Negotiating a crazy rent increase (leases, landlords, profit, pay)
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We have a new apartment building in my town asking $2,200 for a 600 sq ft 1 bedroom unit (no w/d in unit, tenant pays all utilities). There is nothing luxurious about the building or the unit and nothing to write home about the amenities. Plus it's located in a very run down part of town with a high crime rate.
Will it rent? I'm sure someone will take it thinking they're getting "such a deal".
The surrounding apartments (old and rundown) are renting $650 - 800 for a 1 bedroom . . I would not be surprised to see those rents jump through the roof with the owners claiming "Market Value!!!" as an excuse to jack up the rents.
Monkey see, monkey do.
Yup, and that's why I need to buy now, now waste my money renting. I rather buy an outdated condo at a good price than rent an overpriced apartment/condo.
We have a new apartment building in my town asking $2,200 for a 600 sq ft 1 bedroom unit (no w/d in unit, tenant pays all utilities). There is nothing luxurious about the building or the unit and nothing to write home about the amenities. Plus it's located in a very run down part of town with a high crime rate.
Will it rent? I'm sure someone will take it thinking they're getting "such a deal".
The surrounding apartments (old and rundown) are renting $650 - 800 for a 1 bedroom . . I would not be surprised to see those rents jump through the roof with the owners claiming "Market Value!!!" as an excuse to jack up the rents.
Monkey see, monkey do.
Now you're talking about renting out rundown affordable apartments for 3x what people are currently paying for them.
It does not happen that fast. Gentrification takes a while. Not only that, but that would be terrible if that was happening to affordable housing on the heels of a pandemic.
But I'm not gonna sit here and argue about it for pages either. For those who have apartments you are renting, get what you can get.
I think the more important question is can you find a comparable unit to move to for $2,050? If not,then you won’t have much of a case with your current landlord.
Exactly. I'll be giving my tenant 90 days from the beginning of Jan to find a new place. Current rent is a good 600 under market rate. Rents have skyrocket over the past 24 months. The increase will help cover the upgrades once the house is vacant.
The current renter can barely pay the rent on time. No chance she can afford a $600 increase.
Best just to tell her I'm considering my options which includes selling. Then re-rent the property after its cleaned up at market rate.
I am actually considering moving to my dad's condo up north in Jupiter (for a few months) not pay rent and just buy a condo.
There's your leverage. You have another place to live rent free.
"Dear landlord, your proposed rent increase of $2550 is declined. I am willing to pay $2050 for another year's lease. If you do not accept my offer, then this is your notice that I will be vacating and surrendering the unit by such and such date."
Frankly, though, you'd be better off moving to your Dad's place and putting away that $2050 per month (or more) and then buy your own place.
As a landlord for over 2 decades, I never raised rents every year. I'd go 3-4 years before bumping it up if it was the same tenant. Come renewal time, my property management company suggests $30 too $50 increases. I just renew at the same amount.
Perhaps not the most financially savvy decision. But it's not about milking every dime I can get. When a tenant moves out, I'll adjust the rate to the local market. I have been seeing some pretty sweet bumps in what I collect for rent. To be honest, I doubt I'd pay what I charge to live in any of my places. I still recall rates from 40 years ago, so now today's numbers make no sense to me.
With rapidly rising inflation, a lot of people are feeling it's financial effect. Good luck to the OP.
I operate my own rentals very much the same for low maintenance tenants...
There are places with Rent Control for those that desire...
Sadly, this is totally accurate about S FL. Renters are not in a position to negotiate when others are willing to pay the market rate. It's really nuts and I feel for people that are looking for affordable housing. Not sure when it's all going to normalize, but it doesn't look like it's anytime soon.
One of our good friends had to raise the rent on his tenants in the Miami area. He was very kind to them during COVID, but he can't continue to absorb the rising costs. He had to raise the rent on all the units to compensate for higher insurance costs (insane here), taxes, regular upkeep, etc. He allowed one tenant to stay until the end of the month (paying the old rate) until they found a new place to move to because they couldn't afford the rent increase.
Having said that, you can always try negotiating the increase with your landlord. Be very tactful about it, point out the positives; the worst they can say is no. You'll never know unless you ask. Good luck to you!
This is very true as hefty property tax, insurance and utility costs are the reality and trades prices are all up across the board...
Owners did not create this but one of the few in business to take the brunt without recourse...
I have one tenant that stopped paying and for a period there was nothing I could do about it...
How do you simply stop... as in not one dollar and not expect ramifications down the line... besides that single family would rent for 30% more instantly with nothing more than interior paint...
I have a 3 bedroom 2 bathroom pool house with double garage rented under market value at $1250 a month in lake county, the tenant rarely goes a month without an ac repair, swimming pool issues, tree cutting or even a towel rail that needs tightening all at my expense.
The agent called yesterday to say rents have gone up considerably in the area and wants to increase the rent to $1500, after this year’s expenses I was happy with that suggestion, the tenant came back today to say they won’t be renewing at the end of February, I’ve looked at houses in the area and it looks like the tenants will be moving to a mobile home….
Last edited by britinspain; 01-11-2022 at 02:18 PM..
I also see a fair amount of 1 bedroom condos in the South Beach area of Craigslist in the $2000 range and less...
It is common knowledge in South Florida that you never, ever rent off Craigs List. They are all most certainly scams. There aren't any deals in South Beach or if they are under $2000 they are in fifty year old buildings with zero amenities.
Quote:
Originally Posted by thinkertinker
I think this is a wake up call for me. I am going to move to my father's condo for four months and live rent free. It's just 45 minutes north of here. I am going to save up. I can save about $8k if not more, plus on top of that I should be getting a $15k bonus in March. Add that money together, and it will allow me to put a good down payment on a condo here in Miami.
Condos in the neighborhood I currently live in are still doable. There are 1-bedrooms in my building going for $175k. So I think it's time for me to sacrifice living here for a bit and make some more financially sound moves.
It's 40 minutes from Jupiter to the West Palm Beach Brightline train station. I literally just did the drive. Then you have an additional 45+ minutes on the train. You aren't doing this commute in 45 minutes unless you are on a helicopter.
It is common knowledge in South Florida that you never, ever rent off Craigs List. They are all most certainly scams. There aren't any deals in South Beach or if they are under $2000 they are in fifty year old buildings with zero amenities.
It's 40 minutes from Jupiter to the West Palm Beach Brightline train station. I literally just did the drive. Then you have an additional 45+ minutes on the train. You aren't doing this commute in 45 minutes unless you are on a helicopter.
I work remotely. So it's a once a week commute to see friends in Miami at most.
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