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Old 02-28-2013, 04:01 PM
 
1,392 posts, read 1,957,657 times
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So, in my apartment building, like in others, they raise the rent every year by 5%. I've only ever lived a little more than a year in my own place, so I don't know if they're willing to negotiate (I didn't try this past winter when my lease was re-newed). But my understanding is this is what they do in general.

Does anyone know why they do this? One lady I know said that they do because their taxes raise every year. What did she mean by that? Do the property owners actually pay more every year in taxes for a unit when a tenant is continuously occupying it? If so, why does the township do that?

Any tips on getting out of a 5% raise on my rent next year, without moving out?
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Old 02-28-2013, 04:45 PM
 
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Property tax got risen every year. I lived in NJ for 3 years and my property tax already gone up 20%.

You can always move if you thing the rent is too high.
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Old 02-28-2013, 04:56 PM
 
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Quote:
Property tax got risen every year.
OK, but is that for the whole building, like with houses, or is there something special with apartment buildings where the town claims that a unit is suddenly more valuable (and hence owes higher taxes) now that there's a tenant in it?
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Old 02-28-2013, 06:31 PM
 
Location: NJ
516 posts, read 899,750 times
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Unless the apartment building is very large and/or rent controlled (in which case, its tax is determined by its rent roll), for most small buildings, the building has an appraised value and when the city increases its property tax, the building's taxes go up as well.

Regardless of whether the reason you were given for a rent increase is real or not, as a tenant, you have few choices:
1) try to negotiate
2) suck it up
3) move out

Often times, when rents in your neighborhood go up (say your neighborhood becomes more desirable), your landlord will try to increase your rent as well to the "market rate".
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Old 02-28-2013, 06:36 PM
 
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The owner / management pays the property tax the same no matter who's living there, or if the Apt is empty.

Taxes go up... the price of heating and hot water go up... the price of hiring maintenance workers goes up... plus many managers are investing in improvements and renovations to stay competitive with other properties.

Also, if the place is full-- it's simple supply and demand and whatever the owner can get away with.

That's just apartment life.
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Old 02-28-2013, 07:10 PM
 
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well that sucks

anybody how hard this sticks? What are my chances they'll not raise the rate if I say I don't want to pay a higher rate and I'll just move if they apply the higher rate?
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Old 02-28-2013, 07:33 PM
 
Location: Pennsylvania & New Jersey
1,522 posts, read 3,988,738 times
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What town are you in? In a rent-controlled town without vacancy decontrol, owners may decide to raise the rent annually even if its above 'market value' since if they don't use the increase, they lose the increase.

That said, it takes nearly two years for a landlord to recoup one month's vacancy loss for a five percent change in rent. Two month's vacancy is not uncommon in such circumstances -- so do the math!

So how about a counter offer? Try writing to management, offering them to remain their tenant on the same terms and conditions you now have, including the rent amount. (I'd take that offer from a good, hassle-free tenant.)

How much is your monthly rent compared to the amount the landlord is asking for vacant apartments in the building? You have a better chance of the landlord foregoing an increase if you're at or close to market value.
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Old 02-28-2013, 09:02 PM
 
1,392 posts, read 1,957,657 times
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Quote:
That said, it takes nearly two years for a landlord to recoup one month's vacancy loss for a five percent change in rent
What?
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Old 02-28-2013, 10:52 PM
 
Location: Midwest transplant
2,050 posts, read 5,527,410 times
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Do the math=if an apartment is currently at $1000 month, and landlord raises the rent (5%) to $1050 per month. Present tenant decides to vacate (rent too high) so apartment is empty for 1 month. LL is out $1050 for one month b/c apartment is vacant(vacancy loss). Divide $1050 by $50 (increase)=21 months that the landlord had to have new tenant in place to make up for missed month.

In answer to your question about negotiating your rent, try it and see what happens. If you're a good tenant they might work with you. Otherwise your option is to move. That can be as expensive as just paying the higher rent. The costs of moving, reconnecting utilities/internet/cable, the security deposits, application fees, and the other "changes" that have to be made might be more hassle than staying and paying.
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