Raising rent each year?

Question

My husband and I are currently renting. Our landlord raised the rent by $50/month. They said they had to, which I don't understand why they would "have to". Why do landlords raise the rent? Just curious.

They are not incurring any costs per se. Not much has broken and when something has my husband has fixed it deducting it from the rent (so they don't have to hire a handyman). There have not been any real estate tax increases either.

Utilities are not inc except for water.

Answer 1

Most of the answers that I've seen so far seem accurate. There is another explanation of why your rent is going up especially this year. Real estate has appreciated in most popular locations astronomically over the last few of years. The prices are way too high for most people to consider buying one. Even potential landlords can't afford to buy a house, rent it and make a profit.

This assumes that you live in a popular location. So, those landlords that have homes to rent have an advantage to raise the rent in small increments like $50.00. You can't just up and move to another place because the odds of you finding rent at what you're paying now are pretty slim (they know that too). If you do decide to move out, they'll just raise the rent even more (and get it).

Answer 2

Perhaps this is a good indicator that you should check out the possibility of owning your own home. The $12.50 per week increase isn't that bad depending on how long you've been in the home and how much you have been paying. Surely his expenses have raised over a certain period of time like gas bills, water/sewer bills, and just basic inflation. You have three choices... pay it, find a home of your own that you can afford, or move to another rental unit. A word about home owning... it's easy to get the loan but hard to keep paying on it. Make sure that your costs for a home is less than your current rent and that you can afford to pay the additional costs for insurance, maintenance, taxes, and other things. Your landlord is obviously making a profit or he wouldn't be renting to you but you will see that he's not raking in millions. Therefore his response of he has to increase rent is an honest reply.

Answer 3

Even if your tax rate has not increased, the assessment (government determined worth on which the property tax is taken) on the house probably has, which increases the owner's monthly payment. Besides, people become landlords to make money, not just to break even or "be nice" and provide you with a home. They can raise the rent as much as they want when it is time to renew your lease, unless there is some clause in your lease stating otherwise (which there won't be because they wrote the contract).

Answer 4

I'm a landlord and you sound like MY kind of tenant. I so appreciate people who fix things and then just send me the bill...after they were given my permission & encouragement to do so, of course.

I want to keep good tenants so I only increase the rent when my costs increase. For example, the monthly condo fee (which I pay, of course) goes up every year because things like the pool contract and grounds maintenance contract and management contract increase every year. Also, my cost to insure the condo against liability keeps getting bigger and bigger...but god forbid something bad should happen to a tenant in my property and find me un/underinsured! Finally, my property taxes have skyrocketed over the last three years. It's hard to imagine why the taxes where you live haven't.

Answer 5

For a landlord, owning rental property is a business.... one in which they expect to make a profit. The cost of most things have increased greatly in the last year. I have a friend whose rent was just raised $80/month. Mine was raised $30/month. It seems that renters everywhere are facing rent increases.

Answer 6

Think about the upkeep that is needed, the taxes, the cost of living.
The point of renting out a home is to have that home pay for itself without it costing the Landlord anything out of pocket.
I would suggest looking into buying a home. If you are attached to you current rental, see if you can talk the landlords into a rent to own agreement.

Answer 7

You are not at their mercy.

You can discuss it with them and ask for a lower increase.

If there is a high vacancy rate, it would make sense for them to give you a lower rent increase rather than have an empty unit with no rent while they go through the time and expense of rerenting the unit.

Answer 8

It has to do with inflation. When landlords raise rent it is because that dollar amount can buy this year the same amount of stuff as the year befores rent could buy last year.

Answer 9

Today, a typical 15 years old, two bedrooms condo/townhouse is priced around $500,000 and $550,000 in Sunnyvale, California. Rent for similar condo/townhouse is $2000/month.

If you are a home owner, $2,000/month in rent means $20,000 a year in profit ($24,000 per year in rent, minus $4,000 maintenance costs). A $20,000 income is equilevant of owning $400,000 bonds or CDs, because current yield of 30 Years U.S. treasuries are 5% (5% of $400,000 is $20,000). Bank CDs have similiar yields.

Answer 10

generally it extremely is on your lease settlement as to how a lot a lessor can strengthen the lease. examine the nice print on the lease and notice if the lessor has raised it better than what the lease states. usually it relatively is going to state that they gained't strengthen the lease no better than a definite share as long as you have stored up with the words of the lease(making lease on time, no lates), in case you have the lease is void and a clean lease must be signed, in case you have been making on time lease money and the lessor has raised the lease above the lease settlement then you definately've a case to get that money back that variety into overpaid. of course this actual relies upon on in case you have a apt. community that works with actual lease agreements, no longer via one that merely owns some homes (self reliant landlords). maximum sturdy self reliant landlords have some sort of an settlement however the language in them continually leans in the direction of them, it extremely is maximum suitable to lease from a company owned complicated, than persons contained in the long-term. sturdy success.