When private equity buys your apt complex

[china mom]

the place we rented had a pool-the landlord included pool service which i think probably saved her money in damages long term. she should have done a plan with the local hvac place too cuz a month after we moved in the entire system went down and the result was learning the previous tenant (of several years) had NEVER changed the filter which resulted in the entire system being destroyed AND all the ducts collapsing inside themselves (think of a straw when you drink a very thick shake). tens of thousands in repairs.

I have HVAC service contracts on all my houses which includes two preventative maintenance visits a year plus my PMs conduct inspections which include ensuring that the filter is changed by the tenant quarterly (per the lease).

I have seen the damage that can be caused by not changing the filter.

 

[china mom]

It does just make me sad. Nobody cares where that guy goes or how he gets along. We had retirees here who were not able to stay. The new people raised rents for our 2/B 2/B from $1300 ish to $2100 after the upgrades. We are now going to pay the same amount of money for 760 sq ft as we originally did for 1330 sq ft when we move. The more $$ for less thing we have going in this country seems like it might hit a wall someday.

I did feel bad since he wasn't a bad tenant when is came to not trashing the house. But OTOH, who feels bad for the landlord who has to pay the mortgage on a house with a non-paying tenant? How about all the landlords who struggled during COVID when there was a moratorium on evictions? I have landlords in my landlord group who had non paying tenants accept rent assistance form the government and used the money for other things and still didn't pay rent.

Landlords get beat up and are accused of being greedy but the other side of it is when you put your money and heart into providing a good product and then you go to the house after a tenant leaves and find holes in the walls (fist holes, not nail holes), broken appliances, flooring that has to be replaced etc. I have to charge the rents that I do just to cover my expenses. If every tenant paid their rent and left the house in good condition, I could charge less but that isn't happening.

I can be empathetic for the former tenant who has to find something else and for the seniors in your complex but I can't fix it.

 

[CAPSLOCK]

You find a good landlord and just stay put.

Yes. I lived in the same rental (duplex) for 15yrs, we just bought earlier this year. The landlord never raised our rent and we never bothered the landlord except for major stuff - 2 x leaks, 1 x heat not working, 1 x fallen tree crushed porch stairs. Landlord even let us get a 2nd dog because we were responsible and he wanted to keep us as tenants. I'm sure we were paying less than half the going rate.

You could have incrementally raised the rent on a new tenant.

I see that point but I am separating the two actions. First off, I had a worrisome tenant who left me wondering each month if I could pay the mortgage and second (separate issue), I had the opportunity to rent at market rate.

I'm on team @china mom on this one - assuming the two actions are separate, there is no longer an existing tenant. If he was only paying $500, should rent for a whole new tenant be based on that? Should my previous landlord, who didn't raise our rent for 15yrs, now continue to rent it at that decade old rate, just so it doesn't "jump up" on someone new who has no idea what it rented for previously? That makes no sense. What a previous tenant was paying is irrelevant.

 

[Mackenzie Click-Mickelson]

I'm on team @china mom on this one - assuming the two actions are separate, there is no longer an existing tenant. If he was only paying $500, should rent for a whole new tenant be based on that? Should my previous landlord, who didn't raise our rent for 15yrs, now continue to rent it at that decade old rate, just so it doesn't "jump up" on someone new who has no idea what it rented for previously? That makes no sense. What a previous tenant was paying is irrelevant.

Not in the world where you've kicked out your tenant and raised it. Besides the poster was quite clear that they would charge market rent because why not in their minds (FTR I'm not disagreeing with that principle just discussing the ramifications of doing so including what people will think of you). They were going to raise it for that existing tenant and then became concerned regarding ability to pay.

The high raising of rent further contributes to the issues of affordability and housing insecurity. You're welcome to read on especially where I discuss my area. Like it or not there isn't one option. And here the homeowners of rental properties (at least in the most vulnerable area and generally speaking ) are very concerned about the affordability, even they agree it's damaging to their city.

Regarding your situation your landlord had every opportunity to raise the rent incrementally over the 15 years. Is there a reason they did not? Did they think you would not be able to afford it? Just being nice? That's on them. But if a new person took over the ownership of the home and word got around of a huge increase to make up for the 15 years it's probably not going to look favorably on. And my guess is it would push someone out of a housing opportunity. These are rhetorical questions TBH as I'm not truly asking just saying it out loud

Anyone is welcome to do research about the housing crisis in the U.S. Rationalizing it to me is like trying to assuage your (general) feelings and someone trying very hard to change the impression of a stranger on the internet says something more about how they may actually feel about what occurred.

 

[Mackenzie Click-Mickelson]

But OTOH, who feels bad for the landlord who has to pay the mortgage on a house with a non-paying tenant?

Everyone does if they were a good landlord. But don't confuse the situation it's really not an all or nothing.

Someone can feel like a landlord is between a rock and a hard place but disagree with the exact decisions made. Someone can say we all know a slumlord and yet that's not representative of everyone. Someone can say tenants took advantage of landlords and didn't pay (even when they really could) and someone can say that landlords took advantage of tenants by illegally evicting them and increasing rents. All of these occurred during the rent collections stoppage.

But none of that should impact your feelings on what you did. They are your choices made by your decision. You've posted before about issues before of being a landlord on the DIS and looking back to the spring your very first part of your OP says "I posted the house on FB marketplace and got a bunch of comments about the rent being too high and that means I am greedy and we landlords should provide affordable housing." I didn't even know about this other thread (or remember it if I commented on it which I probably did) but I think you're aware of what your decisions do even if you feel they are the right one to make with the circumstances you have. Perhaps that's why you were giving me all the reasons you did because you already had gotten the feedback of the price.

I'm not all or nothing here, but I did have an impression on the choice you made, it's really whatev, what I as a stranger feels on the DIS doesn't need to impact your feelings as being a landlord. I know the struggles of them with my sister-in-law being one of them, even my in-laws are about to become landlords to non-relatives in a few months and have just spent a lot to replace all the single pane windows in that house. I get it, but I am also allowed to have opinions even being on that side of it, they just may not be on your side. I wish you good luck on the endeavors and hope you have better tenants in the future. I'm going to go ahead and move on from this thread

 

[china mom]

Not in the world where you've kicked out your tenant and raised it. Besides the poster was quite clear that they would charge market rent because why not in their minds (FTR I'm not disagreeing with that principle just discussing the ramifications of doing so including what people will think of you). They were going to raise it for that existing tenant and then became concerned regarding ability to pay.

My decision not renew the current tenant's lease and the decision to raise the rent were based on several criteria. I can't remember how long I had the tenant but it was somewhere between six months and a year. And during that time, he was late several times so I decided that I probably would not renew the lease.

I received some CMA's which indicated that he was below market rent but this was not the sole determining factor to not renew because, frankly, the math justifies keeping an existing tenant with low rent over a new tenant with higher rent if the increase is going t less annually than a months rent (due to the inoccupancy while finding a new tenant.) So, since he was paying $1750, raising the rent by anything less than $145/mo, I am better off having him stay.

But, if he was struggling to pay $1750, he would probably not be able to pay $1800 or $1850. At that rent, I would probably be considered a charity since rent would not cover my annual costs plus a contingency for repairs.

 

[CAPSLOCK]

But if a new person took over the ownership of the home and word got around of a huge increase to make up for the 15 years it's probably not going to look favorably on.

Why? If someone is paying significantly below market rent, then why would the next person feel entitled to get significantly below market rent? Also shouldn't matter if it's a new landlord and or the same landlord - either way, the rent is brought up closer to market value. What does it matter what the tenant before paid? Not saying to push it to the very top of what the market can withstand, but at least to get within spitting distance of market value.

It seems like maybe people get caught up on the actual $ raised, and not where the final cost falls on a rental value scale. You can have a huge jump & still be under market value. Say someone was paying $500 in an area where the market value is $3000. Then a new tenant moves in, and now the rent is $2000 or $2500 - that rent has been raised hugely, but IMO it's totally reasonable & expected.

If a landlord rents a home at a very low rent to a specific tenant, should they be expected to do the same thing the next tenant and the next tenant, and whoever buys the house to rent should also continue to ask way below value, just because at one point someone was paying a low rent?

 

[china mom]

Not in the world where you've kicked out your tenant and raised it. Besides the poster was quite clear that they would charge market rent because why not in their minds (FTR I'm not disagreeing with that principle just discussing the ramifications of doing so including what people will think of you). They were going to raise it for that existing tenant and then became concerned regarding ability to pay.

Which people? A stranger on the internet. I'm good

The high raising of rent further contributes to the issues of affordability and housing insecurity. You're welcome to read on especially where I discuss my area. Like it or not there isn't one option. And here the homeowners of rental properties (at least in the most vulnerable area and generally speaking ) are very concerned about the affordability, even they agree it's damaging to their city.

Any charitable organization is free to offer free or reduced housing. Anyone who would like to can donate to a group that provides rent subsidies. But, I am running a business and need to cover my costs and (hopefully) make a profit. We do not blame grocery stores and restaurants for people suffering for food insecurity. Frankly, I believe that housing insecurity falls on the builders who stopped building modest homes in exchange for larger luxury homes. But then again, they are a business and larger homes were what consumers demand.

Anyone is welcome to do research about the housing crisis in the U.S. Rationalizing it to me is like trying to assuage your (general) feelings and someone trying very hard to change the impression of a stranger on the internet says something more about how they may actually feel about what occurred.

As I expressed in a post early on in this discussion, I am engaging in tis dialogue because I enjoy the back and forth. And if other forum members see the landlord side of thigs, all the better. But I am not assuaging my feelings and I am not trying to change your impression of me or my actions. I I was just enjoying our engagement.

I sleep very well at night. Well, when I am not worrying about what tenants are doing to my house . I have no feelings to deal with and at the end of the day, you and I are strangers. But you are articulate and well informed so I have enjoyed our back and forth.

 

[china mom]

But none of that should impact your feelings on what you did. They are your choices made by your decision. You've posted before about issues before of being a landlord on the DIS and looking back to the spring your very first part of your OP says "I posted the house on FB marketplace and got a bunch of comments about the rent being too high and that means I am greedy and we landlords should provide affordable housing." I didn't even know about this other thread (or remember it if I commented on it which I probably did) but I think you're aware of what your decisions do even if you feel they are the right one to make with the circumstances you have. Perhaps that's why you were giving me all the reasons you did because you already had gotten the feedback of the price.

I'm not all or nothing here, but I did have an impression on the choice you made, it's really whatev, what I as a stranger feels on the DIS doesn't need to impact your feelings as being a landlord. I know the struggles of them with my sister-in-law being one of them, even my in-laws are about to become landlords to non-relatives in a few months and have just spent a lot to replace all the single pane windows in that house. I get it, but I am also allowed to have opinions even being on that side of it, they just may not be on your side. I wish you good luck on the endeavors and hope you have better tenants in the future. I'm going to go ahead and move on from this thread

I did post about the comments I received on FB when people were calling landlords greedy. But, even though the FB page was a community page and my real name is on there, I still have not a care in the world what those people felt about me individually. I just felt the need to defend landlords and maybe educate a few people that it is not all greedy landlords making millions of dollars while good people go homeless. Some of us landlords are breaking even or only making a small profit.

If you go through my past posts, you will see that I also defend the actions of police officers, free range parents and any other groups that I feel a connection with.

I am sorry that you feel that I believe that you are not allowed to have opinions on this subject. I thought we were having a rather lively discussion. Either way, thank you for your well wishes. I am hopeful that this will be my year that the houses do well and that all of my tenants are happy in my homes.