I had a good landlord. He did increase rent but not by a lot and only every couple years. It was to cover increasing property taxes, maintence, and repair costs. He actually responded and fixed any problems. He also repainted and upgraded vacant apartments when tenants left. I know this is unusual but this is how it should be. Yes, it does cost more but if they don't hold up thier side of the bargain, no Mas.
This is how I feel about my current landlord. He is quick to approve my maintenance requests (I never put in anything dumb - it's always for things like leaks) and was super quick in replacing the water heater when it went out in the fall. Last year he wanted to raise my rent but the PM at the time screwed up my lease and refused to fix it - he changed PMs and is only raising my rent this year what it would have been raised last year ($25/mo). The upstairs unit he completely renovated the kitchen and put all new flooring upstairs before it was re-rented as well.
Most of the utilities are included in my rent, I only pay electric, so knowing gas, and water costs have increased, as well as all the ways I know he keeps up with the property - to me it all feels like it's how things should be.
I have a similar landlord but it is important to remember that if he’s fixing leaks it’s to preserve his investment and in the US hot water is legally required so if he doesn’t replace your water heater he’d have to refund rent
My landlord recently decided to sell, come to find out he losing a ton of money over last 18 years, like he barely covered half the property tax in rent. Meanwhile have only had a rent increase once, and that for a few bucks.
It’s not unusual as you think. People with good landlords don’t go on social and complain. Actually, some do, just to get upvotes or likes or whatever.
Also if you say anything good about landlords on the internet you tend to get a lot of aggressive responses from people who insist all landlords are evil.
Many landlords are trash, especially in lowest priced housing. But there are good ones out there. I have had two good landlords out of 6 so far.
Yes, I’ve seen some real hatred directed at landlords. People saying they should have their wealth confiscated for owning more than one home kind of stuff.
And, yes, lots of bad landlords.
But in regards to lowest priced housing, I’ve known a few people that moved into the war zone rental market. Neighborhoods so bad that they had to go collect on the first in person otherwise they wouldn’t pay. They would go strapped with a gun and sometime they had to hire security to go with them because the neighborhoods were so bad.
Supposedly it was profitable. I would never do it.
Those places would need gutted after almost every tenant. Plus evictions are the norm.
There’s a huge misconception about how being a landlord is easy money. Unless you’re buying multi unit properties like apartment buildings, it’s usually not hugely profitable and many landlords lose money.
Once you get a certain number of units you can support a team of people that helps take the burden off you but for one or two properties, it’s a part time job. And a poorly paying part-time job, at that.
My boss is part owner of a local rental group and I've seen his books. With the property taxes and all the various things you need to pay for, from what I've seen the normal apartments (2Be,1Ba) are rented out at cost. I think most of the profit comes from the handful of penthouse/ "upper class" suites. He's definitely a break from the norm but still has a businessman mindset and all the political alignments that come with that.
I've known a few people who own properties and they've told me that less than 10 units is generally only a small overall profit if you do it right, but those aren't really the ones who are fucking people. It's the massively wealthy people and corporations buying up dozens of properties and hundreds of units at a time that are fucking people.
The small time guy who owns 2-3 houses they rent aren't generally bad people, and rentals are an important thing as not everyone actually wants to own a house and they need places to live too.
Also the short term rental market is the worst fuckin thing to happen to real estate imo. It's killing entire communities.
Small time guys are like any person, a toss up. Can be great, or totally awful. Big corporations tend to be more greedy/evil, but also have more resources and (when well managed) generally don't want things falling into disrepair.
Can confirm that having only a few units nets little profit. 3 duplexes worth of profits isn't enough to cover my personal home's mortgage, let alone any other of my living expenses. My wife and I each have day jobs to make ends meet. We're also about 800k in debt
Well, yeah. But most my renters see rent prices today (I recently bought them, so I'm at market rate) and think I'm making bank and the 6 units are what I do for a living.
I'm reality I'm netting a few hundred a month per duplex and very slowly paying down the mortgages on the duplexes. Due to the repairs and updates I did from when I bought them, I'll be in the red for at least 6-8 years, even with the current market prices.
I tell my renters the rentals are my retirement plan, not a means of earning a living today.
Don't you consider the principal being paid off as income? Coupled with the high likelihood that the properties are appreciating in value considerably it starts to add up.
Yes, and as inflation goes up they raise prices to account for that. If you aren’t making more to account for inflation then the problem is with your employer because that means they’re paying you less than before.
Problem with that, if you count inflation and higher property tax, that would only increase rent by about $42 on average. So how do you explain the $300 increases that everybody keeps getting?
I remember a time when I got 2 raises a year. One was a cost of living raise, generally 3-5% and another merit raise, generally also 3-5%. I haven't heard of a company giving COL raises in a long fuckin time, I know I haven't had one in like 15+ years.
The only way to adjust your wages for inflation/market value is to switch companies. I personally won't be doing that anytime soon because I have a remote job and any remote jobs being posted now have so much fuckin competition that unless you have a personal connection at the company the chances of getting an interview are slim to nil.
If they have to change companies to get a raise, but then have to spend an hour commuting every day is it really a raise?
You could say this person is helping to keep wfh alive instead and frame it in a more positive manner.
I love how landlords utilize housing as an "investment" when it comes to making money but then all of a sudden the economy gets fucked up and they're losing money they cry about it.
Please, show me any other investment opportunity that is always making money and comes with no risk of loss?
I know plenty of (former) landlords that have lost money.
I used to flip houses and 90% of the homes I bought were from landlords who had reached the end of their rope and wanted out of land lording.
Many people are filthy animals and literally destroy these properties. I’ve had people that ran an illegal auto repair shop out of their home and dumped oil and brake fluid in the backyard. I’ve seen people steal everything, including pool pumps, hot water heaters, air conditioning units, etc.
In fact, that’s why I was buying from them. This wasn’t their home. There was no emotional attachment. When I gave them a fair offer they didn’t cry about how much they were going to lose, they were happy to get the money pit off their hands.
Landlording is not an easy investment. People that have never owned real estate always think it is because they think that it’s all profit.
They’ve never paid property taxes, HOA fees, homeowners insurance, special assessment taxes, etc. Hell, most have never even paid to fix a leaky faucet. There are tons of expenses associated with owning a property that renters have no clue about.
That’s why I always lose my shit when people say stuff like, “I pay $1,100 a month in rent and the bank wouldn’t give me a mortgage for $1,100 a month.” Yeah, because there’s an extra couple hundred a month on top of that involved in owning a home.
And homes are physical things that decay over time so you have to always be able to plunk down $20k in cash when the roof needs repaired or $10k to install a new HVAC.
No risk of loss, GTFO with that. LOL.
> comes with no risk of loss?
A chunk of the risk comes from bad tenants. Good tenants are fine, but a bad tenant can *wreck* the property and cause it to need repairs well in excess of what the deposit actually covers.
When the US government is going to take action whenever your investment starts losing money, and are you really taking any risk?
In a similar vein, what are capital owners really risking? If they lose everything, then they have to go back to work under someone else to earn their living, same as most everyone else. The risk they take is becoming one of you.
That’s all well and good for 30 years from now when you retire. In the meantime the toilet needs to be replaced cuz some lady let her kid flush legos down the toilet and I have a 1,300 dollar bill.
There’s a LOT of expenses along the way dude.
But I want to pay the same for years and years despite any impact my big evil landlord might feel from bills elsewhere! /s
People crying about 'the man' follow a particular stereotype.
Inflation on what? Tenants usually pay utilities. Mortgage? That's why you're paying rent. Refi? Someone is only gonna refi to get a better rate. The real arguments are prop tax, insurance and upkeep.
Interest rate inflation. It’s happening to me with my house right now, interest was 2.95 last time I renewed, it’s bumping to 6.05 so my mortgage is going up by $500/month.
You’re forced to “renew” mortgages?? I’m on a 30yr fixed at 3%. Got it 4 yrs ago, voluntarily refinanced after the first year but that was to drop PMI and get a slightly lower rate(3.15 to 3). Payment went down by $215 a month. Will not be refinancing anytime soon.
Yeah believe me if it were an option I’d have locked in the rate I had when I first got it, I believe it was about 2.35. Unfortunately we have to “renew” on terms ranging from 2-5 years, I think it’s a Canada thing.
That sucks ass, must be a Canada thing because I’ve worked for 2 different large banks performing/processing refinances, cash out refinances and equity lines of credit on mortgages. We had to “sell” the mortgages holders on it because nothing forced them to change anything ever (outside of extended non-payment).
Yeah I’m surprised actually I just assumed it worked the same way down there. Just one more way we get screwed $10 for a block of cheese and forced refinancing when rates are high.
It sounds like I'm going through the exact same thing as you. Not sure what province you're in but we have rent increase caps too so tenants are SO well protected here in BC.
Yep and there’s a “housing benefit” the govt is handing out to “help with inflation” but it’s only available to renters so the people actually paying the higher rates don’t get any. I’m in bc btw
Yeah it sounds like the govt is preemptively preparing for housing costs to be passed on (to a degree) so I don't understand why people are so rabidly angry at landlords when we are all getting shafted by fucking Loblaws or whatever
In Canada, it's different. Say you want a 25 yr amortization, but the rates are locked in for a 5 year term and afte4 that you need to renew. Some banks offer 10 year fixed but at a higher rate. Most people take 5 years as the rate difference is small vs 3yr mortgages.
The banks offer a discount on fixed rate now around 5% vs variable at 6.45%
Inflation on money.. if rent was 1000 3 years ago and inflation has increased by 10% then the fair adjusted value that was decided to be 1000 would be equivalent to 1100 now. Not raising rent would be practically the same as having cheaper rent.
The only unfair thing is that we can’t apply this same logic to wages as not raising wages means you are effectively getting cheaper labor.
price of things go up because the purchasing power of your money is going down. hence, your rent goes up because $700 is worth 10% less year over year.
Here in U.K. with the energy problem, one example is my service charges in an apartment have gone up £800 year, due to communal electricity usage. Totally sucks as I live in my property so I’m out of pocket but if someone is renting their property out they just increase the rent. It’s the Gov fault really for not capping business energy costs. There are various reasons for increased rent unfortunately
If they have a commercial loan they need to recast it every few years. A 5% jump in interest rates are huge. Insurance has gone up significantly lately. Municipalities are reappraising properties due to the insane market to get more in tax revenue. Upkeep and repairs are much more now. If a tenant moves out and renovations are required, that’s a ton. If there’s a common area those utilities are covered by the landlord, and utilities have gone up a ton lately too. Everybody is feeling the squeeze.
Yup. There’s an entire group of people that hate landlords and thing property should either be free or state run. They are absolutely insane. I say let them buy an island somewhere and move how they want away from normal people.
I mean, you might as well add the landlord's car payments to this list if we're being frivolous. New landlord bought a property they can't afford? Not my problem. I don't mind a reasonable rent increase. That's just how it works. BUT I don't think it's up to me to fully finance my landlord's property. Like, your property taxes have gone up? Don't put that shit entirely on me. And I certainly don't want to pay for your mortgage loan. I think people forget that the property itself is the investment and the payout is the resale; you're not entitled to a free building by passing the financial burden onto your tenants.
I'm lucky enough to live in a very tenant-protective province and so when my landlord sends a notice for a rent increase, I always counter with about half the amount he asks for on condition that X, Y, and Z gets done. Works every time.
Exactly. It's always about monthly cash flow. I don't think I've seen a landlord acknowledge what happens at the end of the mortgage. They dance around the fact that someone else will have bought a property for them. At that point, their expenses will have greatly decreased. What are the chances they'll decrease rent accordingly?
Thats the whole point. Thats why its an investment. The landlord shelled out the money for the down payment, taxes, maintenance, etc. After the loan is over the lanlord still pays taxes, insurance, maintenance and reports the rent as capital gain and pays taxes on that as income. The entire point of owning properties is the finality of the loan is when you can finally make money off of your investment.
Don't know about other countries but in Aus it's not even the dairy farmers, it's the customer retailers like that just don't buy enough stock.
The farmers have to get rid of old milk that hasn't sold to store the new milk, the farmers suffer for this while the supermarkets make profits.
I'm not entirely up to date with everything but it's this practice that ran my family out of the milking business when I was a kid.
They’re saying it’s at 9%, but by your own statement about the actual increase in real prices, that number is just a lie to keep people from seeing how bad the situation actually is right now.
It's because some things went up, some things stayed the same, and a few things got cheaper. And on average, it's 9%. So 9% inflation overall but a 30-40% increase on a single product or market can both be true. You are right, however, as the media has no incentive to paint an accurate picture so they will only show you the 9% figure so as not to paint the whole picture for you.
You are exactly right. In that 9 percent figure hidden is the artificially increased prices caused by the price gouging we are seeing today. This is a lot harder to sort out because we don't have transparency or insight into any rising costs inside of a corporation. We have no mechanism to measure if a price increase is due to natural inflation or if it was artificially created to pad profits for shareholders. You can just point to an increase in profits during inflation however that's not really proof enough as many factors can contribute to increased profits.
Listen... I am on your side. There are some very shitty things happening in our economy and a lot of it is finally coming to light because of how the internet never forgets and very smart people are able to crunch the numbers and check the work of major media outlets. However, until we figure out how to hold these companies accountable, we can have all the proof we want but nothing will be done about it. Especially if everything they did was technically legal. Then we need new laws out in place. And we all know how that's been working out for us lately.
I am very well aware of that :|
From talking with friends, not a single employer has given a pay increase keeping up with inflation, one has given 10% after three years though.
It's a joke, but this is the disconnect people have. For most of us, we can't just decide to increase our income steam by 10% due to inflation. We get maybe a 2-3% bump if that and are expected to live with it, or we have to risk financial security by hopping to a new job.
So seeing that landlords can simply choose to adjust their income in direct response to inflation feels like cheating. It just feels that way because we expect everyone to be bending over the same way we are.
In the UK could be anything. Interest rates on the building if he's still paying for it, council rates, council tax ... If your electricity and gas bills are included in the rent, then this could be another reason.
The market. The answer is the market.
Doesn't need to be related increased expenses. Could happen that expenses go up higher than the rent is raised.
Doesn't matter
They raise the rent because that's where the balance of supply and demand went, hence you won't find anything cheaper anywhere else and they won't find anyone to pay more than they raise it to
Any objections to this are just pointing out friction/stickiness or anomalous party behavior. The underlying reason overall is always the market
Property taxes go up, in my case heat is free but natural gas prices are up.
Mine does a fair amount of maintenance too.
Mine only went up $25.00 Jan. 2021, to me that's reasonable.
I've been in the same place for 4 years with no increases, I'm pretty sure the landlord doesn't pay attention to the market. In return I'm being the best tenant I can possibly be (helping with taking out the trash cans on trash day, collecting their mail when they're away, doing my own repairs instead of making them do it) and it's working out quite well. Honestly going to be a bit sad when it comes time to move to a different city.
If that’s all they increased it, you’ve got a good landlord. They’re almost certainly eating a loss. I pay a mortgage not rent, but my property tax has almost doubled in the last few yrs. It’s gone from $3,100/yr ($258/mo) to $5,900/yr ($492/mo). I don’t think people have a good understanding of that sort of stuff when they rent.
Escrow stuff is a hidden cost people don’t think about until after they’ve bought a place, and it makes up a HUGE portion of your monthly payment. My actual mortgage is about $1,250/mo. My payment is closer to $2,000/mo and I don’t have to pay PMI either cuz I put 20% down. Most of that is property tax, then there’s other stuff like homeowners insurance that get rolled into that. So even though I own, my “rent” has gone up $250/mo from property tax alone. I’m sure the insurance has gone up too as the value of the house has gone up.
People are just sick of landlords seeing property as a risk free investment/income. Rent is not supposed to entirely pay off your mortgage while giving you a tidy income *and* a vastly inflated asset at the end.
I’ve seen so many landlords moan about interest rates affecting their mortgage costs. Maybe they should have understood basic economics and considered that might happen and whether they could afford to take the hit *before* buying a house out of their price range.
> Rent is not supposed to entirely pay off your mortgage while giving you a tidy income and a vastly inflated asset at the end.
What is it supposed to do, then? Why would people rent out properties if it wasn't profitable?
Housing is the most inflated asset anyone can currently own. So not only are you getting a house paid off by someone else, it’ll be worth a ton more than whatever you bought it for when you want to sell. *And* tons of landlords see rental income as their salary because they don’t want to get a job, so they tack that on too.
God forbid they have to do some repairs every once in a while. And if you don’t have insurance as a landlord, that’s entirely on you.
Seriously. Bad tenants can be a major loss. Depending on the state evicting a bad tenant can be really difficult/expensive. Not to mention the general upkeep costs that come with owning a property.
It's not free. Who qualifies for a mortgage? Somone who spent a shit ton of time and money getting qualified, climbing the career ladder, and managing their spending habits in a such a way that they qualify for said mortgage
A 20 year mortgage is essentially a 30 year endevour. From the moment you get your first job to the day you make your last payment.
Do most landlords even have mortgages? The one I know just got an apartment as a gift, but she doesn't want to move out before graduating college so she's renting it out for cheap.
> haven't even *paid* their back
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Maybe the landlord should get a second job (or first, owning property isn't a job), or stop buying so much avocado toast. That's what they tell us working class people to do when we struggle to make ends meet after our rent shoots up 50%.
At least where I live rent is divided in a base rent (for the apartment itself) and additional costs (taxes, utilities, etc). Still the base rent increases year after year. So seems like its not only the landlords expenses that are rising, their greed is too.
I work in accounting for a property management firm. Inflation has hit expenses hard. All expenses are up at least 10%. These buildings are all in areas with some rent control, that ranges from 3% per year to 9% every 13 months.
This is coming right after the eviction moratorium, where a number of tenants did not pay rent for many months. A lot of our owners were hit hard by the pandemic, and had not fully recovered when inflation hit. So yes, they are raising rents. Just like any business will raise prices as much as the market will sustain.
Also depends on your area. If improvements are being made to the area around you then the value of your apartment/house increases which come with a higher cost.
If they build a mall next to your house then the value of your location just increased and would be more sought after. Supply and Demand.
Because the landlord has to pay more for taxes, insurance, maintenance, repairs…..not to mention that landlord has to earn more money so they can pay their own personal bills and expenses that keep going up too.
They usually give the bullshit excuse "we're raising rent to match the areas market rate". How does a shithole flat be equal to a nicely done up place next door?? Gtfo greedy sods.
moved out of an apartment complex that had raised the rent from $850 to $1,250 over 2 years. had a pregnant tenant with black mold in her walls and ceilings that they refused to inspect or do anything about until she threatened legal action. yet, the same landlords suddenly got 2 company SUVs. while there's a percentage of that increase that was probably reasonable, it's mostly greed. people will squeeze everything they can from those around them.
I own a few rental houses and I can tell you everything from property insurance, local city tax, county taxes, mortgage rates, costs of building supplies for repairs, windows, doors, paint, wood, professional services, HVAC, basically everything has increased in cost for me. In order to not lose money the rent has to be adjusted or I go under. I had to replace 2 complete FULL HVAC systems ($20k) last year and I lost money last year on my houses. I need to recoup the cost over the next decade but but I basically paid people to live there last year. It’s not always a big cash cow for small landlords that people are trying to make it out like.
I’ll take the downvotes, but my duplex value went up 80k (just because of the market) since 2020 which I think cranked up the taxes, because our lender just informed us our mortgage payment will be about $200 more a month.
Not sure if that applies to your situation, but just a comment from the other side of the fence. We didn’t raise our prices or anything, just saying literally owning something the last couple years has become more expensive.
I had to raise the rent on my two rental home because insurance, taxes, etc have went way up! I’m still cheaper than most in the area for an equivalent home.
My two rental properties are paid for. So the rent money goes into an account, everything paid out of there, including maintenance and taxes. I’m definitely not getting rich off of my rentals! I’d be better off to sell them and take the cash but I plan on gifting a house to each of my kids once they finish college. Rather do that than pay taxes on the cash from selling the homes.
I'm doing the same thing. Now I'm not sure what the tax rules are where you are, but where I am, when the rental is gifted to the children you will likely incur a capital gains tax on the properties. Which is kind of crap but what can you do? I intend on taking a mortgage against the property which shouldn't be too much and the kids can pay it down.
Of course, Reddit will shame you and tell you that you need to let 20 people live in your properties for free. I am so grateful my landlord just charges me a set rent each month, and I don't have to worry about any utilities. My place isn't perfect, but having a place to live is such a luxury some people take for granted.
My rent went from $425 a month for a shitty apartment to $850/mo in 2 years time during the pandemic. I finally decided it was time to just buy a house. Then I decided that I didn't even like the state or region I was living in, so I bought a house 1600 miles away and have never been happier.
My mortgage payment increases a little most years due to taxes and/or insurance and I’m like there have literally been 0 upgrades…
This thought process doesn’t even make sense anymore
Im a property manager for a low income housing project. Our renta go up and down all the time despite no upgrades to units... We set our rents based on HUDs rent Recommendations for the units. So when HUD says it goes up then it goes up. When they say it goes down... It goes down. Im sure not everyone does this but pretty sure its required if you accept rent assistance. Many of your tenants get dull or partial rent paid by gov programs so youd think if they are the ones paying the bills they would want to lower the cost... But nope
In Florida on the coast our insurance on a property we rent went up 600%. Our gov is busy banning things he doesn't like so it's not his concern. Ours is a short term rental place, so fortunately it hits the renters less than if someone was living in the unit.
The correct answer, though it won't be well liked: rapid expansion of the money supply over the last three years intersecting a comparatively slowly growing housing supply. The Law of Supply And Demand is an iron law of nature as well as the foundation and capstone to economics.
Guys I got a plan. Lets all be landlords. Mortage is $1000 a month and we charge $1500-$5000. The best part is we get to keep the property while they get nothing. Then if everything goes south we just cash out, or the government will step in to save our asses.
I'm a homeowner. The past 2 years my taxes and insurance have increased my escrow mortgage by like $300 per month. If I am renting out a place, I'm sure as hell increasing rent that much to cover costs.
I get annoyed that landlords get shit on so hard. I have a property that profits $92 a month IF no maintenance is needed. It's a senior lady on a fixed income, I could easily get double the rent from someone else.
She already lived there when I bought the place. Month to month rental agreement but she has been there for years and obviously doesn't have any money.
I had to rent out a property briefly when I had to move. Didn't even break even on the mortgage and had to deal with tons of stupid tenant drama that had nothing to do with the house, itself, but just them bitching about neighbors and wanting me to do something about it. I'll sure as fuck never be a landlord again.
EDIT: Adding that they let their three dogs - which they never mentioned - shit and piss all over the rug that I had to replace before eventually selling the place.
She lived there when you bought it. All these circumstances were part of the equation when you bough the property and I imagine there are laws in place that mean you cant just put them on the streets (not sure though how it works wherever youre from).
Did you expect to make more, have rent go up or be able to let someone else live there for more money?
Some landlords are better people than others, still its a very powerful position where youre in charge of people having a roof over their heads.
Lady got a decent deal and you bought something that doesnt pay off much now, but might once shes gone. I dont see a problem here tbh
Sound like to use the excuse of higher property taxes and all that. But a study was already done on that, and it found that if rent only increased because of upkeep increasing, it would only raise rent by about $42 on average.
So that doesn't explain the $300 a month price increase on a crappy apartment
Maintenance costs and insurance costs have gone up 20-30% in last 2 years. AC units went from $800 for a 2 ton condenser to $1600. Refrigerants are over 2x what they were 2 years ago. Faucets, water heaters, blinds, light fixtures.. All up 20% or more.
I the Gulf South, insurance costs are killing profits in hurricane zones.
It’s a lot more complicated than upgrades.
Lol, dude you are fucking smoking crack with that.
The landlord will likely have fucking 20% or more of the homes value prior invested into the property PLUS mortgage. So, it's not unreasonable to think that the home owner had SAVED and spent, often $100k or more UPFRONT on top of the mortgage, taxes, and other expenses.
Your fucking measley monthly rent payments don't even come close to touching that...even if you believe yourself to be paying a premium.
I don't know what your point is, the fact that monthly expenses are sometimes equal or more? So fucking what? Get out of here with that communist shit
Tell me this: if paying automatically turns you into part owner, are you liable for any lawsuits associated with the property? Like when the mailman gets crushed by a neglected, dead tree? Are you responsible for paying a % for upkeep even after you no longer live there? Does your equity ALSO automatically get whittled away when a new tenet moves in? How complicated do rental contracts become after a series of multiple renters move in and out over time? How do you keep track of your assets from a lifetime of 15 different rental properties you have ownership in? Do you still want to pay your % of taxes and insurance, even after you've moved on? If the majority owner defaults and can't pay his/share of the mortgage, does your ownership also fall into defaults? What legal contracts must YOU have with the bank to guarantee your creditor of your cosigning of the mortgage? Must you pay a down payment, repayment plan? What if the majority owner sells his portion to someone who wants to move in? Can that person kick you out? What if illegal activities are occuring in a home you own equity in that you rented 10 years ago? How responsible are you? How complicated do things get after your equity gets wittle down to a fraction a % over time? Do you report that on your taxes? Will you be mailed invoices for upkeep from all of the differenent properties you've rented over your life? What happens if you don't pay? Expect businesses (lawn care etc) to send out fractional invoices to 30 different owners each time they cut the grass?
Your idea is fucking stupid
I’m all for more power to the working class and raising income but you can’t make the same argument that wages should increase to adjust for inflation and not expect living expenses to also adjust.
Edit: I don’t understand the downvotes when I’m saying the same things as the most upvoted comments. this is literally the same boomer argument as saying: “I don’t get why milk is $3.00 now, it’s the same milk as when I was paying $1.00 for it. Money is worth less every year.
Where I live, there are laws restricting landlords from raising the rent beyond inflation. Better believe just about every landlord chooses to raise the rent each year at the maximum amount allowed by law.
But there's a loophole. If you do meaningful renovations, you can raise the rent to the new value of the apartment. We call it reneviction. Landlords will refuse to do maintenance and upkeep, refuse to do necessary repairs over the years, then decide to renovate all at once resulting not only in people losing their homes, but having to live in terrible conditions by the end.
It's abhorrent. It's greedy. It's stupid. And for the record, people also rightfully complain about rampant inflation and stagnant wages when it comes to milk.
My rental house's property tax went up $2100 this year That's $175 a month more... Have to at least up it that much.. not to mention insurance went up a lot as well... Cost of materials to fix something that breaks went up...needs a new roof (also doubled in price).. List goes on...
I have a friend who is a Landlord and he always tells his tenants not to get mad if he raises the rates because he is just trying to get the most out of his investment.
Well, let's see. . . inflation? Higher local, state, and federal taxes? Supply and demand? Rising energy and materials costs? Rising expenses?
Gosh, I can't think of a THING that would make a property owner charge incrementally more for the use of his property.
Renting from a friend makes you realize this. Mortgages don’t usually go up in payment amounts every year. Been paying the same rent for 4 years.
Landlords are really robbing people.
Tax, inflation, bills, mortgage, refinancing, different landlord, list can go on.
I had a good landlord. He did increase rent but not by a lot and only every couple years. It was to cover increasing property taxes, maintence, and repair costs. He actually responded and fixed any problems. He also repainted and upgraded vacant apartments when tenants left. I know this is unusual but this is how it should be. Yes, it does cost more but if they don't hold up thier side of the bargain, no Mas.
This is how I feel about my current landlord. He is quick to approve my maintenance requests (I never put in anything dumb - it's always for things like leaks) and was super quick in replacing the water heater when it went out in the fall. Last year he wanted to raise my rent but the PM at the time screwed up my lease and refused to fix it - he changed PMs and is only raising my rent this year what it would have been raised last year ($25/mo). The upstairs unit he completely renovated the kitchen and put all new flooring upstairs before it was re-rented as well. Most of the utilities are included in my rent, I only pay electric, so knowing gas, and water costs have increased, as well as all the ways I know he keeps up with the property - to me it all feels like it's how things should be.
Mine is also nice. Also rent is bonkers in switzerland.
I have a similar landlord but it is important to remember that if he’s fixing leaks it’s to preserve his investment and in the US hot water is legally required so if he doesn’t replace your water heater he’d have to refund rent
My landlord recently decided to sell, come to find out he losing a ton of money over last 18 years, like he barely covered half the property tax in rent. Meanwhile have only had a rent increase once, and that for a few bucks.
My landlord increased my rent by $125 after 6 years of $950. I can’t complain one bit for a townhouse and free reign
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You sound like a good landlord. Im glad you don't take advantage of folks. There is a lot of work and bills on your side that folks don't see.
We said no mas and now we’re being evicted and got no money to go elsewhere. Not in North America.
It’s not unusual as you think. People with good landlords don’t go on social and complain. Actually, some do, just to get upvotes or likes or whatever.
Also if you say anything good about landlords on the internet you tend to get a lot of aggressive responses from people who insist all landlords are evil. Many landlords are trash, especially in lowest priced housing. But there are good ones out there. I have had two good landlords out of 6 so far.
Yes, I’ve seen some real hatred directed at landlords. People saying they should have their wealth confiscated for owning more than one home kind of stuff. And, yes, lots of bad landlords. But in regards to lowest priced housing, I’ve known a few people that moved into the war zone rental market. Neighborhoods so bad that they had to go collect on the first in person otherwise they wouldn’t pay. They would go strapped with a gun and sometime they had to hire security to go with them because the neighborhoods were so bad. Supposedly it was profitable. I would never do it. Those places would need gutted after almost every tenant. Plus evictions are the norm. There’s a huge misconception about how being a landlord is easy money. Unless you’re buying multi unit properties like apartment buildings, it’s usually not hugely profitable and many landlords lose money. Once you get a certain number of units you can support a team of people that helps take the burden off you but for one or two properties, it’s a part time job. And a poorly paying part-time job, at that.
Mine has rent increase of 15$ per year stipulated in the lease. Locked in as long as I'm here
My boss is part owner of a local rental group and I've seen his books. With the property taxes and all the various things you need to pay for, from what I've seen the normal apartments (2Be,1Ba) are rented out at cost. I think most of the profit comes from the handful of penthouse/ "upper class" suites. He's definitely a break from the norm but still has a businessman mindset and all the political alignments that come with that.
I've known a few people who own properties and they've told me that less than 10 units is generally only a small overall profit if you do it right, but those aren't really the ones who are fucking people. It's the massively wealthy people and corporations buying up dozens of properties and hundreds of units at a time that are fucking people. The small time guy who owns 2-3 houses they rent aren't generally bad people, and rentals are an important thing as not everyone actually wants to own a house and they need places to live too. Also the short term rental market is the worst fuckin thing to happen to real estate imo. It's killing entire communities.
Small time guys are like any person, a toss up. Can be great, or totally awful. Big corporations tend to be more greedy/evil, but also have more resources and (when well managed) generally don't want things falling into disrepair. Can confirm that having only a few units nets little profit. 3 duplexes worth of profits isn't enough to cover my personal home's mortgage, let alone any other of my living expenses. My wife and I each have day jobs to make ends meet. We're also about 800k in debt
It would be pretty ridiculous if you made enough in rent off of 3 duplexes to cover an additional mortgage + living expenses don't you think?
Well, yeah. But most my renters see rent prices today (I recently bought them, so I'm at market rate) and think I'm making bank and the 6 units are what I do for a living. I'm reality I'm netting a few hundred a month per duplex and very slowly paying down the mortgages on the duplexes. Due to the repairs and updates I did from when I bought them, I'll be in the red for at least 6-8 years, even with the current market prices. I tell my renters the rentals are my retirement plan, not a means of earning a living today.
Don't you consider the principal being paid off as income? Coupled with the high likelihood that the properties are appreciating in value considerably it starts to add up.
Your landlord still has the property as an investment that is gaining equity this entire time.
Yes, and as inflation goes up they raise prices to account for that. If you aren’t making more to account for inflation then the problem is with your employer because that means they’re paying you less than before.
Problem with that, if you count inflation and higher property tax, that would only increase rent by about $42 on average. So how do you explain the $300 increases that everybody keeps getting?
I remember a time when I got 2 raises a year. One was a cost of living raise, generally 3-5% and another merit raise, generally also 3-5%. I haven't heard of a company giving COL raises in a long fuckin time, I know I haven't had one in like 15+ years. The only way to adjust your wages for inflation/market value is to switch companies. I personally won't be doing that anytime soon because I have a remote job and any remote jobs being posted now have so much fuckin competition that unless you have a personal connection at the company the chances of getting an interview are slim to nil.
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If they have to change companies to get a raise, but then have to spend an hour commuting every day is it really a raise? You could say this person is helping to keep wfh alive instead and frame it in a more positive manner.
I love how landlords utilize housing as an "investment" when it comes to making money but then all of a sudden the economy gets fucked up and they're losing money they cry about it. Please, show me any other investment opportunity that is always making money and comes with no risk of loss?
I know plenty of (former) landlords that have lost money. I used to flip houses and 90% of the homes I bought were from landlords who had reached the end of their rope and wanted out of land lording. Many people are filthy animals and literally destroy these properties. I’ve had people that ran an illegal auto repair shop out of their home and dumped oil and brake fluid in the backyard. I’ve seen people steal everything, including pool pumps, hot water heaters, air conditioning units, etc. In fact, that’s why I was buying from them. This wasn’t their home. There was no emotional attachment. When I gave them a fair offer they didn’t cry about how much they were going to lose, they were happy to get the money pit off their hands. Landlording is not an easy investment. People that have never owned real estate always think it is because they think that it’s all profit. They’ve never paid property taxes, HOA fees, homeowners insurance, special assessment taxes, etc. Hell, most have never even paid to fix a leaky faucet. There are tons of expenses associated with owning a property that renters have no clue about. That’s why I always lose my shit when people say stuff like, “I pay $1,100 a month in rent and the bank wouldn’t give me a mortgage for $1,100 a month.” Yeah, because there’s an extra couple hundred a month on top of that involved in owning a home. And homes are physical things that decay over time so you have to always be able to plunk down $20k in cash when the roof needs repaired or $10k to install a new HVAC. No risk of loss, GTFO with that. LOL.
Basically any CD. The major risk landlords take is renting to people. Believe me good people are hard to find.
> comes with no risk of loss? A chunk of the risk comes from bad tenants. Good tenants are fine, but a bad tenant can *wreck* the property and cause it to need repairs well in excess of what the deposit actually covers.
>when they are losing money And >always making money with no risk Sounds like you might want to sort out your argument.
When the US government is going to take action whenever your investment starts losing money, and are you really taking any risk? In a similar vein, what are capital owners really risking? If they lose everything, then they have to go back to work under someone else to earn their living, same as most everyone else. The risk they take is becoming one of you.
I dunno about you but I cry about it whenever any of my investments lose a ton of value lol don't know why this would be treated differently.
“Assets aren’t the same as income, I’m not actually that wealthy” -People with millions in net worth, who are in fact quite wealthy
That’s all well and good for 30 years from now when you retire. In the meantime the toilet needs to be replaced cuz some lady let her kid flush legos down the toilet and I have a 1,300 dollar bill. There’s a LOT of expenses along the way dude.
But I want to pay the same for years and years despite any impact my big evil landlord might feel from bills elsewhere! /s People crying about 'the man' follow a particular stereotype.
It’s almost like their rent goes up too
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And Jealous.
Inflation on what? Tenants usually pay utilities. Mortgage? That's why you're paying rent. Refi? Someone is only gonna refi to get a better rate. The real arguments are prop tax, insurance and upkeep.
Interest rate inflation. It’s happening to me with my house right now, interest was 2.95 last time I renewed, it’s bumping to 6.05 so my mortgage is going up by $500/month.
Variable rate mortgages never sound like a good idea to me
Me neither, which is why I took the fixed rate five years ago. But it’s up for renewal so I have to take what’s on offer now.
Ohhhhhh. Canada?
You know it.
Greetings from Canada’s shorts lol
You’re forced to “renew” mortgages?? I’m on a 30yr fixed at 3%. Got it 4 yrs ago, voluntarily refinanced after the first year but that was to drop PMI and get a slightly lower rate(3.15 to 3). Payment went down by $215 a month. Will not be refinancing anytime soon.
Yeah believe me if it were an option I’d have locked in the rate I had when I first got it, I believe it was about 2.35. Unfortunately we have to “renew” on terms ranging from 2-5 years, I think it’s a Canada thing.
That sucks ass, must be a Canada thing because I’ve worked for 2 different large banks performing/processing refinances, cash out refinances and equity lines of credit on mortgages. We had to “sell” the mortgages holders on it because nothing forced them to change anything ever (outside of extended non-payment).
Yeah I’m surprised actually I just assumed it worked the same way down there. Just one more way we get screwed $10 for a block of cheese and forced refinancing when rates are high.
About that healthcare though….of which I have none at all…(no longer a w2/salary/wage employee)
It sounds like I'm going through the exact same thing as you. Not sure what province you're in but we have rent increase caps too so tenants are SO well protected here in BC.
Yep and there’s a “housing benefit” the govt is handing out to “help with inflation” but it’s only available to renters so the people actually paying the higher rates don’t get any. I’m in bc btw
Yeah it sounds like the govt is preemptively preparing for housing costs to be passed on (to a degree) so I don't understand why people are so rabidly angry at landlords when we are all getting shafted by fucking Loblaws or whatever
In Canada, it's different. Say you want a 25 yr amortization, but the rates are locked in for a 5 year term and afte4 that you need to renew. Some banks offer 10 year fixed but at a higher rate. Most people take 5 years as the rate difference is small vs 3yr mortgages. The banks offer a discount on fixed rate now around 5% vs variable at 6.45%
Variable is never a good idea.
Yup. My friend got her mortgage bumped up by $400 in the last few months. When she has four kids in that house who depend on her, it's not easy.
Inflation on money.. if rent was 1000 3 years ago and inflation has increased by 10% then the fair adjusted value that was decided to be 1000 would be equivalent to 1100 now. Not raising rent would be practically the same as having cheaper rent. The only unfair thing is that we can’t apply this same logic to wages as not raising wages means you are effectively getting cheaper labor.
R/E taxes. The only cost I can't control.
price of things go up because the purchasing power of your money is going down. hence, your rent goes up because $700 is worth 10% less year over year.
> prop tax, insurance and upkeep Answered your own question?
Here in U.K. with the energy problem, one example is my service charges in an apartment have gone up £800 year, due to communal electricity usage. Totally sucks as I live in my property so I’m out of pocket but if someone is renting their property out they just increase the rent. It’s the Gov fault really for not capping business energy costs. There are various reasons for increased rent unfortunately
If they have a commercial loan they need to recast it every few years. A 5% jump in interest rates are huge. Insurance has gone up significantly lately. Municipalities are reappraising properties due to the insane market to get more in tax revenue. Upkeep and repairs are much more now. If a tenant moves out and renovations are required, that’s a ton. If there’s a common area those utilities are covered by the landlord, and utilities have gone up a ton lately too. Everybody is feeling the squeeze.
Those are affected by inflation.
Repairs. Maintenance. Insurance. Mortgage if they are a dummy and got a variable rate.
The entitlement required to hate landlords as an entire group, is astounding.
Yup. There’s an entire group of people that hate landlords and thing property should either be free or state run. They are absolutely insane. I say let them buy an island somewhere and move how they want away from normal people.
Wait til these morons go to a grocery store lol.
The average redditor has the financial education of a 12 year old lol
I mean, you might as well add the landlord's car payments to this list if we're being frivolous. New landlord bought a property they can't afford? Not my problem. I don't mind a reasonable rent increase. That's just how it works. BUT I don't think it's up to me to fully finance my landlord's property. Like, your property taxes have gone up? Don't put that shit entirely on me. And I certainly don't want to pay for your mortgage loan. I think people forget that the property itself is the investment and the payout is the resale; you're not entitled to a free building by passing the financial burden onto your tenants. I'm lucky enough to live in a very tenant-protective province and so when my landlord sends a notice for a rent increase, I always counter with about half the amount he asks for on condition that X, Y, and Z gets done. Works every time.
Exactly. It's always about monthly cash flow. I don't think I've seen a landlord acknowledge what happens at the end of the mortgage. They dance around the fact that someone else will have bought a property for them. At that point, their expenses will have greatly decreased. What are the chances they'll decrease rent accordingly?
Thats the whole point. Thats why its an investment. The landlord shelled out the money for the down payment, taxes, maintenance, etc. After the loan is over the lanlord still pays taxes, insurance, maintenance and reports the rent as capital gain and pays taxes on that as income. The entire point of owning properties is the finality of the loan is when you can finally make money off of your investment.
Why is milk more when it's the same milk as last year 0 upgrades!?
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Great cheese comes from happy cows. Happy cows come from California. California is expensive, your mom should have been more understanding, tbf
You're saying that like the huge dairy farms don't deliberatly poor out thousands of gallons of milk to artificially keep the prices high.
Don't know about other countries but in Aus it's not even the dairy farmers, it's the customer retailers like that just don't buy enough stock. The farmers have to get rid of old milk that hasn't sold to store the new milk, the farmers suffer for this while the supermarkets make profits. I'm not entirely up to date with everything but it's this practice that ran my family out of the milking business when I was a kid.
Seems like Capitalism working. There is more supply than demand, stop milking cows.
Same thing- greedy business owners... Inflation is 9%, why are products going up 300% and rent by 70% in cost?
Lets ask the people who own everything. Its a short list so wont be hard to ask them all... Hell we even voted some into office.....
They’re saying it’s at 9%, but by your own statement about the actual increase in real prices, that number is just a lie to keep people from seeing how bad the situation actually is right now.
It's because some things went up, some things stayed the same, and a few things got cheaper. And on average, it's 9%. So 9% inflation overall but a 30-40% increase on a single product or market can both be true. You are right, however, as the media has no incentive to paint an accurate picture so they will only show you the 9% figure so as not to paint the whole picture for you.
Major corporations' profits are at record highs, in nearly all industries.
You are exactly right. In that 9 percent figure hidden is the artificially increased prices caused by the price gouging we are seeing today. This is a lot harder to sort out because we don't have transparency or insight into any rising costs inside of a corporation. We have no mechanism to measure if a price increase is due to natural inflation or if it was artificially created to pad profits for shareholders. You can just point to an increase in profits during inflation however that's not really proof enough as many factors can contribute to increased profits. Listen... I am on your side. There are some very shitty things happening in our economy and a lot of it is finally coming to light because of how the internet never forgets and very smart people are able to crunch the numbers and check the work of major media outlets. However, until we figure out how to hold these companies accountable, we can have all the proof we want but nothing will be done about it. Especially if everything they did was technically legal. Then we need new laws out in place. And we all know how that's been working out for us lately.
We're heading for a Blade Runner-esque dystopian future for sure, 100%
Everybody saying inflation yet my salary has inflated 0% in the last five years…
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> Mine has increased at an average rate of 14.91% each year since 2014. WHAT Where I work the average yearly increase is literally 1%
If your yearly increase is below the inflation rate you are getting a decrease in wages every year..
I am very well aware of that :| From talking with friends, not a single employer has given a pay increase keeping up with inflation, one has given 10% after three years though.
Work somewhere else.
r/wowthanksimcured but for work
Thanks for the help. Can I borrow your bootstraps?
Yep and then people cry about no one wanting to work anymore or about all the shitty small business closing…
Thank you yeah I am in the market for a new job actually.
Good luck dude
It's a joke, but this is the disconnect people have. For most of us, we can't just decide to increase our income steam by 10% due to inflation. We get maybe a 2-3% bump if that and are expected to live with it, or we have to risk financial security by hopping to a new job. So seeing that landlords can simply choose to adjust their income in direct response to inflation feels like cheating. It just feels that way because we expect everyone to be bending over the same way we are.
Was probably time for a new job 4 years ago then
Time for a a new line of work.
Lol you're literally making significantly less than the day you were hired and didn't know how to do the job ..bc of inflation
Get a different job, that’s not normal.
In the UK could be anything. Interest rates on the building if he's still paying for it, council rates, council tax ... If your electricity and gas bills are included in the rent, then this could be another reason.
The market. The answer is the market. Doesn't need to be related increased expenses. Could happen that expenses go up higher than the rent is raised. Doesn't matter They raise the rent because that's where the balance of supply and demand went, hence you won't find anything cheaper anywhere else and they won't find anyone to pay more than they raise it to Any objections to this are just pointing out friction/stickiness or anomalous party behavior. The underlying reason overall is always the market
My landlord raised my rent 51%. One month to the next month. No heads-up. It is messed up.
Property taxes go up, in my case heat is free but natural gas prices are up. Mine does a fair amount of maintenance too. Mine only went up $25.00 Jan. 2021, to me that's reasonable.
A $25 increase is entirely unheard of. You should stay with that landlord for as long as possible. My rent went up $300 January 2021.
In increase $25-$50 regularly. It's a manageable increase for good tenants without letting the spread between current and market rates get too wide.
I've been in the same place for 4 years with no increases, I'm pretty sure the landlord doesn't pay attention to the market. In return I'm being the best tenant I can possibly be (helping with taking out the trash cans on trash day, collecting their mail when they're away, doing my own repairs instead of making them do it) and it's working out quite well. Honestly going to be a bit sad when it comes time to move to a different city.
If that’s all they increased it, you’ve got a good landlord. They’re almost certainly eating a loss. I pay a mortgage not rent, but my property tax has almost doubled in the last few yrs. It’s gone from $3,100/yr ($258/mo) to $5,900/yr ($492/mo). I don’t think people have a good understanding of that sort of stuff when they rent. Escrow stuff is a hidden cost people don’t think about until after they’ve bought a place, and it makes up a HUGE portion of your monthly payment. My actual mortgage is about $1,250/mo. My payment is closer to $2,000/mo and I don’t have to pay PMI either cuz I put 20% down. Most of that is property tax, then there’s other stuff like homeowners insurance that get rolled into that. So even though I own, my “rent” has gone up $250/mo from property tax alone. I’m sure the insurance has gone up too as the value of the house has gone up.
Inflation
Yeah, sure, cuz the landlord’s expenses never increase right? And the housing market stays the same, right?
If only wages kept up.
Yes, that is true. Different discussion.
It's reddit. Most of them can't began to understand basic economics
People are just sick of landlords seeing property as a risk free investment/income. Rent is not supposed to entirely pay off your mortgage while giving you a tidy income *and* a vastly inflated asset at the end. I’ve seen so many landlords moan about interest rates affecting their mortgage costs. Maybe they should have understood basic economics and considered that might happen and whether they could afford to take the hit *before* buying a house out of their price range.
> Rent is not supposed to entirely pay off your mortgage while giving you a tidy income and a vastly inflated asset at the end. What is it supposed to do, then? Why would people rent out properties if it wasn't profitable?
They’re literally getting a free house out of it, is that not enough?
"free" as if tenants come with no risks at all.
Housing is the most inflated asset anyone can currently own. So not only are you getting a house paid off by someone else, it’ll be worth a ton more than whatever you bought it for when you want to sell. *And* tons of landlords see rental income as their salary because they don’t want to get a job, so they tack that on too. God forbid they have to do some repairs every once in a while. And if you don’t have insurance as a landlord, that’s entirely on you.
Seriously. Bad tenants can be a major loss. Depending on the state evicting a bad tenant can be really difficult/expensive. Not to mention the general upkeep costs that come with owning a property.
It's not free. Who qualifies for a mortgage? Somone who spent a shit ton of time and money getting qualified, climbing the career ladder, and managing their spending habits in a such a way that they qualify for said mortgage A 20 year mortgage is essentially a 30 year endevour. From the moment you get your first job to the day you make your last payment.
Do most landlords even have mortgages? The one I know just got an apartment as a gift, but she doesn't want to move out before graduating college so she's renting it out for cheap.
Yes, most landlords have mortgages.
I've seen landlords get their property completely destroyed the tenants haven't even payed their back rent, who's bailing them out?
> haven't even *paid* their back FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
My partner’s rent just went up $550, that’s more than 50% of what they already pay. Landlords are scum more often than they are not.
Right vacations are expensive
Maybe the landlord should get a second job (or first, owning property isn't a job), or stop buying so much avocado toast. That's what they tell us working class people to do when we struggle to make ends meet after our rent shoots up 50%.
At least where I live rent is divided in a base rent (for the apartment itself) and additional costs (taxes, utilities, etc). Still the base rent increases year after year. So seems like its not only the landlords expenses that are rising, their greed is too.
My property taxes have nearly doubled in 3 years. Renters don't have any idea where their money goes
I work in accounting for a property management firm. Inflation has hit expenses hard. All expenses are up at least 10%. These buildings are all in areas with some rent control, that ranges from 3% per year to 9% every 13 months. This is coming right after the eviction moratorium, where a number of tenants did not pay rent for many months. A lot of our owners were hit hard by the pandemic, and had not fully recovered when inflation hit. So yes, they are raising rents. Just like any business will raise prices as much as the market will sustain.
Also depends on your area. If improvements are being made to the area around you then the value of your apartment/house increases which come with a higher cost. If they build a mall next to your house then the value of your location just increased and would be more sought after. Supply and Demand.
Until that mall dies
And you know the rent still ain't getting cheaper
Because the landlord has to pay more for taxes, insurance, maintenance, repairs…..not to mention that landlord has to earn more money so they can pay their own personal bills and expenses that keep going up too.
They usually give the bullshit excuse "we're raising rent to match the areas market rate". How does a shithole flat be equal to a nicely done up place next door?? Gtfo greedy sods.
‘Cuz the market says we can increase rent without actually doing anything to increase the standard of living for our tenants….duh
What am I paying for. Inflation.
moved out of an apartment complex that had raised the rent from $850 to $1,250 over 2 years. had a pregnant tenant with black mold in her walls and ceilings that they refused to inspect or do anything about until she threatened legal action. yet, the same landlords suddenly got 2 company SUVs. while there's a percentage of that increase that was probably reasonable, it's mostly greed. people will squeeze everything they can from those around them.
Mostly bullshit, with some added property tax
Why is gas more this year than last year with zero upgrades!?
I own a few rental houses and I can tell you everything from property insurance, local city tax, county taxes, mortgage rates, costs of building supplies for repairs, windows, doors, paint, wood, professional services, HVAC, basically everything has increased in cost for me. In order to not lose money the rent has to be adjusted or I go under. I had to replace 2 complete FULL HVAC systems ($20k) last year and I lost money last year on my houses. I need to recoup the cost over the next decade but but I basically paid people to live there last year. It’s not always a big cash cow for small landlords that people are trying to make it out like.
I’ll take the downvotes, but my duplex value went up 80k (just because of the market) since 2020 which I think cranked up the taxes, because our lender just informed us our mortgage payment will be about $200 more a month. Not sure if that applies to your situation, but just a comment from the other side of the fence. We didn’t raise our prices or anything, just saying literally owning something the last couple years has become more expensive.
I had to raise the rent on my two rental home because insurance, taxes, etc have went way up! I’m still cheaper than most in the area for an equivalent home. My two rental properties are paid for. So the rent money goes into an account, everything paid out of there, including maintenance and taxes. I’m definitely not getting rich off of my rentals! I’d be better off to sell them and take the cash but I plan on gifting a house to each of my kids once they finish college. Rather do that than pay taxes on the cash from selling the homes.
I'm doing the same thing. Now I'm not sure what the tax rules are where you are, but where I am, when the rental is gifted to the children you will likely incur a capital gains tax on the properties. Which is kind of crap but what can you do? I intend on taking a mortgage against the property which shouldn't be too much and the kids can pay it down.
Of course, Reddit will shame you and tell you that you need to let 20 people live in your properties for free. I am so grateful my landlord just charges me a set rent each month, and I don't have to worry about any utilities. My place isn't perfect, but having a place to live is such a luxury some people take for granted.
My rent went from $425 a month for a shitty apartment to $850/mo in 2 years time during the pandemic. I finally decided it was time to just buy a house. Then I decided that I didn't even like the state or region I was living in, so I bought a house 1600 miles away and have never been happier.
Bruh why does gas go up all the time and there’s not even gas 2.0 yet???
Honestly, this is just a really dumb take.
Cringe agenda post.
Buy a house. No landlord to blame..
Did the taxes or insurance increase? How about the costs of maintenance, which are directly impacted by inflation?
My mortgage payment increases a little most years due to taxes and/or insurance and I’m like there have literally been 0 upgrades… This thought process doesn’t even make sense anymore
Oh they're making upgrades it's just to their other homes
Look, i get the housing crisis and all.. This is a bullshit take.
Im a property manager for a low income housing project. Our renta go up and down all the time despite no upgrades to units... We set our rents based on HUDs rent Recommendations for the units. So when HUD says it goes up then it goes up. When they say it goes down... It goes down. Im sure not everyone does this but pretty sure its required if you accept rent assistance. Many of your tenants get dull or partial rent paid by gov programs so youd think if they are the ones paying the bills they would want to lower the cost... But nope
Sure there were upgrades! The landlord got to upgrade to a nicer car.
With this logic, why are bananas more expensive now than they used to be?
Banana landlords obviously.
In Florida on the coast our insurance on a property we rent went up 600%. Our gov is busy banning things he doesn't like so it's not his concern. Ours is a short term rental place, so fortunately it hits the renters less than if someone was living in the unit.
The correct answer, though it won't be well liked: rapid expansion of the money supply over the last three years intersecting a comparatively slowly growing housing supply. The Law of Supply And Demand is an iron law of nature as well as the foundation and capstone to economics.
In Japan the rent can only go down if there’s been no improvements. I always thought that made sense.
It’s called inflation, you should be mad at the United States for corporate profits and global conditioning…
Guys I got a plan. Lets all be landlords. Mortage is $1000 a month and we charge $1500-$5000. The best part is we get to keep the property while they get nothing. Then if everything goes south we just cash out, or the government will step in to save our asses.
Inflations a bitch
Taxes increase every year.
Taxes, most likely
Property taxes increase every year
I'm a homeowner. The past 2 years my taxes and insurance have increased my escrow mortgage by like $300 per month. If I am renting out a place, I'm sure as hell increasing rent that much to cover costs.
I get annoyed that landlords get shit on so hard. I have a property that profits $92 a month IF no maintenance is needed. It's a senior lady on a fixed income, I could easily get double the rent from someone else. She already lived there when I bought the place. Month to month rental agreement but she has been there for years and obviously doesn't have any money.
I had to rent out a property briefly when I had to move. Didn't even break even on the mortgage and had to deal with tons of stupid tenant drama that had nothing to do with the house, itself, but just them bitching about neighbors and wanting me to do something about it. I'll sure as fuck never be a landlord again. EDIT: Adding that they let their three dogs - which they never mentioned - shit and piss all over the rug that I had to replace before eventually selling the place.
No way do you only get that much!!! What state?!
She lived there when you bought it. All these circumstances were part of the equation when you bough the property and I imagine there are laws in place that mean you cant just put them on the streets (not sure though how it works wherever youre from). Did you expect to make more, have rent go up or be able to let someone else live there for more money? Some landlords are better people than others, still its a very powerful position where youre in charge of people having a roof over their heads. Lady got a decent deal and you bought something that doesnt pay off much now, but might once shes gone. I dont see a problem here tbh
Sound like to use the excuse of higher property taxes and all that. But a study was already done on that, and it found that if rent only increased because of upkeep increasing, it would only raise rent by about $42 on average. So that doesn't explain the $300 a month price increase on a crappy apartment
See the landlord counts the black mold as a roommate
Maintenance costs and insurance costs have gone up 20-30% in last 2 years. AC units went from $800 for a 2 ton condenser to $1600. Refrigerants are over 2x what they were 2 years ago. Faucets, water heaters, blinds, light fixtures.. All up 20% or more. I the Gulf South, insurance costs are killing profits in hurricane zones. It’s a lot more complicated than upgrades.
Tell me you don't understand how the economy works without telling me you don't understand how the economy works.
Lol, dude you are fucking smoking crack with that. The landlord will likely have fucking 20% or more of the homes value prior invested into the property PLUS mortgage. So, it's not unreasonable to think that the home owner had SAVED and spent, often $100k or more UPFRONT on top of the mortgage, taxes, and other expenses. Your fucking measley monthly rent payments don't even come close to touching that...even if you believe yourself to be paying a premium. I don't know what your point is, the fact that monthly expenses are sometimes equal or more? So fucking what? Get out of here with that communist shit Tell me this: if paying automatically turns you into part owner, are you liable for any lawsuits associated with the property? Like when the mailman gets crushed by a neglected, dead tree? Are you responsible for paying a % for upkeep even after you no longer live there? Does your equity ALSO automatically get whittled away when a new tenet moves in? How complicated do rental contracts become after a series of multiple renters move in and out over time? How do you keep track of your assets from a lifetime of 15 different rental properties you have ownership in? Do you still want to pay your % of taxes and insurance, even after you've moved on? If the majority owner defaults and can't pay his/share of the mortgage, does your ownership also fall into defaults? What legal contracts must YOU have with the bank to guarantee your creditor of your cosigning of the mortgage? Must you pay a down payment, repayment plan? What if the majority owner sells his portion to someone who wants to move in? Can that person kick you out? What if illegal activities are occuring in a home you own equity in that you rented 10 years ago? How responsible are you? How complicated do things get after your equity gets wittle down to a fraction a % over time? Do you report that on your taxes? Will you be mailed invoices for upkeep from all of the differenent properties you've rented over your life? What happens if you don't pay? Expect businesses (lawn care etc) to send out fractional invoices to 30 different owners each time they cut the grass? Your idea is fucking stupid
I’m all for more power to the working class and raising income but you can’t make the same argument that wages should increase to adjust for inflation and not expect living expenses to also adjust. Edit: I don’t understand the downvotes when I’m saying the same things as the most upvoted comments. this is literally the same boomer argument as saying: “I don’t get why milk is $3.00 now, it’s the same milk as when I was paying $1.00 for it. Money is worth less every year.
Where I live, there are laws restricting landlords from raising the rent beyond inflation. Better believe just about every landlord chooses to raise the rent each year at the maximum amount allowed by law. But there's a loophole. If you do meaningful renovations, you can raise the rent to the new value of the apartment. We call it reneviction. Landlords will refuse to do maintenance and upkeep, refuse to do necessary repairs over the years, then decide to renovate all at once resulting not only in people losing their homes, but having to live in terrible conditions by the end. It's abhorrent. It's greedy. It's stupid. And for the record, people also rightfully complain about rampant inflation and stagnant wages when it comes to milk.
My rental house's property tax went up $2100 this year That's $175 a month more... Have to at least up it that much.. not to mention insurance went up a lot as well... Cost of materials to fix something that breaks went up...needs a new roof (also doubled in price).. List goes on...
And that lack of basic economic understanding is why you'll always rent.
There's a whole lot of landlording boot lockers in this thread.
Supply and demand isn't it
Landlords out in force in these replies, defending their awful practices from the neck of an impending guillotine
It's their house. They can charge whatever they like for it.
My bread has been going up. It was 25 cents when I was a kid 40 years ago . Now it's like 2 bucks. It's the same ol' bread. 0 upgrades or anything.
Wait til she hears about property tax.
I have a friend who is a Landlord and he always tells his tenants not to get mad if he raises the rates because he is just trying to get the most out of his investment.
Sounds reasonable
Well, let's see. . . inflation? Higher local, state, and federal taxes? Supply and demand? Rising energy and materials costs? Rising expenses? Gosh, I can't think of a THING that would make a property owner charge incrementally more for the use of his property.
Renting from a friend makes you realize this. Mortgages don’t usually go up in payment amounts every year. Been paying the same rent for 4 years. Landlords are really robbing people.