Home rental prices

[heyvavhey]

On 1/29/2014 at 1:51 PM, missmuffet said:

I can not believe the horrible rental prices for homes.I am looking for a rental home and it is ridiculous.It can be $2,000.00/mo. and it is a dive.Why are people doing this?Are they in horrible debt so they need alot of extra money in their pockets?Are they just starting with really high prices to see if they can get that and then come down?What a RIPOFF 

 

location, location, location

 

 

 

[MorningGlory]

10 hours ago, Davida said:

I think it is very judgmental calling people who are landlords  greedy simply because they own property for an income as no one has any idea what they are dealing with & what their costs are.   Is someone also "greedy" for expecting a weekly paycheck or asking for a raise, or accepting as much as they can get paid/hr? Renting to people can be a huge nightmare.

As a former landlord, I know exactly what you mean.  Anyone who has never been one has no idea how taxes and insurance keep going up and how much a landlord is out with nearly every tenant who moves out an leaves mess and destruction behind.  I would never be one again.

[missmuffet]

1 minute ago, MorningGlory said:

As a former landlord, I know exactly what you mean.  Anyone who has never been one has no idea how taxes and insurance keep going up and how much a landlord is out with nearly every tenant who moves out an leaves mess and destruction behind.  I would never be one again.

Oh I understand your position on tenants who trash a place. Most people just figure it is not their place so who cares. I have talked with many landlords and I have heard horror stories. Sometimes a landlord will think just because a physician or a lawyer or someone who has a fortune will take good care of their property that is not always the case. But rarely they will get someone into their home that they are concerned about and they turn out to be the best tenant in the world. It is risky business.

[Neighbor]

Now that I have defended, along with some others here, the plight and risks of being  a landlord, what of the plight of the tenant? I sure don't comprehend how  people manage to pay the rent. At $18,000 a year out of one's net income, just how much must a family earn  in order to live?  What is the solution that renters are finding?

 

[missmuffet]

10 hours ago, Neighbor said:

Now that I have defended, along with some others here, the plight and risks of being  a landlord, what of the plight of the tenant? I sure don't comprehend how  people manage to pay the rent. At $18,000 a year out of one's net income, just how much must a family earn  in order to live?  What is the solution that renters are finding?

 

Rent is horrible and not all of that money is going for repairs and taxes and insurance. This is right from a landlords mouth. It is called greed.

[Neighbor]

30 minutes ago, missmuffet said:

Rent is horrible and not all of that money is going for repairs and taxes and insurance. This is right from a landlords mouth. It is called greed.

Then you must be right and I must be way wrong. Or perhaps we landlord types are really all just greedy.

  Maybe if landlords do not have any risk  in doing business, no taxes, no insurance, no bills, no risk at all, and it is not about the most capital intensive way there is to  try to make money, maybe I need to get back in the game.

Boy, I must have been doing it all wrong for 31 years.

Seriously;  I have a real estate broker, a friend, that is still in the business, and he tries to put together investors to buy  and rent homes. His presentation comes up with a net before taxes return of almost 5% percent.

I can't imagine what leases are going to go up to when the mortgage interest rates start  to return to historic norms! For then a five percent return will not even be considered and there will have to be a much higher rental income per unit than even now.

Of course I do have trouble understanding how people pay either rent or mortgage payments. The cost per square foot boggles this former builder's mind.

 I undertand that much of the increasing costs are result of increase in standards of construction, building a structure to withstand 150 mph wind load is expensive. And people demand much more of a structure now too. Granite, Jacuzzis, 16 speed vac units, and the like, it ain't cheap. We have long ago pushed through $30 a square foot apartments and homes,  to closer to $112 and yes over $150 per square foot to build. International building code is here, the much higher costs are here to go with it.

Schools can cost easily  over $300 a square foot now-So community property taxes are going nutsy too.

 I am not unsympathetic to the end consumer, fact I don't get it. How do people ever meet the cost?

 I'd love to downsize  my own living quarters, but I can't afford to do that. Seems weird to me, but I can't buy one place, sell another, pay fees, and make it work out financially. It ends up I pay to shrink my living quarters.

 I wish you well in finding a solution for yourself and for your parents, but it s going to be quite the trick to pull off. May God help you all through the turmoil that is housing costs for most of us.

 

Edited December 22, 2016 by Neighbor

[missmuffet]

4 minutes ago, Neighbor said:

Then you must be right and I must be way wrong. Or perhaps we landlord types are really all just greedy.

  Maybe if landlords do not have any risk  in doing business, no taxes, no insurance, no bills, no risk at all, and it is not about the most capital intensive way there is to  try to make money, maybe I need to get back in the game.

Boy, I must have been doing it all wrong for 31 years.

Seriously;  I have a real estate broker, a friend, that is still in the business, and he tries to put together investors to buy  and rent homes. His presentation comes up with a net before taxes return of almost 5% percent.

I can't imagine what leases are going to go up to when the mortgage interest rates start  to return to historic norms! For then a five percent return will not even be considered and there will have to be a much higher rental income per unit than even now.

Of course I do have trouble understanding how people pay either rent or mortgage payments. The cost per square foot boggles this former builder's mind.

 I undertand that much of the increasing costs are result of increase in standards of construction, building a structure to withstand 150 mph wind load is expensive. And people demand much more of a structure now too. Granite, Jacuzzis, 16 speed vac units, and the like, it ain't cheap. We have long ago pushed through $30 a square foot apartments and homes,  to closer to $112 and yes over $150 per square foot to build. International building code is here, the much higher costs are here to go with it.

Schools can cost easily  over $300 a square foot now-So community property taxes are going nutsy too.

 I am not unsympathetic to the end consumer, fact I don't get it. How do people ever meet the cost?

 I'd love to downsize  my own living quarters, but I can't afford to do that. Seems weird to me, but I can't buy one place, sell another, pay fees, and make it work out financially. It ends up I pay to shrink my living quarters.

 I wish you well in finding a solution for yourself and for your parents, but it s going to be quite the trick to pull off. May God help you all through the turmoil that is housing costs for most of us.

 

I am sure there are some who are honest but then again I know that some hike the rent up so some of that money goes into their pocket.

[Neighbor]

"I am sure there are some who are honest but then again I know that some hike the rent up so some of that money goes into their pocket."

 

Oh sure, absolutely.  That is the whole point of taking business risks. Making profit is honest, necessary, and  in fact it is the only alternative to being dishonest, if one is to feed themselves and family from their honest endeavors.

Why would I or anyone buy a home and then rent it at no gain?

 

Do landlords get to make outrageously high profit margins? If that were the case we would all be investing  in some form of REIT ( Real Estate Investment Trust) and be raking in the easy dough.  I suggest  that  investing in residential  rental real estate is a very capital intensive, moderately high risk, venture that ties up cash resources and  becomes a very long term illiquid investment.

 

Because it becomes an emotional issue for tenants it also becomes a target of legislators, making the long term nature of the investment politically quite risky for the investor. In my own case I once got caught in the middle of the 1985  federal tax changes that  modified my  return on investment greatly, to my extreme disadvantage. Now I kept building  units, but  I had to average upward my rents significantly in order to cover the  losses suffered  because of changes in federal tax law. It is a tough game to play. And yes there is no way a tenant will understand that the landlord is not  just a greedy  group/person making huge profits on their backs.

 

May God provide your family with the means to get secure in your own housing.

Edited December 23, 2016 by Neighbor

[Ezra]

6 hours ago, missmuffet said:

I am sure there are some who are honest but then again I know that some hike the rent up so some of that money goes into their pocket.

Whoever offers goods and services expects to have the money go into his or her pocket.  If you work for an employer, you expect your wages to go into your pocket (not into the pocket of a pickpocket).  Landlords are there to make a profit, so labeling landlords as "greedy" is naive. 

Rents are a function of the market. When the supply of rental accommodation exceeds the demand, rents drop.  When the demand exceeds the supply, rents rise.  Unfortunately, too many developers focus on the high end market, therefore there is a shortage of low-rent or reasonable rent accommodation.

If you believe $2,000/mth is high rent, you should check out the rents in high density cities where they could easily be double of that.  So the thing to do is to move to a location where the demand for rental housing is low.  Then you could probably rent a house for $1,000/mth, or even $500/mth.

The blame really rests with governments, who have rendered the values of their currencies as worthless. As long as the Gold Standard was in existence, prices remained low, because the value of the dollar was high. One of Trump's financial advisers is actually keen to have a return to the Gold Standard.

[Heavenunlimited]

Well, we rent here in uk, we pay £725 a month for a small two bed house with a dmall square garden. He has debt so we couldnt rent normally from the estate management rentals, but had to pay seven months upfront, despite Im working now and have no debt there was no mercy, we had either-that will say only me- fit their brackets of x3 the rent, or pay upfront, or have a guarantor. No mercy, despite me working and no debt. I cant however pay x3 rent i dont earn that much a month. But thats what they demand, if I want to rent it only me.  In Scandinavia where Im from I paid the same for a two room apartment. 

The renting in Scandinavia is different than here in Uk, there you rent apartments instead of houses, its hard to come by houses to rent. Unless you buy. 

I dont like the renting system here, where you normally rent 6-12 months. By contract. After two years it looks like many landlords wants you out for unknown reasons and fabricate a lie just to get you out. Thats happened to us three times despite being good renters. That was my welcome to uk having to move all the time. First time, the landlady harassed us as well, and the house before the one we now live as well. Despite not done anything.  For someone not used to this system but grew up secured its been very stressful. So i dont like how landlords can behave. 

The Lord keeps speaking about bying an apartment or house so I hope thats the future. I need more security and He knows.