Capitalist society

[Christ_empowered]

That's like when I lived in this decent apt. 1st year at college. 400/month for me, 600/month for my roommate (I had 2 tiny rooms; she had one big, elegant room). Not bad at that time. Now, its over 2000/month for the same place!

Crazy, I tell you...crazy.

Has your area been "gentrifying" lately?

 

[Kathi]

That's like when I lived in this decent apt. 1st year at college. 400/month for me, 600/month for my roommate (I had 2 tiny rooms; she had one big, elegant room). Not bad at that time. Now, its over 2000/month for the same place!

Crazy, I tell you...crazy.

Has your area been "gentrifying" lately?

No,but the population has tripled in 2 years.Renting manufactured homes used to be decent rent now that is going sky high as well.It seems like people are taking any old shack on their property and renting it out for a fortune.If people would not pay that rent then they would have to bring it down.

 

[WIP]

There are reasons beyond greed that could affect rental costs.

Property value. In order to purchase the property the owner had to expend a significant amount of money. This most likely includes a mortgage with interest. He certainly can’t be expected to rent it out at a loss.

Property taxes. Aside from the purchase price and/or mortgage costs, there are the property taxes to consider and in many or maybe most situations, income property may include a higher property tax base as if property taxes aren’t high enough already.

Maintenance. Maintaining a home can be expensive. The owner needs to consider the cost of roofing, siding, repainting, flooring, and other general repairs and upgrades. I am a former landlord and in my case I lived nearly 200 miles from the rental property so when things required repair and I got the call from my tenant, it often resulted in an 8-hour drive round-trip along with an overnight stay. Fortunately, I had relatives in the area or it would have also cost me a room at a motel. This played a part in my decision regarding the rental price. I also was very fortunate for the first 10 years that I rented out my property because I got a very good tenant. She often made minor repairs herself and then would let me know what she did. I would compensate her with her next month’s rent. I also made the decision not to raise her rent during the entire time she lived there because I valued our relationship that much.

Insurance. Insurance for rental property is more expensive than non-rental property, especially if it includes income protection clauses and from my own experience I would never do it without this clause. In my case, one of my tenants made a mistake that resulted in a fire and while the property was being repaired I would not have had any income from it were it not for that protection.

Potential excessive wear and tear. Tenants don’t always take reasonable care of the property as the landlord might. It could be because they don’t care since it isn’t their own or maybe they are the type of people that wouldn’t take care of it even if it was their own. This can deplete the value of the property and as I already mentioned, property value plays a role in determining the rental price. I learned in my experience that good renters are not that common.

Renter turn-around costs. There are costs involved with filling the vacancy of a rental property. When my first tenant informed me she would be moving I quickly learned how much work it can be to fill that vacancy. Having the house sit empty is not a good option. The costs of ownership don’t stop because the house is empty. Listing the property availability isn’t free either and when renters turn-around is rapid it can be a real headache. My second renter was only there for one month before giving me notice and so I had to start all over again. In my case, the tenants paid their own utility costs and when it is vacant I suddenly had those costs to take care of. In the winter it was worse as I had to hope the heating system or power continued to work so I wouldn’t have potential damage on my hands from frozen and/or burst water lines or the hot water heating system.

These are just a few quick thoughts that came to mind. There could be other factors that are influential.

 

[Kathi]

There are reasons beyond greed that could affect rental costs.

Property value. In order to purchase the property the owner had to expend a significant amount of money. This most likely includes a mortgage with interest. He certainly can’t be expected to rent it out at a loss.

Property taxes. Aside from the purchase price and/or mortgage costs, there are the property taxes to consider and in many or maybe most situations, income property may include a higher property tax base as if property taxes aren’t high enough already.

Maintenance. Maintaining a home can be expensive. The owner needs to consider the cost of roofing, siding, repainting, flooring, and other general repairs and upgrades. I am a former landlord and in my case I lived nearly 200 miles from the rental property so when things required repair and I got the call from my tenant, it often resulted in an 8-hour drive round-trip along with an overnight stay. Fortunately, I had relatives in the area or it would have also cost me a room at a motel. This played a part in my decision regarding the rental price. I also was very fortunate for the first 10 years that I rented out my property because I got a very good tenant. She often made minor repairs herself and then would let me know what she did. I would compensate her with her next month’s rent. I also made the decision not to raise her rent during the entire time she lived there because I valued our relationship that much.

Insurance. Insurance for rental property is more expensive than non-rental property, especially if it includes income protection clauses and from my own experience I would never do it without this clause. In my case, one of my tenants made a mistake that resulted in a fire and while the property was being repaired I would not have had any income from it were it not for that protection.

Potential excessive wear and tear. Tenants don’t always take reasonable care of the property as the landlord might. It could be because they don’t care since it isn’t their own or maybe they are the type of people that wouldn’t take care of it even if it was their own. This can deplete the value of the property and as I already mentioned, property value plays a role in determining the rental price. I learned in my experience that good renters are not that common.

Renter turn-around costs. There are costs involved with filling the vacancy of a rental property. When my first tenant informed me she would be moving I quickly learned how much work it can be to fill that vacancy. Having the house sit empty is not a good option. The costs of ownership don’t stop because the house is empty. Listing the property availability isn’t free either and when renters turn-around is rapid it can be a real headache. My second renter was only there for one month before giving me notice and so I had to start all over again. In my case, the tenants paid their own utility costs and when it is vacant I suddenly had those costs to take care of. In the winter it was worse as I had to hope the heating system or power continued to work so I wouldn’t have potential damage on my hands from frozen and/or burst water lines or the hot water heating system.

These are just a few quick thoughts that came to mind. There could be other factors that are influential.

Maybe.But they can put a nice security deposit on the place for damage.Some of the above might play into it but I think alot of it is just greed.To want and line their pockets as much as possible.There are some people who see my point and some people are rather insulted especially those who have rental property.

 

[jasonc]

Maybe.But they can put a nice security deposit on the place for damage.Some of the above might play into it but I think alot of it is just greed.To want and line their pockets as much as possible.There are some people who see my point and some people are rather insulted especially those who have rental property.

ac units if they take a crap, will cost more then two months rent and one a month's security. would want to assume that could happen and pay up just in case? what about hot water heaters?water line leaks that require the foundation to be cut and the line replaced?

 

[jasonc]

In the End Times and we are there now.

2 Timothy 3:2 For men will be lovers of themselves, lovers of money, boasters, proud, blasphemers, disobedient to parents, unthankful, unholy,

so im greedy if I charge more to fix GOVERMENT mandated safety items on a car? ie air bags

 

[Kathi]

ac units if they take a crap, will cost more then two months rent and one a month's security. would want to assume that could happen and pay up just in case? what about hot water heaters?water line leaks that require the foundation to be cut and the line replaced?

If they are A/C which many do not.I guess you can add every little thing into a rent including a horrible earthquake which may never happen.

 

[Kathi]

so im greedy if I charge more to fix GOVERMENT mandated safety items on a car? ie air bags

If a person charges a bunch more than they need and have an extra $1,200.00 in their pocket I call that greed.

 

[jasonc]

If they are A/C which many do not.I guess you can add every little thing into a rent including a horrible earthquake which may never happen.

the landlord pays that, you don't. renter insurance is on you. I have been where you have.that is why I said by implication. its the leftist states that make it hard to rent. ie I oay on p & I on my home 688 a month for 1100 sq ft home. in nyc that wouldn't get you a one room apartment that is subsidized.

 

[jasonc]

If a person charges a bunch more than they need and have an extra $1,200.00 in their pocket I call that greed.

I know shops can be greedy, but 20k worth of tools aren't cheap. remember if an airbag system kills you and I as a shop and or person fixed that. im LIABLE. that is why I wont do sidework on those systems. my own cars , yes, but not for anyone else. but are you suggesting that government mandate what a business should charge?

shoot if we went there. heres my list:

1) musicians, and Hollywood stars make too much
2) all sports athletes make too much
3) song writers make too much and also book writers that movies are made from
4) dog grooming? too much. oh wait my step daughter makes money in that, funny how that works out. personally I don't care, just I wouldn't spend a thousand or more for some art on my dog with her fur as the tapestry.

 

[Christ_empowered]

a lot of people who own rentals use property management companies. that's what my parents do, anyway. They take a little bit off the top and they set the price...which could be a good thing or a bad thing for the tenant. Probably usually a bad thing :-(

 

[jasonc]

a lot of people who own rentals use property management companies. that's what my parents do, anyway. They take a little bit off the top and they set the price...which could be a good thing or a bad thing for the tenant. Probably usually a bad thing :-(

I know that it sucks to rent but if you all do get the chance to buy a home then you understand why they do what they do. if I rented out my home. I would restrict it to no smoking.

 

[WIP]

If a person charges a bunch more than they need and have an extra $1,200.00 in their pocket I call that greed.

So would I be accurate to say that if you were an owner of a rental property you would never ask for more than your actual expenses of your renters? How would you calculate that?
For example, how would you plan to replace the roof when it is time to be replaced? I put a new roof on my house in 2001 and it cost me over $8,000.00. Cheap shingles alone will only have about 20 year life. I wonder how much it will cost to replace my roof again in 2021? Last I heard the price to hire a roofing contractor has gone up quite a bit since 2001. Using the cost-of-living calculator found on the American Institute of Economic Research website I went back 20 years from today to see what the cost of living has done. An $8,000.00 expense in 1994 would cost just short of $13,000 today. That's more than a 50% increase. $13,000.00 divided by 20 years is an annual cost of $650.00. That's just about $55.00 per month. Rent needs to cover that.

What about carpeting and other flooring, siding, water heaters, refrigerators, cook stoves, heating system, water main from the street, etc. Security deposits don't cover these normal wear items and rightly so. These expenses must be covered by the rent so you need to calculate an expected life and figure it in to the rent. The water main example I actually dealt with. I neglected to consider this as a possible expense and when the water line developed a leak between the city shut-off valve and my home, I found out I am responsible for the cost of the repairs.

 

[WIP]

I know that it sucks to rent but if you all do get the chance to buy a home then you understand why they do what they do. if I rented out my home. I would restrict it to no smoking.

Oh yes, smoking. That costs the owner too in value depreciation, aesthetics, and repainting cost. Last I recall, painters don't come cheap.

 

[Kathi]

So would I be accurate to say that if you were an owner of a rental property you would never ask for more than your actual expenses of your renters? How would you calculate that?
For example, how would you plan to replace the roof when it is time to be replaced? I put a new roof on my house in 2001 and it cost me over $8,000.00. Cheap shingles alone will only have about 20 year life. I wonder how much it will cost to replace my roof again in 2021? Last I heard the price to hire a roofing contractor has gone up quite a bit since 2001. Using the cost-of-living calculator found on the American Institute of Economic Research website I went back 20 years from today to see what the cost of living has done. An $8,000.00 expense in 1994 would cost just short of $13,000 today. That's more than a 50% increase. $13,000.00 divided by 20 years is an annual cost of $650.00. That's just about $55.00 per month. Rent needs to cover that.

What about carpeting and other flooring, siding, water heaters, refrigerators, cook stoves, heating system, water main from the street, etc. Security deposits don't cover these normal wear items and rightly so. These expenses must be covered by the rent so you need to calculate an expected life and figure it in to the rent. The water main example I actually dealt with. I neglected to consider this as a possible expense and when the water line developed a leak between the city shut-off valve and my home, I found out I am responsible for the cost of the repairs.

I am taking into consideration the repairs of the home,taxes etc.I guess it is between the Landlord and God as far as the greed issue goes.God knows the heart.

 

[jasonc]

So would I be accurate to say that if you were an owner of a rental property you would never ask for more than your actual expenses of your renters? How would you calculate that?
For example, how would you plan to replace the roof when it is time to be replaced? I put a new roof on my house in 2001 and it cost me over $8,000.00. Cheap shingles alone will only have about 20 year life. I wonder how much it will cost to replace my roof again in 2021? Last I heard the price to hire a roofing contractor has gone up quite a bit since 2001. Using the cost-of-living calculator found on the American Institute of Economic Research website I went back 20 years from today to see what the cost of living has done. An $8,000.00 expense in 1994 would cost just short of $13,000 today. That's more than a 50% increase. $13,000.00 divided by 20 years is an annual cost of $650.00. That's just about $55.00 per month. Rent needs to cover that.

What about carpeting and other flooring, siding, water heaters, refrigerators, cook stoves, heating system, water main from the street, etc. Security deposits don't cover these normal wear items and rightly so. These expenses must be covered by the rent so you need to calculate an expected life and figure it in to the rent. The water main example I actually dealt with. I neglected to consider this as a possible expense and when the water line developed a leak between the city shut-off valve and my home, I found out I am responsible for the cost of the repairs.

add if you are on a septic tank and forced to convert to sewer service.

 

[Kathi]

That was my community a couple years ago. The old 90yo lady next door had to somehow come up with $15k while living on a pension. I know a lot of home owners who struggled to somehow be expected to have a heap of cash come from thin air. Some are just struglling to pay a mortgage.

Alot of people are having to dish up 50% of their monthly budget just for rent.It is going to get alot worse.I can't see how the average person will be able to rent a home in a couple of years.

 

[WIP]

These sound like the same concerns I heard when I was young. I remember when I was going to college and filing up my car with gas for $.52 per gallon. I noticed the premium fuel was $.74 and I said to myself that if regular gas ever got that high I'd have to quit driving.

I also q quit college because I couldn't imagine how I'd be able to handle a $10,000.00 college debt when I got done. Worst mistake of my life. This year alone my daughter's college cost was over $16,000.00.

 

[Kathi]

These sound like the same concerns I heard when I was young. I remember when I was going to college and filing up my car with gas for $.52 per gallon. I noticed the premium fuel was $.74 and I said to myself that if regular gas ever got that high I'd have to quit driving.

I also q quit college because I couldn't imagine how I'd be able to handle a $10,000.00 college debt when I got done. Worst mistake of my life. This year alone my daughter's college cost was over $16,000.00.

I know that college is very expensive.I put my daughter through school as long as I could for a couple of years.Her dad should have taken on that expense.It is your son/daughters future.I think it is important.

 

[jasonc]

That was my community a couple years ago. The old 90yo lady next door had to somehow come up with $15k while living on a pension. I know a lot of home owners who struggled to somehow be expected to have a heap of cash come from thin air. Some are just struglling to pay a mortgage.

in my county they would charge you but you can pay with your ad valorem over a period of three yeas. its not that high.