not so...shallow thinking...it really was as you say.. a business stabilization technique, only you're offering slight discounts...but the same underlying principal. And as you say the 30 to 40 bucks per month ,even over a year is really chump change compared to building damage, empty apartments etc etc .
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $99,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New Jersey
Similar Threads

All times are GMT -6.

2005-2016, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top