tenants are funny when it's time to increase the rent. (rentals, house)
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No one likes paying more. So we can't be surprised when some tenants communicate it.
That said, some of these same tenants are complaining because their $600 payment for the vehicle they couldn't afford to begin with will now hurt even more. They want to play the victim when the big evil rich landlord jacks up their rent yet again. Well, their very inaccurate expectations aren't your problem. Neither are all the bad personal finance decisions they've made that are the real problem the slight increase in rent hurts them so badly. They choose to live paycheck to paycheck and max out every financing option given to them, get by on a razor's edge at best and only when things go perfectly, then you want a more than reasonable increase and they can blame their financial issues on you. Half the time I think it's just a game, they are going through the motions of trying to haggle or play the sympathy card just to see if it will work, it's worth a shot to them. The sad part is some landlords fall for it.
Don't sweat it. If this bum can't pay the increased rent, you'll find someone that can. Odds are he won't really have any issues at all.
So, you basically say it's human nature to not want to pay more for something and even to grouse about it if you're asked to.
But then you go on to say the guy is a "bum." So, putting two and two together, being human makes one a bum?
So, you basically say it's human nature to not want to pay more for something and even to grouse about it if you're asked to.
But then you go on to say the guy is a "bum." So, putting two and two together, being human makes one a bum?
Obviously, that's not even close to what I'm saying.
We can't be surprised when people complain about increases, so it shouldn't change anything when it happens.
Also, to the landlords who feel bad for their tenants more than they should, it's not the landlord's fault that the tenants who have real financial problems are in that situation and the landlord shouldn't waive the increase. Also, for the landlords who feel bad, half of the people complaining aren't nearly as bad off as they try to make it look, they're just hoping to get out if it if they can get the landlord to feel bad for them.
It is appropriate to raise the rent to just below market rate. Rate of inflation, increases in property taxes and the utility you might pay, such as water, they don't make any difference. Watch the market in your area. It's going to cost you if the apartment turns over (possibly vacant for a month, need to paint, clean carpets, make minor reconditioning repairs). So it's reasonable to raise it only to slightly below market rate, so that the tenant will stay. Check rates in the area for similar units, send the notice of increase within the appropriate time frame, and don't discuss it with them. If they don't pay the increased rent when it's due, give them a notice to quit.
We have made the mistake of responding to a tenant who argued over a rent increase. We shouldn't have. We should have just given them the notice to quit.
NoMoreSnowForMe I completely understand your point and agree, with some exceptions.
The value of RE goes up over time
Clothing and utilities are consumable items and not really comparable to RE.
However, and I don't mean to sound heartless when I say this, renters rent at the landlords pleasure.
When I rented, I understood that the property was not mine and the landlord could do what they want within the confines of the lease and the law. And if I didn't like it, I could leave.
My only point was that I believe it is a good business model to keep rents lower than market to keep good tenants.
I understand, but as a business person, and let's say a landlord in particular, you need to consider - what if your property all of a sudden came under rent-control, for instance. Also, in CA, you need to give more notice to raise the rent, depending on when the last time was you raised the rent, and by how much.
If you want to run a charity, that's fine. But if you are running a business that you may want to sell at some point, where the value will depend on the income, etc., then you need to keep your rents as close to market rate as possible.
We kept rents just a tad under market for what our tenants could find anywhere else. So, let's say we raised the rent from $1,000 to $1,150, for instance. I would have first done my research and learned that when they hit Craigslist immediately after getting a rent increase, they would only find apartments with a bad commute or which were in less desirable neighborhoods, etc., for the same price we raised their rent.
You can still offer them a good enough price to stay, without giving away the farm.
After all, Comcast, Verizon, the electric company, etc., isn't going to care how long you've been a customer. It's all business. Yes, depending on the market, it may behoove a business to offer a special rate to keep loyal customers, but that's rare, in my o[inion. Just depends on the market.
Do you think increasing rent by inflation rate is fair?
There are dozens of inflation calculators on the internet, so it's not hard to figure out how much a dollar is worth.
I raise rent every year by a factor just under inflation rate. https://data.bls.gov/cgi-bin/cpicalc.pl
I punch in the original rent, and let it spit out my new rent.
Wages and food and everything else has gone up over the last 5 years. It would be dumb to not raise rent the same way.
Perhaps it may also depend on what age group you're renting to. I am retired and subsist solely on Social Security which has either zero or very low COLAs, and the reason is because the government tells us there has not been any inflation.
Perhaps it may also depend on what age group you're renting to. I am retired and subsist solely on Social Security which has either zero or very low COLAs, and the reason is because the government tells us there has not been any inflation.
But, if your landlord’s property taxes have gone up 9% (as mine have), do you expect the landlord to simply keep your rent the same? Or, if the property insurance goes up 12% at the same time, again, your rent shouldn’t go up? If your rent is basically covering the property expenses, and they go up, should your landlord now dig into his own pocket to support the house since you don’t have the ability to pay an increase?
Why, then, should anyone ever rent out property if tenants can’t afford to keep up with rising expenses and feel rents shouldn’t increase for them?
Answer is, you need to move someplace cheaper or find a way to generate more income. Owning and renting out property isn’t a charity, its a business.
Perhaps it may also depend on what age group you're renting to. I am retired and subsist solely on Social Security which has either zero or very low COLAs, and the reason is because the government tells us there has not been any inflation.
Sad, but true.
However, if the government won't give you enough SS to live on, it is not the private landlord's duty to make up the difference out of his own pocket.
I feel bad for the seniors whose SS check isn't even enough to pay rent, let alone any other living expenses, but I can't adopt them and provide a comfortable life for them. I have my own family that I must care for and my own old age retirement to provide for.
I understand, but as a business person, and let's say a landlord in particular, you need to consider - what if your property all of a sudden came under rent-control, for instance. Also, in CA, you need to give more notice to raise the rent, depending on when the last time was you raised the rent, and by how much.
If you want to run a charity, that's fine. But if you are running a business that you may want to sell at some point, where the value will depend on the income, etc., then you need to keep your rents as close to market rate as possible.
We kept rents just a tad under market for what our tenants could find anywhere else. So, let's say we raised the rent from $1,000 to $1,150, for instance. I would have first done my research and learned that when they hit Craigslist immediately after getting a rent increase, they would only find apartments with a bad commute or which were in less desirable neighborhoods, etc., for the same price we raised their rent.
You can still offer them a good enough price to stay, without giving away the farm.
After all, Comcast, Verizon, the electric company, etc., isn't going to care how long you've been a customer. It's all business. Yes, depending on the market, it may behoove a business to offer a special rate to keep loyal customers, but that's rare, in my o[inion. Just depends on the market.
Yeah, there is a group where I live that wants rent control. If this groups gains a foothold, I would get out of the game altogether.
I don't know why you thought I was suggestion running a charity? It is a business and an someone else said, it's a balancing act.
BTW, the companies you mentioned will give you a discount on your bill if you tell them you are going to another carrier.
The flip side to this is that as a good tenant, this one is fairly easy to work around with some good negotiation skills.
The townhouse my roommate and I rent tried to push through a 5% rent increase at our last renewal. We went around and found some comparable local options with good move in specials at our below what we were currently and went back to the leasing company with that info in hand. We didn't outright threaten to leave, but we got our message across in a diplomatic manner and settled on a 2%.
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