“Is That Legal?”: Woman Can’t Believe Her Neighbor With The Same Floor Plan Pays $600 More Than Her In Rent
Rental prices across America have been soaring, with some cities like Austin, Texas, experiencing average hikes of up to 40%, leaving many with a lose-lose decision of either having to find a cheaper place or pay significantly more to remain in their homes.
In a now-viral video, TikToker Callie (@cal_cifer_2.0) explains how she discovered that her neighbor, who had just moved in, was shocked to hear what other tenants are paying—the new renter’s contract has much, much worse conditions. Unfortunately, the story serves as the perfect illustration of the broader context, where so many have to dig deeper and deeper into their pockets just to have a roof over their head.
In this market, finding out you’re getting a bargain on your rent sounds pretty much like winning the lottery
Image credits: Cytonn Photography (not the actual photo)
But when TikToker Callie found out she was paying 46% less than her neighbor living in an apartment with the exact same floor plan, she really felt for the woman
And decided to share the story online
Image credits: Maria Ziegler (not the actual photo)
Image credits: cal_cifer_2.0
There can be many reasons behind different rates for the same floor plan, including pets, the number of people living on the property, smoking, or, as is in Callie’s case, how long some of the tenants have been there.
For example, if you have a pet, this adds wear and tear so you are likely to pay more.
But if you’ve been there for years, you are likely locked into a cheaper contract. (Landlords sometimes also reward people who sign long-term leases with lower rent.)
The price isn’t based just on cost, and market conditions can drastically alter it. The landlord is balancing several factors, and the bottom line is they want to make as much as they can on their property.
Some aren’t sparing even their existing tenants. “Renters who originally received pandemic pricing are now experiencing steep rent increases at renewal – sometimes upward of 40%,” Allia Mohamed, CEO of openigloo, which allows renters in New York City to review landlords, told CNBC. “I’m amazed this is legal.”
“When it comes to how much a landlord can raise rent, anything flies,” said Robert Pellegrini, president of PK Boston, a real estate and collections law firm with offices in the Greater Boston area. “There are no rules, and it’s totally at their discretion.” Except, of course, if you’re living in a rent-stabilized or rent-controlled apartment, in which case there are strict government provisions in place.
@cal_cifer_2.0 Can they do that?! #badlandlord#rentingproblems#inflation#monopoly#landlordsfromhell♬ original sound – Callie 2.0
Sadly, Callie’s neighbor is just one of many who find themselves in this exact situation. Renters looking for new homes all across the United States are facing dizzying double-digit rent increases. However, you probably wouldn’t get that from the official federal tally of inflation data.
In the last eight months, the rate of change in annual rental costs for new tenants has more than doubled, reaching its highest level on record, according to data from the Bureau of Labor Statistics (BLS) reviewed by The Times. (The data isn’t in the public domain.)
In its latest consumer price index inflation report, BLS said that annual inflation in shelter costs stood at 5.4% in May, which was the highest level since 1991. That figure is a weighted average meant to reflect the rate of inflation affecting new and continuing renters and homeowners alike.
But the non-public numbers show a gulf between the prevailing conditions affecting those who moved residences and those who didn’t. Annual rental costs for new tenants jumped from 4.3% in July 2021 to 11.1% in March 2022. For existing tenants, on the other hand, inflation was lower and grew at a slower pace over the same period, increasing from 1.5% to 2.7%. For residents of owner-occupied units, the trend was similar.
The fact that existing tenants — those who are renewing their leases instead of moving into a new place — pay considerably less might suggest that the cost of housing will continue to climb.
With housing representing both the biggest contributor to core inflation and a lagging indicator, the recent escalation of rents points to overall inflation continuing to rise as well, even as it shows signs of retreating in other sectors.
People sided with the woman, criticizing today’s renting market
Some even think you should never disclose your rent
Many also pointed out that while this sounds sad, it’s absolutely legal and landlords have the right to set the price
And defended the landlords
To whom Callie had this response
Image credits: cal_cifer_2.0
She also responded to those saying her neighbor should move out
@cal_cifer_2.0 Reply to @chellbarlet It’s WAY more complicated than that 😳 #rentalmarket#housingcrisis#homelessness#homelessnessawareness#generationalpoverty#cycleofpoverty♬ original sound – Callie 2.0
It really bugs me that we've be taught to not talk about money. We're not allowed to know how much a co-worker makes or how much a neighbour pays in rent, so the people in charge can do unfair things without being called out on!
When i was a low-level manager. Even though it was NOT in my job description, i developed a new system and saved them thousands of dollars. At my two year evaluation I got a big pat on the back, a "you're awesome", a plastic plaque, and a 13 CENT hourly increase. I was instructed not to talk to anyone about my salary. So I made a huge sandwichboard and hung it around my neck. Front and back. "Administration says I'm awesome. I got a plastic plaque. And a 13 CENT raise. So now i make $13.33 an hour. Impressive, right? Management told me I can't *talk* about it. Guess they're as ashamed as I am." MY employees loved it.
Load More Replies..."Her neighbour should move out"... -- Yeah, and find the exact same square footage in a worse location for $200 more than what she's paying now. -- has the poster NOT checked rental postings since she moved in? Her neighbour knew what she would be paying when she moved in. If she wanted it for less, she could have made a counter offer (which likely would have been refused), or kept looking.
Right. It's the housing market. Rent prices are directly effected by real estate prices, unfortunately. Inflation is up. Prices for everything have gone up. It's more expensive to fix things because materials cost more. 40% increase overall is a little much, though. Everybody charges what they can get.
Load More Replies...Rent is out of hand and as another poster said, a house payment is almost always lower than renting a similar space. That didn't used to be true. I find it understandable on one hand and somewhat predatory on the other that people with low credit scores pay more in rent--the very same people who can't get a mortgage or at least an affordable rate because of their low credit score. Talk about catch 22. And off topic but what's the deal with a low credit score meaning higher car insurance premiums? If people don't pay, they get canceled immediately (not like a down time to evict someone) and I've never seen any data proving that being good with money or having a good job makes you a better driver. I don't think there's any correlation between the 2.
Exactly. Shouldn't your driving record have a factor in car insurance premiums? I can understand having to pay a little extra because you have bad credit but not having any credit is nonsense. I stopped using credit cards and now I have no credit so can't get credit. WTF?
Load More Replies...Well it has to do with the fact she's been living there for years. I've lived in my one bedroom for 7, I pay $1230, and my province has a cap on the increase each year, people just moving in pay $1500 for the same apartment
It's funny (more sad) to read "It's his house he can ask as much as he wants." Luckily here in the Netherlands you can't be landlord without a whole bunch of rules. The rent will depend on the state of the house. Of course there are increases because of the state we are in now. But if a tenant feels he/she is paying too much she can ask for (legal) advise for free and if indeed the landlord asks way too much than it's value, they will knock on his door. Here tenants are protected. After said all this, doesn't mean prices are ridiculously high and still a lot of people pay way too much of what it should be worth. Good times.
That's capitalism. People think they're entitled to screw other people over simply because they can. It's a sad commentary on humanity isn't it?
Load More Replies...Yes expenses rise but not to the point where a $600 rental jumps to $1,750. Some blame goes to Zillow for buying up thousands of homes at the start of the pandemic, some goes to teleworkers leaving big city life for smaller ones and the biggest blame goes to flippers buying up homes and in most cases doing a little cleaning and painting and putting it up for $100K more than what they paid. House flipping shows created a nightmare for the general public in that it gave everyone the idea they could do it.
I understand some increase because of inflation but this just pure greed. That's almost half of a year's rent. You just can't justify that.
Load More Replies...Yes, because it is such a crime to reward long term tenants while charging a current market value to new individuals. Does no one realize what it's like to be a property owner? Every time you rent, to a certain extent you are gambling that they will not do damage, cause problems, default on rent and not pay for months while you go through the eviction process. Yes, it's such a crime to reward long term tenants that have proven they are respectful and take care of your property.
Boofnhoo. Doesn't mean the new tenants won't be good ones either. Shove that fn "whataboutism" up your fn âss and stop making excuses for unnecessary greedy fn price gouging.
Load More Replies...My husband and I were landlords in that we rented the first floor of our warehouse. We lived in/used the rest of it. We probably did our renters a disservice in that we didn't charge anywhere near what the market value was, but we figured screw it, and only charged around $400 in the very early 90s, until 2014 when we raised it $25 because we couldn't afford to keep paying the water bill for the entire building, including their water bills. (Inflation!) We were good landlords, and the total we raised the rent was by $50 since the early 90s. When we finally sold the place, it was after years of having it up for sale, which of course, they knew about. We figured that the tent was low enough so that if they wanted to move out, they could (Hopefully!) save enough money to have what they needed to move into a different apartment. Other places were renting studios for over $1000 a month, and that was WAY before we sold it, back in the late 90s. They ended up staying for around 15 years!
Continued: We didn't do late fees; they'd let us know if the rent might be late. When we had to raise it by $25 again, it topped out at $450, and we never raised it again. We only did so in the first place because our city raised the taxes by over 300%, and we really couldn't afford to take it all on ourselves. The extra $100 (total from both) a month helped pay for that. We were right upstairs, so were able to respond to any complaints ASAP. (Very, very few of those, fortunately) We just wanted to be able to cover the costs of running the building and renting it out. Sure, we could've charged a *lot* more; we had offers for over $1200 each, it's not like we couldn't have gotten more money. $2400 income for renting out two apartments instead of $850 made financial sense for us; it comes out to $18,600 a year! That's a LOT of friggin' money! But how can you do that to someone? It turns out that we couldn't, so we didn't. We were lucky to have such loyal tenants!
Load More Replies...An established renter who pays on time and doesn’t damage the place has value and will often get a lower rent or smaller rent increases than a new tenant paying market. If this new tenant doesn’t pay their rent, the landlord will lose thousands but still has all their expenses. Op and this new renter. should be comparing what she pays to the market for a similar apartment.
In defense of landlords and rising rents, have you looked at the prices of construction materials lately? A 4x8 sheet of plywood is approaching $100 here. 2 years ago it was less than 40. PVC pipe for plumbing, electrical wiring and boxes for outlets and such are all going up. The interior and storm doors we selected for our back door--so good quality but not fancy- went up $100 EACH in less than a year. A simple renovation (NOT remodel) of a very small laundry room was hundreds of dollars more from the time we priced it until we completed another project and could actually do it. Every repair or update that a landlord does is costing him/her exponentially more.
Not sure why your comment was down voted. Repairs and materials cost enough before the pandemic and now it costs even more. My last landlords had to deal with that and they aren't a big leasing company, just a couple of guys. I moved from a basement studio apartment 7 years ago to an apartment in a house that was above the same landlords. The rent was only a little more than the basement apartment and they were great landlords. I always paid my rent on time and left the place so that they didn't have to do anything and it was move in ready for the next tenant. Here's what happened to that place a year after I moved out. A guy moved in and in the six years he was there he trashed that place. It had to be completely gutted and I mean completely! Flooring, ceiling, drywall, sinks, cabinets, toilet, bathtub and even appliances. Nothing was salvageable. It took months because of supply chain issues and they lost 6 months of rental income while still having to pay a mortgage on top of the cost of the reno.
Load More Replies...It really bugs me that we've be taught to not talk about money. We're not allowed to know how much a co-worker makes or how much a neighbour pays in rent, so the people in charge can do unfair things without being called out on!
When i was a low-level manager. Even though it was NOT in my job description, i developed a new system and saved them thousands of dollars. At my two year evaluation I got a big pat on the back, a "you're awesome", a plastic plaque, and a 13 CENT hourly increase. I was instructed not to talk to anyone about my salary. So I made a huge sandwichboard and hung it around my neck. Front and back. "Administration says I'm awesome. I got a plastic plaque. And a 13 CENT raise. So now i make $13.33 an hour. Impressive, right? Management told me I can't *talk* about it. Guess they're as ashamed as I am." MY employees loved it.
Load More Replies..."Her neighbour should move out"... -- Yeah, and find the exact same square footage in a worse location for $200 more than what she's paying now. -- has the poster NOT checked rental postings since she moved in? Her neighbour knew what she would be paying when she moved in. If she wanted it for less, she could have made a counter offer (which likely would have been refused), or kept looking.
Right. It's the housing market. Rent prices are directly effected by real estate prices, unfortunately. Inflation is up. Prices for everything have gone up. It's more expensive to fix things because materials cost more. 40% increase overall is a little much, though. Everybody charges what they can get.
Load More Replies...Rent is out of hand and as another poster said, a house payment is almost always lower than renting a similar space. That didn't used to be true. I find it understandable on one hand and somewhat predatory on the other that people with low credit scores pay more in rent--the very same people who can't get a mortgage or at least an affordable rate because of their low credit score. Talk about catch 22. And off topic but what's the deal with a low credit score meaning higher car insurance premiums? If people don't pay, they get canceled immediately (not like a down time to evict someone) and I've never seen any data proving that being good with money or having a good job makes you a better driver. I don't think there's any correlation between the 2.
Exactly. Shouldn't your driving record have a factor in car insurance premiums? I can understand having to pay a little extra because you have bad credit but not having any credit is nonsense. I stopped using credit cards and now I have no credit so can't get credit. WTF?
Load More Replies...Well it has to do with the fact she's been living there for years. I've lived in my one bedroom for 7, I pay $1230, and my province has a cap on the increase each year, people just moving in pay $1500 for the same apartment
It's funny (more sad) to read "It's his house he can ask as much as he wants." Luckily here in the Netherlands you can't be landlord without a whole bunch of rules. The rent will depend on the state of the house. Of course there are increases because of the state we are in now. But if a tenant feels he/she is paying too much she can ask for (legal) advise for free and if indeed the landlord asks way too much than it's value, they will knock on his door. Here tenants are protected. After said all this, doesn't mean prices are ridiculously high and still a lot of people pay way too much of what it should be worth. Good times.
That's capitalism. People think they're entitled to screw other people over simply because they can. It's a sad commentary on humanity isn't it?
Load More Replies...Yes expenses rise but not to the point where a $600 rental jumps to $1,750. Some blame goes to Zillow for buying up thousands of homes at the start of the pandemic, some goes to teleworkers leaving big city life for smaller ones and the biggest blame goes to flippers buying up homes and in most cases doing a little cleaning and painting and putting it up for $100K more than what they paid. House flipping shows created a nightmare for the general public in that it gave everyone the idea they could do it.
I understand some increase because of inflation but this just pure greed. That's almost half of a year's rent. You just can't justify that.
Load More Replies...Yes, because it is such a crime to reward long term tenants while charging a current market value to new individuals. Does no one realize what it's like to be a property owner? Every time you rent, to a certain extent you are gambling that they will not do damage, cause problems, default on rent and not pay for months while you go through the eviction process. Yes, it's such a crime to reward long term tenants that have proven they are respectful and take care of your property.
Boofnhoo. Doesn't mean the new tenants won't be good ones either. Shove that fn "whataboutism" up your fn âss and stop making excuses for unnecessary greedy fn price gouging.
Load More Replies...My husband and I were landlords in that we rented the first floor of our warehouse. We lived in/used the rest of it. We probably did our renters a disservice in that we didn't charge anywhere near what the market value was, but we figured screw it, and only charged around $400 in the very early 90s, until 2014 when we raised it $25 because we couldn't afford to keep paying the water bill for the entire building, including their water bills. (Inflation!) We were good landlords, and the total we raised the rent was by $50 since the early 90s. When we finally sold the place, it was after years of having it up for sale, which of course, they knew about. We figured that the tent was low enough so that if they wanted to move out, they could (Hopefully!) save enough money to have what they needed to move into a different apartment. Other places were renting studios for over $1000 a month, and that was WAY before we sold it, back in the late 90s. They ended up staying for around 15 years!
Continued: We didn't do late fees; they'd let us know if the rent might be late. When we had to raise it by $25 again, it topped out at $450, and we never raised it again. We only did so in the first place because our city raised the taxes by over 300%, and we really couldn't afford to take it all on ourselves. The extra $100 (total from both) a month helped pay for that. We were right upstairs, so were able to respond to any complaints ASAP. (Very, very few of those, fortunately) We just wanted to be able to cover the costs of running the building and renting it out. Sure, we could've charged a *lot* more; we had offers for over $1200 each, it's not like we couldn't have gotten more money. $2400 income for renting out two apartments instead of $850 made financial sense for us; it comes out to $18,600 a year! That's a LOT of friggin' money! But how can you do that to someone? It turns out that we couldn't, so we didn't. We were lucky to have such loyal tenants!
Load More Replies...An established renter who pays on time and doesn’t damage the place has value and will often get a lower rent or smaller rent increases than a new tenant paying market. If this new tenant doesn’t pay their rent, the landlord will lose thousands but still has all their expenses. Op and this new renter. should be comparing what she pays to the market for a similar apartment.
In defense of landlords and rising rents, have you looked at the prices of construction materials lately? A 4x8 sheet of plywood is approaching $100 here. 2 years ago it was less than 40. PVC pipe for plumbing, electrical wiring and boxes for outlets and such are all going up. The interior and storm doors we selected for our back door--so good quality but not fancy- went up $100 EACH in less than a year. A simple renovation (NOT remodel) of a very small laundry room was hundreds of dollars more from the time we priced it until we completed another project and could actually do it. Every repair or update that a landlord does is costing him/her exponentially more.
Not sure why your comment was down voted. Repairs and materials cost enough before the pandemic and now it costs even more. My last landlords had to deal with that and they aren't a big leasing company, just a couple of guys. I moved from a basement studio apartment 7 years ago to an apartment in a house that was above the same landlords. The rent was only a little more than the basement apartment and they were great landlords. I always paid my rent on time and left the place so that they didn't have to do anything and it was move in ready for the next tenant. Here's what happened to that place a year after I moved out. A guy moved in and in the six years he was there he trashed that place. It had to be completely gutted and I mean completely! Flooring, ceiling, drywall, sinks, cabinets, toilet, bathtub and even appliances. Nothing was salvageable. It took months because of supply chain issues and they lost 6 months of rental income while still having to pay a mortgage on top of the cost of the reno.
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