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Old 02-01-2007, 10:10 AM
 
4 posts, read 43,367 times
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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
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Old 02-01-2007, 10:39 AM
 
146 posts, read 643,050 times
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Yes they can. I think the cap on increase is 6% per year.
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Old 02-01-2007, 02:08 PM
 
209 posts, read 1,162,422 times
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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.
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Old 02-01-2007, 02:28 PM
 
Location: Hopewell New Jersey
1,376 posts, read 5,116,772 times
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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
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Old 02-01-2007, 02:57 PM
 
562 posts, read 1,845,729 times
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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..
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Old 02-01-2007, 05:26 PM
 
9,125 posts, read 23,748,232 times
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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
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Old 02-01-2007, 06:16 PM
 
Location: Missouri
5,933 posts, read 14,941,926 times
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Our rent goes up 5% - 6% every year. It is managable but high enough to motivate us to buy ASAP.
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Old 02-01-2007, 08:54 PM
 
562 posts, read 1,845,729 times
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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
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Old 02-01-2007, 09:06 PM
 
Location: Sherman Oaks, CA
5,163 posts, read 10,289,568 times
Reputation: 5818
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...)
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Old 02-01-2007, 09:35 PM
 
Location: Hopewell New Jersey
1,376 posts, read 5,116,772 times
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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 .
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