A colleague of mine asked me if I know how to calculate his increased payment as his ARM mortgage resets on his rental property. He said, he plans to increase the rent in proportion to the increase in mortgage payment. His argument was that for years, property prices rose and we didn’t increase rent then but now we are merely increasing rents to levels that “reflect” the actual property price. I told him to stop with the excuses. Bottom line is that folks are increasing rent because now they can, as they have more demand.
