Why doesnt your work pay go up when your rent has been raised by the landlord?

Question

what makes the landlord think you can afford to pay higher rent?

Answer 1

Your work is not directly linked to your rent. They are in different equations in life. Meaning, your landlord doesn't know what the flip your employer is doing, nor do they care too much probably.

TAXES GO UP: The landlord does not have a choice when it comes to property values and taxes! If the value of the property you are renting goes up twice in value in 10 years.. the rent has to go up too! Otherwise the landlord would be paying you to live there.

UTILITIES: He/she also probably has to pay some sorts of utilities for you (garbage or cable or whatever). Those utilities are making record changes.

Also.. VOTING! It's important to vote. People think that because they rent, levies and other important voting that effects property taxes don't affect them because they're renting. WRONG! The landlord has to pass on that bill somehow - they don't just pay for it themselves and consider it a christmas gift! You need to vote even if you rent - for what you think is important in your community. If the school system already wastes money, and you see a levy to pay 5% of your property value to help fund schools.. you need to make a stand and vote against the levy! Because it -WILL effect your rent indirectly.

VERY LITTLE PROFIT FOR LANDLORDS: Believe it or not, most landlords only profit about 2% when all is said and done regarding monthly and yearly ongoing expenses. All they're doing is trying to break even and build up value so as to have a nest egg for retirement. But it's not worth a dam thing unless it's sold. So in the meanwhile, you and everybody else is paying the rent - that covers the mortgage and the taxes and upkeep of the units, staff to maintain, helps pay for the units that are unoccupied until they can be made ready for the next tenant to occupy them, the costs to make the unit ready, legal fees for getting money from tenants who don't pay, being prepared for a unit that burns down, etc.. And then he/she needs the 2% profit or so - so that he/she can put food on the table. I never understood it until I got into property management. I would NEVER own my own rentals. It's not easy and the reward.. there is very little other than the back end., 40 years down the road. I'd rather invest in other ways. Rentals are a lot of work.

COLA: Cost of living adjustment. It's what companies (some) give to their employees. Where they get the figures I haven't the foggiest though. Our grocery bill, gas bill.. all the neccessary expenses.. they've gone up a HELL of a lot more than my COLA has. But the flipside.. is if they DID give us that much more money.. our benefits would go down.

America is changing. And a lot has to do with the people. Not caring anymore. Interested in the now and being selfish as well. It's not like it used to be 100 years ago.. Rich are getting richer and poor are getting more poor, and the middle class is disappearing.

Answer 2

Those are two entirely separate issues. Sure, they both impact you, but your landlord has to meet his expenses and get a fair return on his investment. He is running a business after all!

As long as the rent increase meets any legal guidelines (which are zero in most jurisdictions, by the way) he is free to raise the rent any time he wishes and as much as he wishes.

As a former landlord, I actually hated to raise rents. Usually it was in response to increased costs on my part that I could no longer afford to absorb -- and the rent increases almost never covered my cost increases. That's one of the reasons that I sold off my properties and got out of the business.

Answer 3

Since when has your employer become responsible for your choice of housing and housing costs?

If the rent is increased to beyond market rates, you should move. If your pay is below market rates, it's time to find a new job. But they have no relationship to each other - and they shouldn't.

Answer 4

Wait and see what happens when they decide to raise minimum wage, we will all be screwed then.

Most companies give a "cost of living" raise, but unfortunately not all of them do.

Answer 5

That would be awfully convienient, wouldn't it???

Good jobs, however, do usually offer a yearly "cost of living" raise.