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Pick an expense, real estate tax increases, energy increases when they happen, a biggie is insurance, and every other expense that rises. in fact the same way an employee wants a cost of living increase a landlord wants one. we all have to eat and pay our personal bills too.
rises in interest rates too since commercial property has different loan terms than residential.
rises in the cost of living require raises to the landlord to eat and pay their bills. this is a livelihood the same as you or anyone else works to eat .
we all want the maximum income the markets will provide for whatever each of us does for a living.
should you not get a raise at work that is more than your expenses may have gone up? of course you should.
can you imagine your employer giving you a raise based on whether your expenses went up or down? you would quit. you want your raise regardless and you want what the market will allow .
Last edited by mathjak107; 09-12-2013 at 02:08 PM..
I am actually curious to this. Why do landlords raise the rent on a tenant after the 1st year? Ours raised $100. We pay on time, aren't trashing the house and they know that because they did an inspection. And we pay ALL utilities, including garbage so they can't say that cost of utilities went up.
Insurance would be the only thing I could think of.
have your bills gone up ? how about medical insurance costs? food costs? this is a landlords livelihood to live on the same as anyone else who works for a living.
as the cost of living goes up so do rents when they can.
No different than anyone else who owns their own business tries to do.
but you can only raise rents to what markets will allow,. go higher than the markets and there is a good chance you will lose money being vacant....
everything has a price where it is no longer competitive.
Last edited by mathjak107; 09-12-2013 at 02:16 PM..
I fail to understand why anyone would think their rent would not go up, private landlord or not. Over the last three years the inflation rate has varied from 1.6 to 3.6 percent, but it almost always goes up. there was a period in 1998 when it went down for a while, but that was the first time since 1950 that happened. Every landlord experiences cost increases, why would you think the landlord should just absorb those? Property taxes go up, insurance goes up, things wear out and have to be replaced such as roofs and HVAC systems, which are very expensive. I am a private landlord and I raise the rent I charge almost every year. I have skipped a few years when insurance and taxes did not increase but most years I have to raise the rent.
I am actually curious to this. Why do landlords raise the rent on a tenant after the 1st year? Ours raised $100. We pay on time, aren't trashing the house and they know that because they did an inspection. And we pay ALL utilities, including garbage so they can't say that cost of utilities went up.
Insurance would be the only thing I could think of.
Do you pay the property tax on the place? Or any HOA dues? There are other expenses connected to a house or apartment that don't include things for your own comfort and living (water, electricity, cable, etc...)
If those expenses have gone up...that means the LL takes an income cut if your rent does not go up.
I am actually curious to this. Why do landlords raise the rent on a tenant after the 1st year? Ours raised $100. We pay on time, aren't trashing the house and they know that because they did an inspection. And we pay ALL utilities, including garbage so they can't say that cost of utilities went up.
Insurance would be the only thing I could think of.
You pay all the utilities, because thats what you use.. and that's what you should pay for.
I guarantee you that you don't pay property-taxes, or maintenance on the property, or the myriad of fees and expenses that the government just issues at will. Your fridge broke and your landlord bought you a new one? What about that nice HVAC unic that cost $4.5k to buy and install? You know a plumber won't even show up to check a problem out without at least charging you $150 for the visit.. plus an hourly fee and materials. That lawn won't cut itself either. And so on.. and so on.. and so on..
You partly paid for all of this, with your rent and rent increases.
Personally, if I have a great tenant, I'll do my best to not raise rent at all. An extra $50 a month won't matter too much to my bottom line, at least not as much as a great, happy tenant would. However, and as long as the local market allows, I will always raise rent in between tenants.
exactly, we all want to get the biggest bang for our invested buck or if we work for someone we want the biggest bang for our invested time.
no one is here to provide charity when it comes to what you do for a living..
there is some insane logic folks try to have that the rent has to be linked to only the expenses of the property . so if i pay off my mortgage i should only charge 1/2 the rent ?
that is just as insane as someone linking your pay check to your expenses instead of your performance.
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