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I'm seeing posts that talk about LL's bidding up prices and causing economic hardship for renters.
It wasn't that long ago that a lot of the same people were complaining about bank bailouts and "too big to fail" blahblah.
Houses were (on average across all regions) HALF of what they are now, rates were under 4% and no one wanted to buy a house because the gov't was in cahoots with banks.
Shrewd investors went against the grain (and still are in some markets), put their money/credit at risk and are now reaping the bennies. There was never a better time in America to buy a home and too many people wouldn't do it. Now they complain about being priced out.
It'll always be something with chronic complainers.
Most LLs will jack up the rent according to what they deem the "market value" is, even if the higher rent apartments are in the better part of the same town.
They use 'market value' as their excuse to feed their greed.
Quote:
Originally Posted by JONOV
...And if they are overpriced, they won't rent. That's the point of market value. If your LL is wrong about market value, then stick it to him with a notice and move.
I understand why a house in a good part of town rents for more in a bad part of town. I can usually figure out if its a good part of town by driving or walking through. If not, 5 minutes on the internet will tell me all I need to know.
Quote:
Originally Posted by katie45
Doesn't work that way, not in our area anyway. There are people on the wait list who think this apt complex is their utopia.
Um, that means the market value is correct. Actually, if there is a long waiting list, they are probably still under market value and they should probably raise the rent even more.
When there are no people willing and able to rent there at the price they are charging, THAT would mean they are above market value.
No one has stated the fact that some people do not aspire to be rich or for material processions... I have met a few over the years.
One is a High School Physics Teacher that started out in the Peace Corps in the 1960's... he spends all of his free time and most of his money designing water systems for poor areas around the world... he refuses to own a car... still was still walking and biking at 60.
Another is a family friend that came into a big windfall... totally unexpected... it was nearly two million in a brokerage account left to her by a distant retaliative... the will said she would know how to do the most good with it... she has donated almost all of it over the last 5 years.
These are not people living in tents... some rent and others have very modest homes...
They really have little desire for wealth or materialism.
I think a lot of us fall somewhere in the middle.
I certainly could have pushed the envelope with my rentals... training tenants not to ask if the rent is going up but how much is it going up.
Some of my families have been with me since the 1980's... it is their home...
Don't get me wrong... I am fully capable of dealing with problems... none of my tenants are behind on rent... for the most part they appreciate me and for some... that appreciation develops after they leave.
Again... if you live for the dollar sign... it is your choice... my philosophy is live and let live and owning rentals lets me practice this.
When I managed rentals for others it was not and could not be this way... I had the duty to look out for the owner's best interest.
I would just move to a lower COL area if all i could get were low paying jobs. Like I mentioned before, I have no idea why some people feel entitled to live in a prestigious area when you don't have the prestigious job and income to afford it. At least don't complain about it. As much time as the OP spends on here, he could be utilizing some of the advice given. Personally, I think the OP is just something that starts with a T and ends with an L.
Agreed. If I was at the bottom end of the labor market and didn't see myself doing any better, I'd try to get to the cheapest area possible. I don't know why people try making it in the major metros on ten bucks or something.
I'm not colossally funded like the National Association of Realtors, so I don't have the resources to do the necessary research. But clearly, to the extent landlords are buying condos and SFR on the open market, they are successfully outbidding prospective owner-occupants who would be buying those homes if not outbid by landlords.
And no I can't go back to school since I have no money after paying the too-high rent. I have a self-employment skill but cannot use it renting a single room in an overcrowded house with no storage - if I had 400 sq ft of living space I could keep my inventory at home and happily make more money.
I don't support rent control but since I consider rent control (price control for incumbent tenants, which redistributes income and wealth from landlords to tenants) and zoning (supply control for incumbent homeowners, which redistributes income and wealth from renters to owners) opposite sides of the same coin, I believe municipal governments should have either a local option for both or a local option for neither. Numerous state legislatures have taken sides and chosen winners and losers, by allowing local option for zoning but not for rent control. All I ask is that states put local governments on a level playing field.
You couldn't afford to buy even a tiny house.
Quote:
Originally Posted by Serious Conversation
There are many properties and tenants out there that are relatively trouble-free and are pretty much on autopilot. My building contains eight units. As far as I know, there has been no maintenance or upgrades on the shared spaces (foyer area, roof, outside walls, etc.) since I moved in two years ago. I've had only a couple minor service calls (mostly involving garbage disposal) as well as a stove replaced.
The income from these units has probably been mostly profit to the landlord.
LOL. I used to be a property manager of 25 units. You think fixing a garbage disposal and replacing an oven is minor? Minor is a phone call asking how to open a window.
So, lets say your other 7 neighbors also had 2 "minor" calls. So, 8 stoves, 8 plumber calls to snake kitchen drains, and maybe 8 garbage disposals. And all of the phone calls and schedule arranging for those "minor" things with the plumber, appliance store, tenants who insist it only happens on certain day and time, then calling back the plumber and appliance store and playing phone tag and trying to get everyone coordinated...
Can you think of anything else the landlord might need to do? Pay bills, answer calls, pay taxes, banking, show units, screen tenants, and be on-call 24/7. Listen to complaints, call problem tenants, deal with landscaping...think of anything that can go wrong with customers, vendors and any home maintenance, lawyers, accountants, paperwork, spreadsheets, budgets...
Right, rentals just automatically deposit money into landlord accounts.
I'm a renter now and I can't live in my favorite area. That's life you all. Grow up.
The best way to get an upgrade is to vote with your feet... the beauty of being a renter is just that... no long term commitments.
I had a tenant approach me who said she would be willing to $250 more per month if I would redo the kitchen... at first I said no... because I detest working in occupied units.
She said she was willing to sign a 2 or 3 year lease and would be away for 3 weeks in August...
To make a long story short... it went well... she was with me another 8 years and the only reason the new kitchen happened is because she gave me an incentive.
I used to be a property manager of 25 units. You think fixing a garbage disposal and replacing an oven is minor? Minor is a phone call asking how to open a window.
So, lets say your other 7 neighbors also had 2 "minor" calls. So, 8 stoves, 8 plumber calls to snake kitchen drains, and maybe 8 garbage disposals. And all of the phone calls and schedule arranging for those "minor" things with the plumber, appliance store, tenants who insist it only happens on certain day and time, then calling back the plumber and appliance store and playing phone tag and trying to get everyone coordinated...
Can you think of anything else the landlord might need to do? Pay bills, answer calls, pay taxes, banking, show units, screen tenants, and be on-call 24/7. Listen to complaints, call problem tenants, deal with landscaping...think of anything that can go wrong with customers, vendors and any home maintenance, lawyers, accountants, paperwork, spreadsheets, budgets...
Right, rentals just automatically deposit money into landlord accounts.
I'm a renter now and I can't live in my favorite area. That's life you all. Grow up.
We're talking three total calls over two years. For me, they're coming out less than once every six months. I'd say that's pretty trouble-free.
The garbage disposal was serviced twice. The worst it did was backup into the sink then drained slowly. By the time they snaked it the next day, it had drained itself.
The stove was simply replaced with a new one as a condition of me signing the lease again. They basically documented the old one wasn't damaged by me, then installed the new one. I doubt that took very long.
This is a large property management company managing probably at least a hundred units in this complex, and owns other properties in town. I'd wager there is a staff plumber, electrician, etc., to do simple maintenance. If it's something more sophisticated, they probably have contracts with local firms at a discounted rate that are a better deal than what an average citizen or small landlord could get.
id'e think that I would rent moving to a new location vs plunking down a wad of cash on a house and then regretting it!!!
I have also wondered how places such as san Francisco can keep home prices rising. if the average population can't afford it. I think it will only be a matter of time before there's a major price collapse..
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