Another unwarranted rent rise.

Bretrick

Bretrick

SF VIP
Location
Perth Western Australia
Picture this. Landlord owns over 100 units. Has done so for more than 50 years.
Easily bringing in over one million 800 thousand dollars a year.
Over 50 years, how much would have been accumulated?
Notice of rent rise each year. This time $100 a week.
Anyone out there tell me how the constant rent rises can be justified?
Remember, currently bringing in $1.8 million a year.
 
Marie5656 said:
Did you mean $100 a MONTH??? Seems high. Most mine is raises os about $30 -$40 a year.
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$100 a week is correct. My lease states rents will rise $50 a week, every 6 months.
The State government legislated that rents can only rise once every 12 months.
So, my rent will rise 2 x $50.
An extra $5200 a year.
 
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Two years ago my rent went from $707.00 to $1,140.00 and last year it went to $1,235.00.

The current rent is still below the market rate and a solid value for this area, the management company doesnā€™t seem to have any problems filling vacancies.

What the landlord chooses to charge is his business and what I choose to pay is my business, our only obligations to each other are outlined in the terms of our lease agreement. šŸ¤·ā€ā™€ļø
 
I know Florida had a control on rents that allows up to a 4% rise yearly.
If a renter is paying $1500 a month, their rent will rise by $60 this year.

Iā€™m not sure if they are still using this method or not.
 
Bretrick said:
Picture this. Landlord owns over 100 units. Has done so for more than 50 years.
Easily bringing in over one million 800 thousand dollars a year.
Over 50 years, how much would have been accumulated?
Notice of rent rise each year. This time $100 a week.
Anyone out there tell me how the constant rent rises can be justified?
Remember, currently bringing in $1.8 million a year.
Click to expand...

I thought you booked a flight to Melbourne in anticipation of moving there?

if that is the case, and this rent increase is attached to your current living arrangements, what does it matter? You will be leaving anyway, and wonā€™t have to deal with it.
 
I'd love to be rid of the responsibility of home ownership but when the sky is the limit for rent, I don't dare sell my home.

And there are other potential issues with renting. One property we rented was sold to a developer who tore down the complex to build an insurance company. Fortunately, we had bought a house and moved only months before that happened.
 
Alot of landlords are like homeowners and realtors in a hot market. They know there is higher demand for a lower to medium priced rents. Yes it's greed. Storage units are notorious for rent increases. Even a one percent increase makes the next increase that much more. In the end it's greed. But then again they couldn't charge it if people didn't pay it.

I can see if they were forced to do a lot of repairs because they do have to pay out of pocket as a business. But even then they could throw a onetime charge on the rent. I know people who had to scarf up $3k-15k for roof repairs after a hurricane.
 
For me renting has always been cheaper if you take into account the investment returns generated from the money that would be tied up in a home that is free and clear.

Also when renting there are no repairs, maintenance, upkeep, and no urge to remodel or improve.

I feel safer in a large apartment complex than I would in a single family home and Iā€™m not faced with all of the worries and stress that come from finding and dealing with repair and service people.

I just pay the same predictable amount each month during the term of the lease.

IMO it all comes down to doing what you are comfortable with, at some point the money isnā€™t as important as your comfort, enjoyment, etcā€¦
 
Imogene said:
I thought you booked a flight to Melbourne in anticipation of moving there?

if that is the case, and this rent increase is attached to your current living arrangements, what does it matter? You will be leaving anyway, and wonā€™t have to deal with it.
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The reason I am leaving is because of the constant increase in rent. At the current rate of increase, this small, 1 bedroom flat could go for more than $3000 a month in 5 years time.
Making a comment about the parlous state of rentals in Australia.
 
Bretrick said:
Picture this. Landlord owns over 100 units. Has done so for more than 50 years.
Easily bringing in over one million 800 thousand dollars a year.
Over 50 years, how much would have been accumulated?
Notice of rent rise each year. This time $100 a week.
Anyone out there tell me how the constant rent rises can be justified?
Remember, currently bringing in $1.8 million a year.
Click to expand...
what ???? $100 a week? that's extortion... where does he expect people to find that kind of rise in rent...is he hoping to price you all out, is he hoping to sell ?....

Do you have rent protection over there ?
 
Aunt Bea said:
Two years ago my rent went from $707.00 to $1,140.00 and last year it went to $1,235.00.

The current rent is still below the market rate and a solid value for this area, the management company doesnā€™t seem to have any problems filling vacancies.

What the landlord chooses to charge is his business and what I choose to pay is my business, our only obligations to each other are outlined in the terms of our lease agreement. šŸ¤·ā€ā™€ļø
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...so in just 2 years your rent has almost doubled ?...Wow!!
 
hollydolly said:
what ???? $100 a week? that's extortion... where does he expect people to find that kind of rise in rent...is he hoping to price you all out, is he hoping to sell ?....

Do you have rent protection over there ?
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No rent protection. Some landlords are raising rents $250 - $300 a week.
If they cannot afford the rise, then leave. There are always people who will take their place.
Australia's homeless problem is skyrocketing because of greed.
 
MACKTEXAS said:
Four states currently have caps on rent increases: California, Oregon, Washington, and New York. But, it may cost more to live in at least 2 of those states anyway.
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However- the last I knew (not too long ago), rent control in California only applied to some specific locations.. and in New York, only specific buildings and/or people who lived there for a long period of time.
 
Sunkist said:
However- the last I knew (not too long ago), rent control in California only applied to some specific locations.. and in New York, only specific buildings and/or people who lived there for a long period of time.
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Okay - I haven't read the laws or ordinances, so I didn't know the specifics. I would never live in any of those states myself anyway because the general cost of living would be higher than it is in Texas, regardless of the rent.
 
When I got divorced five years ago, I immediately bought a condo after we sold the house because rents locally are skyrocketing. I knew Iā€™d only be able to afford to stay in this town if I could lock in a reasonable mortgage and HOA fee. I pay half of what rent would be locally.
 
I feel for you, @Bretrick. My rent has gone up every year since I moved into my new place. I'm now paying nearly $1,200/monthā€”for a studio apartment, in North Dakota. It's ridiculous. My state has no cap on rent increases.

I've been tempted to buy a small house. I've seen some for which the monthly mortgage would be about half my rent, or even less. However, I worry about all the maintenace and upkeep costs. My biggest concern, though, is that I doubt I'd qualify for a mortgage. My credit score is quite high, but I have a lot of debt. So that (inability to qualify for financing because of current debt) disqualifies me for something like a condo.

$100/week is outrageous. I'm so sorry you're facing such a high increase. My stomach is knotting up just thinking about it.
 
Bretrick said:
Picture this. Landlord owns over 100 units. Has done so for more than 50 years.
Easily bringing in over one million 800 thousand dollars a year.
Over 50 years, how much would have been accumulated?
Notice of rent rise each year. This time $100 a week.
Anyone out there tell me how the constant rent rises can be justified?
Remember, currently bringing in $1.8 million a year.
Click to expand...
Without knowing the expenses it's hard to know if it is justified or not. If the building(s) are more than 50 years old they might be requiring some expensive maintenance. If there are elevators, those have lifespans and have become very expensive.

Now that I live in a condo and see the reports on the expenses, it is very surprising to see the costs, seems like everything, such as roof, building facade, elevators, underground garage cement stuff, storage area 'mold remediation' (before my time), each cost a million dollars! And then there are the ongoing costs of the staff, the lights/heat in the hallways/lobby/activity room, the regular maintenance (paint, plumbing repairs, grounds maintenance, etc), the pointless obsession (IMO) of re-decorating the lobby (ok, once in 20 years, but I liked the old quaint decor better than the modern stuff they changed to) - it all adds up.

But, even with all the expenses and the community features (swimming pools, clubhouses, etc), it only costs about half as much monthly as it would if I rented. So I'd guess for-profit rental housing must be swimming in money.

I wish it was easier and more common for people to live in housing co-ops because those are significantly cheaper to live in, but there don't seem to be very many of those compared to regular rental places.
 
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