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Anyone else getting their rent raised this year?
- Thread starter Mondai
- Start date
John Marston
GAF's very own treasure goblin
My landlord usually only raises my rent 10 to 15$ and even skipped the raise a couple of times.
He's an old school portuguese old man who actually cares about his tennants.
He's an old school portuguese old man who actually cares about his tennants.
ssringo
Member
Yes, when my renewal comes around it'll go up by (iirc) 5%. But I've been living here for about 15 years and got in when the rent was fairly low. At this point I'm paying about $250 less than all the newer renters so I ain't complaining. Having a good, consistent tenant is worth it for the property managers.
Meicyn
Gold Member
This is very much true. As a landlord, one of my primary rules for my property manager is that rent must not go up for existing tenants. My taxes and insurance generally go up every year, but having grown up poor, I understand the struggle. Never forget your roots.
Treat your tenants like a disposable resource, and they’ll be inclined to treat your property like a disposable resource in turn.
Fbh
Member
Yup went up, but thankfully only around 5%.
Which is still really nice since I've only got a leak in one of the rooms for 2 fucking months.
But apparently my very rigid schedule of "you can come fix it ANY FUCKING DAY at ANY FUCKING HOUR as long as you let me know a couple of days in advance to get things sorted out at work" is not flexible enough to get it fixed in a timely manner.
Which is still really nice since I've only got a leak in one of the rooms for 2 fucking months.
But apparently my very rigid schedule of "you can come fix it ANY FUCKING DAY at ANY FUCKING HOUR as long as you let me know a couple of days in advance to get things sorted out at work" is not flexible enough to get it fixed in a timely manner.
willothedog
Member
my parents wouldn't dare 
Krappadizzle
Member
My property taxes have gone up every year for the last 3 years. Property values are through the roof. I can't wait for this crash to finally happen and we start a recovery process. I honest to god don't know how any young adult starting off in life is gonna survive if this keeps up too much longer. I'm thankful I bought my house when I did.
TransTrender
Gold Member
During the period of my life when I was a renter, about 10 years, shit would go up everywhere every year like clockwork. They weren't small increases either. California sucks.
Insane Metal
Member
In my country it goes up every year by about 10-15%. Brazil.
JayK47
Member
You are supposed to be so happy in owning nothing that you wouldn't notice the increase.
Back when I did rent like a million years ago, it was customary to receive a notice at the end of the year (Merry Fucking Christmas) informing me of the yearly increase. Same excuse every year. Something about costs going up, blah blah blah.
Back when I did rent like a million years ago, it was customary to receive a notice at the end of the year (Merry Fucking Christmas) informing me of the yearly increase. Same excuse every year. Something about costs going up, blah blah blah.
Miyazaki’s Slave
Gold Member
Have been getting slammed with "property value increases" in my area. It has increased over 300% since 2016. Most of it is education taxes (around $7500 a year for elementary and high schools alone). I don't have any kids personally and don't get me wrong, the schools here are great and I don't live around a bunch of morons who cannot read....but GD property tax is crushing me.
SiahWester
Member
My property taxes are increasing substantially.
I’ve been an owner for almost 9 years. Property taxes have definitely gone up but I also refinanced at rock bottom so I’m actually paying less now than I was 9 years ago while paying more towards the principal on my mortgage and my property is worth twice as much as I paid. I’m also making a lot more money now and able to save a ton of money and am saving cash until I can pay the balance in full in about five more years. At least that’s the game plan. I don’t envy anyone dealing with rent these days.
navii
My fantasy is that my girlfriend was actually a young high school girl.
Speak to an Australian renter, it will make you feel better. My landlord bumbped the price by $180 (probs about $130US) per week (for a largeish studio apartment). So I moved out, and to get the new place in front of everyone who was frothing at the mouth I had to offer $70 extra per week on top of what was already a ridiculous asking price.
Rents jump 33% in two years as crisis deepens - realestate.com.au
A typical renter in a capital city is paying $150 more in rent each week compared to two years ago, a new report has found.
www.realestate.com.au
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StreetsofBeige
Gold Member
I hiked up my tenant's rent $50. I could had done $100-150 as per my property management's reco. But i didn't give a shit. $50 is good enough. Went from $2400 to $2450.
For you guys who dont understand mortgages landlords have to carry, the mortgage rates are about 6% right now. Before everything spiked, a mortgage could be had for 2% assuming you got good credit score. My personal mortgage for my home bottomed out at 1.2%, but had trended at around 2.0% years as I was on a variable.
Just to give you an idea on mortgage payments, assume a landlord has a $300,000 mortgage at 25 year amortization and bi-weekly payments (two payments per month). I used a bank's online mortgage calculator.
1.2% rate = $580 per payment ($1,160 per month)
2.0% rate = $650 per payment ($1,300 per month)
6.0% rate = $960 per payment ($1,920 per month)
Add in property tax which might be approx. $5,000/yr for a $500,000 home in a 1% property tax city (about $400/mth on avg)
Add in condo maintenance fees if an apartment or condo which can be ballparked at let's say $500/mth for a modest apartment/ondo. Bigger older condos can be $1,000/mth as building management has more repairs to do. But for sake of argument let's say $500.
Add in utility bills for any utility the landlord covers.
And this doesn't cover any major repairs out of pocket. Or god awful condo board special assessment fees which can be $1,000s if you get burned. I never got burned with an assessment fee.
So add it up and a landlord with a $300,000 mortgage on a $500,000 assessed value home probably has a current monthly outlay budget at current mortgage rates around $2,500 for a freehold home or closer to $3,000 if a condo. But if he locked in a good mortgage rate for years then you can easily knock off $500 until it's renewal time. In Canada, you do mortgages by timed terms you pick. A lot of people do 5 year terms. So you got to renew it after 5 years at the new rates unless you lock in a rate renewing early.
People's rents were probably pretty low, stable or didn't increase fast before covid because interest/mortgage rates were low and stable ever since the global crisis in 2008 nailed everything. it was a solid 10+ years of low rates for anything from mortgages to car loans. Inflation skyrocketed everything because people were going apeshit spending their current money and government covid handouts hoarding shit. So all the suppliers selling everything from cars to bags of sugar jacked up prices. That's why rates and rents all shot up. No landlord is going to jack up someone's rent $500 just for the hell of it unless his mortgage renewal got kicked in the stomach. That's why for those 10+ years of low rates if you are a renter I doubt your landlord was trying to increase rent $500 every year. His mortgage payments were low so he didnt give a shit if his rent is low too.
The general rule of thumb for a landlord is to hope his monthly rent covers everything. So the goal is to at least breakeven so you arent in a negative cashflow situation. If my monthly outflow is $2,500, last thing I want is my inflow to be $2,000. And that assumes the tenant pays. I had my share of deadbeats who didn't pay me. Lost out on rents and lawyer costs and never got the money back. Not fun when a jackass literally moves out middle of the night asap even leaving junk behind and stops payment. Lost about $5,000 in rent and another couple grand in lawyer costs trying to chase them. Gave up. Lost around $7,000. Every lawyer will tell a landlord even if it's a guaranteed win in tenant court, it can still be a losing battle because if they dont have the money to pay or hold out forever, you're never going to get anyway. So just cut your losses and move on. So just work asap to find another tenant since every empty place is more losses per month. You cant find a tenant instantly. And just because a tenant doesn't pay you cant just change the lock and throw everything in the garbage that night until it's approved you can do that.
For you guys who dont understand mortgages landlords have to carry, the mortgage rates are about 6% right now. Before everything spiked, a mortgage could be had for 2% assuming you got good credit score. My personal mortgage for my home bottomed out at 1.2%, but had trended at around 2.0% years as I was on a variable.
Just to give you an idea on mortgage payments, assume a landlord has a $300,000 mortgage at 25 year amortization and bi-weekly payments (two payments per month). I used a bank's online mortgage calculator.
1.2% rate = $580 per payment ($1,160 per month)
2.0% rate = $650 per payment ($1,300 per month)
6.0% rate = $960 per payment ($1,920 per month)
Add in property tax which might be approx. $5,000/yr for a $500,000 home in a 1% property tax city (about $400/mth on avg)
Add in condo maintenance fees if an apartment or condo which can be ballparked at let's say $500/mth for a modest apartment/ondo. Bigger older condos can be $1,000/mth as building management has more repairs to do. But for sake of argument let's say $500.
Add in utility bills for any utility the landlord covers.
And this doesn't cover any major repairs out of pocket. Or god awful condo board special assessment fees which can be $1,000s if you get burned. I never got burned with an assessment fee.
So add it up and a landlord with a $300,000 mortgage on a $500,000 assessed value home probably has a current monthly outlay budget at current mortgage rates around $2,500 for a freehold home or closer to $3,000 if a condo. But if he locked in a good mortgage rate for years then you can easily knock off $500 until it's renewal time. In Canada, you do mortgages by timed terms you pick. A lot of people do 5 year terms. So you got to renew it after 5 years at the new rates unless you lock in a rate renewing early.
People's rents were probably pretty low, stable or didn't increase fast before covid because interest/mortgage rates were low and stable ever since the global crisis in 2008 nailed everything. it was a solid 10+ years of low rates for anything from mortgages to car loans. Inflation skyrocketed everything because people were going apeshit spending their current money and government covid handouts hoarding shit. So all the suppliers selling everything from cars to bags of sugar jacked up prices. That's why rates and rents all shot up. No landlord is going to jack up someone's rent $500 just for the hell of it unless his mortgage renewal got kicked in the stomach. That's why for those 10+ years of low rates if you are a renter I doubt your landlord was trying to increase rent $500 every year. His mortgage payments were low so he didnt give a shit if his rent is low too.
The general rule of thumb for a landlord is to hope his monthly rent covers everything. So the goal is to at least breakeven so you arent in a negative cashflow situation. If my monthly outflow is $2,500, last thing I want is my inflow to be $2,000. And that assumes the tenant pays. I had my share of deadbeats who didn't pay me. Lost out on rents and lawyer costs and never got the money back. Not fun when a jackass literally moves out middle of the night asap even leaving junk behind and stops payment. Lost about $5,000 in rent and another couple grand in lawyer costs trying to chase them. Gave up. Lost around $7,000. Every lawyer will tell a landlord even if it's a guaranteed win in tenant court, it can still be a losing battle because if they dont have the money to pay or hold out forever, you're never going to get anyway. So just cut your losses and move on. So just work asap to find another tenant since every empty place is more losses per month. You cant find a tenant instantly. And just because a tenant doesn't pay you cant just change the lock and throw everything in the garbage that night until it's approved you can do that.
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ResurrectedContrarian
Suffers with mild autism
Same, although we certainly feel the increasing inflationary effects hard on things like the family grocery budget.
StreetsofBeige
Gold Member
Good call. Anyone who locked in a good rate in 2021 made out like bandits! I know people who locked in 1.8% to 2.0% rates. One guy did a 10 year lock for 2.4%! Fuck, I didn't know you could even lock in a mortgage for 10 years as every person (including me) seems to max out at 5. My buddy is like.... ya there are 10 year ones. You just got to ask because not all places will promote or post there are 10 year deals out there.
NeoIkaruGAF
Gold Member
Yes. But it’d been the same for almost 6 years, so I consider myself lucky.
Snaggletooth
Member
Just paid my first rent on the new rate today. $190 AU extra PCM.
DKehoe
Member
I’m on a 15 year mortgage that’s locked in at a decent rate for 10 years. After 5 I can change for a different one if I want. I’m hoping to have it paid off soon though before any of that. It’s potentially possible at the end of this year but I might give it a bit longer so I’m not blowing through so much of my savings in case anything else pops up that I need money for. I feel very lucky to have gotten the mortgage in place before the interest rates blew up. It’s become really difficult for a lot of people to get that first step on the property ladder and I feel terrible for those people who saved for years to finally do it but can no longer afford their mortgages because of the increases.
Spyxos
Gold Member
Pejo
Member
I'm about $1300 under the average rent in my area for a 2 bedroom duplex (in CA) that allows pets, has a garage and a wood slat (privacy) fenced back yard in a beach adjacent small town. My landlady hasn't raised rent a single time in the 5 years I've been here. I'm not moving unless I hit the lottery or can suddenly afford the mortgage and taxes on a California home.
fran.fernandez
Member
Buy, aggressive saving, pay loan asap .
Maiden Voyage
Gold™ Member
No rent or mortgage here but my property taxes went up 20%. Makes me incredibly happy that we are only dealing with the taxes.
nush
Member
LOL 'Murica.
Thaedolus
Gold Member
German Hops
GAF's Nicest Lunch Thief
Buy a cheap home from Amazon, gents;
killatopak
Member
Be me.
Rent to own house.
Owner’s relatives actually owns the deed
Relatives can’t find the deed
Halfway through the payment I said show me the deed
No deed. I said no deed, no rent.
Free rent for 10 years and going
Rent to own house.
Owner’s relatives actually owns the deed
Relatives can’t find the deed
Halfway through the payment I said show me the deed
No deed. I said no deed, no rent.
Free rent for 10 years and going
Dirk Benedict
Gold Member
We're about to pay off the house, then it's just taxes... there's too many taxes, man!
I see it's Amatuer hour, here on The NeoGAF.Why rent if you can sleep outside.
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Grildon Tundy
Gold Member
This is cool as hell. I would be concerned someone could Kool-Aid Man straight through those thin walls, though.
nush
Member
10 years, check your countries squatting laws. You might be able to claim it for free.
killatopak
Member
It takes 30 years for me to claim it.
edit: I keep editing. I forgot how long I lived here already lol. Anyway, it’ll take more than 10 years more for me to officially own the land.
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Thaedolus
Gold Member
Whereabouts do you live (nothing specific)? My county has a website where you can look up the name of the deed holder for any parcel. Turns out the folks across the street that never wave, keep their curtains closed and have a dozen cameras outside are trust fund babies!
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killatopak
Member
Philippines. We have the same IIRC.
I think the issue here is that there are land disputes among the relatives of the owner. They hate each other lol. And it is a big ass family so there multiple disputes and sabotages. They own whole swathes of land that are now multiple subdivisions. So I dunno if they really can’t find the deed or are just lying to each other. The guy we initially paid money to is essentially shielding us from the supposed real owner. In any case, I have no problem waiting. It’s been long enough that I am already the godfather of his grandchildren.
nush
Member
You're 30% of the way there!
Boaty McBoatface
Member
In Sydney my rent went up from $380 to an astonishing $570 a week - after they evicted me off course. I'm pretty sure it's illegal to do that but I was leaving the country anyway so wasn't worth the fight.
Mihos
Gold Member
Same for me, my house is paid off, but taxes are way up... luckily insurance is way down