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MaybeADumbass t1_j5urkuq wrote

Reply to comment by blondiebell in New tenants are getting screwed by blondiebell

> There is no moral justification for a massive % increase in profits year after year because you arbitrarily increase the rent just because you can.

Every single bit of maintenance for a property has gotten significantly more expensive over the past few years, though. Every contractor you might hire for repairs is booked solid for and costs more than they did two years ago, and every single material has gone up in price. That carpet that might have cost $1500 to replace three years ago will now cost closer to $3000. If your landlord plans to renovate or repair any units between tenants, now, it'll cost significantly more money than before. It only makes sense to raise rent in that situation.

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weavs13 t1_j5v9toh wrote

If they are improving them that fine. But how many rentals is that happening in? My former landlord slapped new paint on the walls and asked $500 more per month.

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blondiebell OP t1_j5uwydm wrote

We completely agree. Costs have gone up and it is okay for prices to reflect that, However there is importantance in separating cost, revenue, and profit.

Just to spin a hypothetical here are some numbers: I am renting a unit for $100, so I made $100 in revenue. I then paid $60 in upkeep costs so my profit is only $40, but that pays my bills and I'm happy. Next year I find out my costs are going to be $80, I dont want to only make $20 profit so I raise my rent to $120.

That whole situation is fine so long as that $40 isnt my sole income and if the house burns to the ground or the tenant dies, I dont lose everything.

The issue is when the same scenario plays out like this: The next year I find out my costs are going up to $100, so I plan to raise rent to $140, but before i do i find out my friend down the street just built a new unit and rented it for $300. I figure since someone rented that apartment at that price i can ask that price from my renter so i do. They agree to it because their kid just started school and they want to stay in that school district. I bring in $300 revenue, costs are $100, I make $200 profit.

The next year it's the same. Cost increases $20 but another friend has built a new unit and is charging $500. I figure I'll try again since someone rented in the area for that price. My current renter can't afford it and moves out. I lower my price to $450 and get someone who couldn't afford $500, but can just squeeze by at $450. I bring in $450 revenue, costs are $120, I make $330 profit.

I am now an asshole....

Just because I could and someone did pay it I raised my rent enormously and made huge increases in profit.

That's just business, we agree on that, but that was and is someone's home. Legally, I shouldn't be allowed to do that. I priced a family out of their home, I'm making it so it's harder for the current people to save for their own future. If all my friends are doing the same thing we are collectively pricing whole communities out. If the whole country is doing it we are ruining people's chances to have stable housing.

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shepherd_lover t1_j5whiy4 wrote

Thanks for laying it out like this. Makes total sense. I often grapple with the differing perspectives of both sides (landlord and tenant) and this was helpful.

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blondiebell OP t1_j5wid7o wrote

Sure thing. Its undeniably complicated, I dont expect anyone to just get it, so do let me know if you have any specific questions I can try to clarify :)

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NovelAuntieGin t1_j5z3o9f wrote

I think that most property owners just can't fathom the concept that most renters don't really gaf about new carpet.

Maybe YOU or your wife or your side piece can't imagine living with just... renting a carpet cleaner from Save-A-Lot for $35 dollars for the home where you live.

But the people who are paying off your mortgage, taxes, insurance, ++? They sacrifice something, embarrass their kids, AND go hungry a day just to rent a carpet cleaner from Save-A-Lot so they can hope and wish to get back that deposit that you already spent on whatever you think will impress somebody.

Just remember that those toddlers of hers will be the ones changing your diapers when you're old and incontinent.

Fuck them at your own peril !

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