 raising rent (by mary [CA]) Mar 7, 2017 12:26 PM
 raising rent (by NE [PA]) Mar 7, 2017 12:29 PM
raising rent (by Jim in O C [CA]) Mar 7, 2017 1:02 PM
raising rent (by Robert,Ontario,Can [ON]) Mar 7, 2017 1:25 PM
raising rent (by BRAD 20,000 [IN]) Mar 7, 2017 2:11 PM
raising rent (by Stephen [ON]) Mar 7, 2017 2:49 PM
raising rent (by Robert,Ontario,Can [ON]) Mar 7, 2017 4:18 PM
raising rent (by mary [CA]) Mar 8, 2017 12:39 PM
raising rent (by mary [CA]) Posted on: Mar 7, 2017 12:26 PM
Message:
State Specific Question About: CALIFORNIA (CA)
hello to all =) ....
how much rent should i increase my tenant who is renting single home?... yet rents are stable, no going up in general....
rents in the area are not high, like for example in the bay area. tenant has always paid on time. has been living there for 18 months. no problems whatsoever, so far. i did a search to see what rents are going for and they are still about the same to where my tenant is paying right now. i would hate the increase the rent, and for them to move out, and end up with a lousy tenant over a few dollars more... not worth it to me.
what would you all do?
thank you in advance for your time and input!
=) mary
--73.70.xxx.xxx |
raising rent (by NE [PA]) Posted on: Mar 7, 2017 12:29 PM
Message:
If they're at market, let em ride.
The greedy become the needy. --174.201.xx.xx |
raising rent (by Jim in O C [CA]) Posted on: Mar 7, 2017 1:02 PM
Message:
Wait till next year and evaluate the situation. I increase my rents about 2 1/2% to cover taxes and insurance. I have Excellent tenants and I'm not greedy. --70.197.xx.xxx |
raising rent (by Robert,Ontario,Can [ON]) Posted on: Mar 7, 2017 1:25 PM
Message:
Increase rent to cover annual increases in operating costs. Most stay in range of 2 to 3 per cent. Even though receiving more rent the net operating income stays the same as this cover increases in operating costs. Water, sewage charges, property taxes, building materials along major capital expenditures like replacing a roof, windows or a furnace. When something breaks down one needs to have the funds to cover repairs. Look into internet sites along with newspaper ads to see the range what a comparable rental unit is charging. --74.220.xxx.xxx |
raising rent (by BRAD 20,000 [IN]) Posted on: Mar 7, 2017 2:11 PM
Message:
Mary,
My lease is clear: automatic renews with Cost of Living Increase of 2.9%.
But I don't' HAVE TO increase it if I don't want to.
I would tell them the rent SHOULD go up to $XXX but your will give them a break at only $XXX. (a small "nuisance" amount)
I learned a hard lesson - ALWAYS increase the rent, even if just a tiny amount. Over time those tiny amounts really add up.
BRAD
--73.146.xxx.xxx |
raising rent (by Stephen [ON]) Posted on: Mar 7, 2017 2:49 PM
Message:
Brad is right about small increases adding up, it is an important observation. Here we have rent control for all pre 1991 units and this year the allowable rent increase is just 1.5%. Rent increases are of the order of $18 or so. But if you increase every year by the maximum then compounding takes over. You are going to fall behind market but maybe not too much behind. Most tenancies last a couple of years at most so in practice rent control mostly does not have as much effect as you might think. Truly long term tenants can be a killer however.
The research shows that rent control decreases the vacancy rate by deterring investment in rental housing. Right now vacancy rates in Toronto are 1% and likely lower for decent units. Tenant's groups are decrying the lack of housing but do not join the dots and see that depressed returns due to rent control and burdensome regulation deter investment and so reduce supply, thus driving down the vacancy rate and tenant's rental options.Capital is mobile.
They make it harder to make money here but you can do it if you try. There are a lot of poorly managed corporate rental buildings and a lot of Mom and Pop landlords who don't know what they are doing. One aspect of which is failing to increase rent every year while you can. Under rent control if you miss taking a rent increase in one year that increase is lost forever. So the sensible thing to do is increase to the full amount every year without exception, and get tenants used to this.
At the end of the day rent control may limit increases for a while but it is not without its compensations. There are a lot fewer rental units and landlords to compete with due to rent control, red tape and regrettably a broken rent dispute mechanism. The answer to the latter item is ultra screening of course. Only the safest tenants are let into the units. With the falling vacancy rate my applicant rejection rate is way up. I am becoming very choosy. --64.231.xxx.xxx |
raising rent (by Robert,Ontario,Can [ON]) Posted on: Mar 7, 2017 4:18 PM
Message:
Rent control was never designed to control rent but bankrupt the private sector rental housing providers as a form of expropriation. The government owned rental units in Ontario are exempt from rent control as the government treats rent control like a form of poison. Here a lot of houses which once upon a time were rentals are being sold then becoming owner occupied as many have found it too difficult. With the provincial deficient higher per person then in California there is not funds available to build the non-profit rental housing utopia. There is now a two tier rent dispute process where the government agencies complained it was too difficult to evict tenants as they have terms like housing fees not rent. Tenants get evicted from the government owned rental units easily. Two sets of paperwork shows the bias against private sector rental housing providers. Ontario is headed for a rental housing crisis like Los Angeles as policies are similar. If they enforced all the proper building and fire codes many of the illegal ramshackle apartments in houses and illegal basement apartments would be closed down then there would be a extreme shortage of rental housing. Hopefully on June 18th. 2018 they voted out the Fiberals. Rental housing is more then fringe groups who happen to own their own houses as a result of generous government municipal funding. --74.220.xxx.xxx |
raising rent (by mary [CA]) Posted on: Mar 8, 2017 12:39 PM
Message:
thank you all who have replied. i will increase the rent this summer by a bit. one thing going for me is that it is a desirable town, even though the rental market is not "hot" like say... the bay area.
thanks! --73.70.xxx.xxx |
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