Annual increase of rent

Discussion in 'Landlord & Rental Property Questions' started by Corzhens, Sep 11, 2015.

  1. Sunflogun

    Sunflogun Well-Known Member

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    The landlords must choose if they want to get greedy and get more money or just stay with good loyal tenants, it's a matter of choice.
     
  2. jondjacob

    jondjacob Well-Known Member

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    Wow, 20% actually seems very exorbitant to me. In Massachusetts, generally that wouldn't happen, but we do have no laws governing it. The only rules force any increase to be made at the end of the lease agreement.
     
  3. Penny

    Penny Well-Known Member

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    If they can increase the rent and find a tenant why wouldn't they. Being a landlord is a business.

    I am surprised that the government limits when they can increase their rent and by how much. I would assume that every time a lease came to an end the landlord could offer a new one at whatever was market value at the time.
     
  4. Sunflogun

    Sunflogun Well-Known Member

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    That is a fact, if someone is willing to pay why not raise it? At the same time, do we really want to be changing tenants all the time? I don't think that is something safe.
     
  5. pwarbi

    pwarbi Senior Investor

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    If you've got a tenant in a property who you trust and hasn't caused you any problems, I think raising the rent unduly or without consulting them first could be an issue.

    Just because there might be someone else willing to move in and pay the higher rent, I'd take into consideration the tenant you've already got before making any rash decisions.
     
  6. missbishi

    missbishi Well-Known Member

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    It's unfair and immoral to raise rent any more than is strictly necessary. I wouldn't like it being done to me so I certainly won't do it to anyone else. In any case, my tenants all receive rent assistance (what is called "Housing Benefit" here in the UK) which means that the payments are made directly to me from the local council. So I'm already getting guaranteed rental payments, I don't want to lose that by pricing my tenants out.
     
  7. Penny

    Penny Well-Known Member

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    If it is immoral to adjust rent regularly to reflect market rates, then it is immoral to do the same for stocks, food, clothing, or telephones. And yet we do.

    Not all rental is government supported for impoverished people. Sometimes of the renter and the landlord, the renter is the wealthier one. As an overall sector it is a business like any other. Special social responsibility applies only to very specific cases as with medicine or education.

    I it like saying because poor people need to be able to afford bread, you should not be able to charge $3 for a Starbucks muffin. These are simply different things.
     
  8. nytegeek

    nytegeek Well-Known Member

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    If property taxes increase, or the cost of maintaining the property increases so should the rent. Doing it just as a money grab isn't wise but doing ti because of increasing costs is more than fair.
     
  9. Corzhens

    Corzhens Senior Investor

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    That is actually the rationale behind the allowed annual rent increase according to the author of the law. However, market prices don't increase by 10% every year and if the rent is increased by that much, I guess it is not really immoral but more of uneconomical. There are cases where a tenant has to leave because the rent became unaffordable. And then the unit is left vacant for a long time. Isn't that ironic on the part of the landlord? Increasing the rent but no tenant.
     
  10. Glcameron

    Glcameron Well-Known Member

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    I think that when you going to the whole entire factor of discussing increasing someone's read it really has to go into consideration to what's actually going to the rent a self. If I'm a landlord number and talk to someone and I'm up including all of the utilities and a few different amenities I wouldn't do so beyond a 5% rate each year because I wouldn't want their rent to exceed the three times the amount required in order for them to be able to qualify for that location in the first place. You wouldn't want to get to the whole entire point where you are exceeding in the increased amount of rent to what your residents are able to actually pay. If you go to that factor then what you're looking at is the constant change of tenants because you're trying to increase your rent to meet or exceed a certain level standard that you may perhaps have.What I like is to be able to do is secure the same tenants but being able to discuss with with them the types of increases that would actually work better for them.
     

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