Are homeowners rejoicing?

[Mishpacha House]

Yes, we were fortunate (and were planned ready) to take advantage of the market at the end of 2011.

We stepped into a short sale and waited out the bullying by the bank(s) as the market kept slipping more and more into our favor. And as you say, the interest rates were at historic lows.

We were ready to buy in the early 2000’s, but an adviser counseled us to wait. We did. And the market started up and further up and eventually priced us out.

In hindsight, we would have made the same financial mistakes so many others made by buying beyond our means. A very smart and dear friend saved us from ourselves.

Now, my wife works 3 days a week and I run a non-profit in a house that is one of, if not THE largest home in our neighborhood. Canyon/mountain views on an 8ooosqft level lot.

Not only are we benefiting, but so are 5 of our friends that stay in the house with us. (we in the granny flat-they in the main house)

Our very low mortgage is paid for by our ‘guests’ with very low (under market) rent. So it is a win-win for everyone here.

And if/when we get tired of having ppl on our property, we can either send them on their way or move out ourselves. raise the rent to match the market and have them pay for our ‘more private’ living expenses (house or condo).

The market seems to go in cycles. With each having separate factors that play into them making them unique.

Not all home owners are rejoicing, and not all renters are cursing.

[FlyerInHi]

Yes the market goes in cycles. But people go by their biological clock. They can’t wait it out.

Since the 70s, people have been moving out of California because it was getting too expensive, to be replaced by new arrivals. The demographics bear that out. It’s neither good or bad. It’s what it is. Expensive is relative.

I personally wish my parents had sold California and bought in Manhattan back in the 80s. Hindsight is 20/20.

[spdrun]

People move within the US – that’s the story of this country. I don’t see a net population loss in CA since the 70s, quite the contrary 🙂

[Jazzman]

Kev, if you are all renters in the complex, get together with other tenants and devise a plan of action. There must be others who feel the same way, in which case you have some leverage and can approach the landlord with a request to lower or cap the rent. They’d respond out of fear you’d all given notice which would hurt their bottom line. They sound ruthless so fight fire with fire.

[Coronita]

[quote=Jazzman]Kev, if you are all renters in the complex, get together with other tenants and devise a plan of action. There must be others who feel the same way, in which case you have some leverage and can approach the landlord with a request to lower or cap the rent. They’d respond out of fear you’d all given notice which would hurt their bottom line. They sound ruthless so fight fire with fire.[/quote]

waste of time imho…..

Rental market is kinda tight too.

The way things work…Someone has already done some market research…They probably figured out that they could get away with raising rents to that price… It will still be at least market rates, maybe even slightly lower than market rates…. Probably enough to be outraged, but probably not so outrageous it will motivate enough people to move in a meaningful way…

It’s the same feeling the first time I was a renter… Rent prices went up by about $60/month. I was ticked, motivated to find another cheaper place…Spent about 2-3 weeks looking. Figured out that despite the rent increase, it was still a better price than any other property out there for the same price, and plus the hassle of moving…Hence one of the reasons I bought as soon as I could, even in overpriced NorCal

[Jazzman]

^^^ 15% in one year?! Sounds more like gouging than market research.

[Coronita]

[quote=Jazzman]^^^ 15% in one year?! Sounds more like gouging than market research.[/quote]

The question is whether the OP was way below market or not….

If the asking rent is way out of wack with market price reality, then all he has to do is move… Rent prices can’t be *that* out of wack from market prices…..I don’t think rent gouging really works if there’s no demand for it at that price…. The question is whether a comparable rental is less… Is it?

And the other question.
Was he the only one that got the notice. Maybe his rent was way below market versus everyone else.

[joec]

I agree that banding together with other tenants is a losing idea. Most of these large complexes have full time staff working while each individual renter is just that, an individual where the cost/hassle of moving far outweigh paying a little more per month.

At the end of the day, most of these places know the market rents since they deal with it all the time as it’s their job/business and they evaluate the market rent whenever someone moves out.

Maybe for the old landlord with 1 or 2 properties who want good tenants and less hassle, trying to do something like this seems like you’d end up just swallowing your pride and arguing, but retreating with your tail between your legs.

At the end of the day, people have to realize your “primary” residence is a home first and pretty much that’s it actually. It doesn’t matter as much as long as you can pay since you have to live somewhere. For people with school aged children, this is even more true since they are less likely to want to move their kids to a different area.

A house close by me just rented their place in like a week for much more than my mortgage. This looks like it’s 10-20% higher than 2-3 years ago as well so it seems people are willing to pay since they have no choice. One reason to just own so you don’t have to feel threatened and pissed off since you have no control as a renter.

Tough to buy with high prices/credit issues as well probably driving rents higher.

[CA renter]

[quote=Jazzman]Kev, if you are all renters in the complex, get together with other tenants and devise a plan of action. There must be others who feel the same way, in which case you have some leverage and can approach the landlord with a request to lower or cap the rent. They’d respond out of fear you’d all given notice which would hurt their bottom line. They sound ruthless so fight fire with fire.[/quote]

Excellent idea, Jazzman. It can’t hurt, and there’s power in numbers. Doesn’t matter if there are other renters who would move in. It will still take more resources for the landlord to advertise, screen the new tenants, fix up the apartments, etc. They would lose thousands. Definitely time to turn the tables on these parasitic landlords.

[Jazzman]

[quote=flu][quote=Jazzman]^^^ 15% in one year?! Sounds more like gouging than market research.[/quote]

The question is whether the OP was way below market or not….

If the asking rent is way out of wack with market price reality, then all he has to do is move… Rent prices can’t be *that* out of wack from market prices…..I don’t think rent gouging really works if there’s no demand for it at that price…. The question is whether a comparable rental is less… Is it?

And the other question.
Was he the only one that got the notice. Maybe his rent was way below market versus everyone else.[/quote]
It’s very difficult to comment further without the OP’s input, but I find it hard to believe landlords in soCal rent way below market rent. People will pay more than they can afford just to keep a roof over their heads, and Landlords who play on this are unscrupulous. If they over-paid or RE prices are highly-inflated, they can’t expect tenants to bail them out. But as I said, we’re short on numbers and facts here.

[Jazzman]

[quote=joec]I agree that banding together with other tenants is a losing idea. Most of these large complexes have full time staff working while each individual renter is just that, an individual where the cost/hassle of moving far outweigh paying a little more per month.

For most cases, yes. But we’re not talking a little more rent.

At the end of the day, most of these places know the market rents since they deal with it all the time as it’s their job/business and they evaluate the market rent whenever someone moves out.

Unscrupulous, greedy landlords do exist. Raising rents is sometimes tactical.

Maybe for the old landlord with 1 or 2 properties who want good tenants and less hassle, trying to do something like this seems like you’d end up just swallowing your pride and arguing, but retreating with your tail between your legs.

Sorry, I don’t follow.

At the end of the day, people have to realize your “primary” residence is a home first and pretty much that’s it actually. It doesn’t matter as much as long as you can pay since you have to live somewhere. For people with school aged children, this is even more true since they are less likely to want to move their kids to a different area.

Not quite following the logic of this, but the crux of it seems to be “as long as you can pay.” Isn’t the point that some landlords take advantage of the necessity of having, and hassle of finding a roof over your head?

A house close by me just rented their place in like a week for much more than my mortgage. This looks like it’s 10-20% higher than 2-3 years ago as well so it seems people are willing to pay since they have no choice. One reason to just own so you don’t have to feel threatened and pissed off since you have no control as a renter.

That’s interesting. I don’t know anyone who willingly pays because they have no choice. Being forced to make a decision to buy because you can’t afford to rent is ludicrous!

Tough to buy with high prices/credit issues as well probably driving rents higher.

It would seem that way, but when you place it in its historical context, “tough” isn’t the word that springs to mind.[/quote]

[Jazzman]

[quote=CA renter][quote=Jazzman]Kev, if you are all renters in the complex, get together with other tenants and devise a plan of action. There must be others who feel the same way, in which case you have some leverage and can approach the landlord with a request to lower or cap the rent. They’d respond out of fear you’d all given notice which would hurt their bottom line. They sound ruthless so fight fire with fire.[/quote]

Excellent idea, Jazzman. It can’t hurt, and there’s power in numbers. Doesn’t matter if there are other renters who would move in. It will still take more resources for the landlord to advertise, screen the new tenants, fix up the apartments, etc. They would lose thousands. Definitely time to turn the tables on these parasitic landlords.[/quote]
Revolution! 🙂

[joec]

I don’t disagree that there are bad landlords, but the OP should chime in and let us know how it went…

Maybe being self-employed, I deal with ignorant customers all day every day and a lot of people who come and bitch/complain don’t really know the situation at all.

If the OP can rent a better place for cheaper, more power to them and they should simply MOVE.

[Reality]

Anyone rejoicing over a paper profit is a dope.

[scaredyclassic]

May I rejoice at what appears to have been a good year?

[Author]

Posts