Insurance Companies have answered my ad and now are offereing more due to misplaced homeowner who are rebuilding. One agent saw that I raised the rent and is accusing me of price gauging. Am I breaking laws? I need the money to cover my losses... Due to demand I think I can get 4000. One Ins. adjuster told me authorizations for increased rental prices during these times are authorized. but another is disgusted and threatens to report my ads to Feds..Yikes!
2007-10-25 03:49:51 · 4 answers · asked by mongoqa 1 in Business & Finance ➔ Renting & Real Estate
It is against the fair housing act to raise rents due to excess damages or acts of God. The fire is an act of God so with that being said, you cannot raise their rent.
And you cannot also raise it almost 100%. Most states have a cap on how much per year you can raise the rent.
Shame on you for taking advantage of your tenant. It is called price gouging and you ARE breaking the law. And the Feds would have a field day with you. You could lose everything if found guilty. I am a landlord of 13 yrs and I would turn you in if I could. You are the type that gives good landlords bad names.
2007-10-25 04:03:58 · answer #1 · answered by kimmamarie 5 · 0⤊ 0⤋
As long as you are not making a huge profit on a disaster you most likely will be OK. However, its never good business to charge less for rent than your costs. If your building would have reasonably brought $4000 in a normal economy than you would certainly be justified in charging market rate. You have no obligation to offer bargain rates.
2007-10-25 04:00:07 · answer #2 · answered by Diane M 7 · 0⤊ 1⤋
While you can generally charge whatever the market will bear, steep price increases after a disaster such as this often bring charges of price gouging. Consult with an attorney before proceeding!
2007-10-25 03:55:11 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
you can what you want its your house he is just jealous that he doesn't have a home to rent out and take in the money from other peoples loses you win some you lose some
that is business
or you can be a nice man a lessen the rent (what ever) do what it takes to get in the most money frequently
Dane NZ
2007-10-25 03:57:00 · answer #4 · answered by Dane'o 3 · 0⤊ 1⤋