“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.
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"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.
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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?
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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?
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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.
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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.
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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!
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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... I cannot understand why this is confusing. OP moved in THREE years ago—markets change. Utilities, repair costs, and taxes and insurance costs increase. It would be illogical and financially impossible to charge the same rent to a new tenant today that they charged to a new tenant that long ago.
Inflation hits landlords too. During the pandemic, there were millions who couldn't pay their rent for months, but the landlord had no choice. He had to pay so others could live for free. Now with intrest rates and property assessments going up, y'all can expect to pay more for rent. Don't like it? Move back with Mom and Dad.
It's hilarious that people hold on to the naive idea everything in life is always "fair". Should it be in an ideal world? Okay yes. Is this an ideal world? No. It is flawed, unbalanced, and imperfect. Expecting otherwise is just setting yourself up for disappointment. Live within your means and change your circumstances if you don't like them. Don't expect the world will bend to suit you. It won't.
Notice how speaking truth gets your comment down voted? And people wonder why things are the way they are.
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Leasing companies use programs that determine the amount according to the day and the "current market". The last place i rented rents fluctuated hundreds of dollars depending on the day you signed the lease. When we signed it was $1395. If I signed it the next day it would have been $1495. If I could have waited 6 days I could have leased it for $1295. But no guarantee the apartment would still be available by then. It's all a f*****g scam.
My father explained to me, when I was 11 years old, "paying rent only meant YOU we're paying someone else's mortgage". Hence, I've only bought my homes - since my 20th birthday. I'm not wealthy, and not quite poor, but my money has mostly been spent wisely. My monthly payments are far lower than most people spend on rent, and they always will be. If I were to rent out my house it would easily be 3 times the cost of my actual mortgage. Also, the upkeep, land, and maintenance would fall on me for the most part. Th
My dad taught me the same lesson, but his words were, "Paying rent is just putting money in someone else's pocket. " He did include the caveat that there are some valid reasons to rent. If you're not in the least bit handy, you'll have to pay someone to do every single repair, regular maintenance and upkeep. This can run into real money and that's assuming you can find a skilled person to do things on a timely basis...sometimes on an emergency basis. You'd also better know a bit about electricity, plumbing, construction, painting, heat and air and on and on to make sure you're not funding someone's second vacation home. Then there's the discipline required to make sure not only your mortgage is paid but that you've got a big emergency fund for those repairs and upkeep, months with no tenants or no pays and ultimately you have to be able to keep the utilities on. Even if the tenant is supposed to pay, if they don't, you're the one with frozen busted pipes.
Load More Replies... Sorry, if you want to rent MY house, you pay my price! If you don’t like that then BUY your OWN house. I have every right to make a profit as it was MY money put at risk to purchase the house. Too expensive for you, then find somewhere else to stay.
Wow! Are all these responses from landlords? Why are so many people instantly claiming that this is legal without knowing anything about the neighbor? This very well could be a case of DISCRIMINATION, which is NOT legal. We know the 3 yr tenant's lower rent isn't due to being there before the rate increase because she said her rent HAS increased (about $100. each time she renewed). The idea that it's low due to some kind of reward for being a good tenant is ridiculous. I agree that there may be an issue like having a pet or something, but an extra charge for that should be noted in the lease. It would be best to disregard anyone claiming to know the legality of this situation without knowing all the details. https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview
It's quite common to increase rent less for long term tenants than you would for an empty space with a new tenant. The fact that you find this ridiculous means that you really have no idea how valuable a returning customer can be to a business (which is essentially what a renter is to a landlord). Trust and loyalty in business is HUGE, no matter what kind of business it is. High turnover rates in rentals can be a major loss for a landlord, so a renter that you can rely on to be a good steward of their space and renew each year so that there is no gaps in rent being generated, or expenses being incurred by having to renew the interior of a rental after even a good tenant has caused wear and tear on a space is something that can save a landlord alot of money, and so they often pass that savings on to their good tenants. This prompts the tenant to remain a renter long term by keeping their rent below the market rate so that leaving will cost more than staying, ensuring a steady income.
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After what landlords have gone through the last 2 years im not surprised.
Prices have been rising for everybody on everything! Those in charge of our lives need to stop the insanity!
doesnt have her contract a duration? Probably when it finalizes she (or the new tenant) will pass to pay more than the neighbor is paying now.
Some places are rent controlled, so it can only go up a certain percentage every year. Other places get around that by adding extra fees for services that were previously included in the rent. For other places that want to raise rent higher than they are allowed, sometimes they'll just refuse to renew the lease.
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Everyone knows rent jumps more from tenant to tenant than from a renewed contract. It's market price vs legal percent increase. I have no lost love for landlords, I've never met a nice and responsible one (I know they exist but most people I know have a hard time with their landlords) but that's a well known fact and she knew the price when she moved in. I hate my rent increase bc I actually pay for utilities, repairs and property tax myself, but that is the reason my rent is low. I just think it's silly my landlady can increase the rent as my costs on the apartment she owns go up. But where I live we don't have good laws regarding this stuff
My rent in 2020 was 2000. Now they want 3500. Legal, sure. Disgusting? Absolutely !
Looks like someone is going to be given her notice to leave so the landlord can get someone else in to pay the same as the neighbour. Shouldn't have bragged about it over social media, as a landlord I would be asking you to leave.
As someone who sold their house recently anticipating renting in the same area for around same per month (disabled husband, we can no longer maintain, physically or financially) 3 months later and we cannot find anything less than 4x times what mortgage was. Fortunately, an Army buddy of my husband has a "cabin" we are staying in paying utilitie only. BUT it's 200 miles from "home" and is temporary.
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I’m sure the landlord will now increase her rent to market rate now that she’s exposed this! Dim s**t. She wasn’t paying attention that landlords have even prohibited from raising rent during Covid. Also since the obscenely low interest rate on home loans has resulted in increased rent everywhere. Everyone everywhere who rents is paying more and now she will to.
Landlords have had it bad for a couple few years now because of horrible government policy and lazy renters taking advantage. I can't imagine how much they lost during the plandemic. If you want to do something about it stop complaining and vote politicians with policies that will help us and not vote for the so called popular (media) politician. Wake up people.
In 2006, I bought a condo. That was right at the height of the housing market. When I bought the condo, it was my primary residence. But, after the economy crasehed in 2007 I found myself out of work. My condo was also worth less than 1/2 of what I paid for it. After a series of jobs with horrible bosses, I ended up taking a job in a different state. At this point, I had 2 options: (1) quit paying my mortgage and walk away from the property or (2) rent it out. I felt like walking away would add additional damage to an already distressed economy and I could afford (barely) make payments on the condo. I had a tenant move in in 2010, and still lives there. I've raise rent a total of $50.00 since he moved in. I'm sure there are people renting units in the same condo complex that are paying hundreds of dollars more than my tenant. After mortgage payments, HOA payments, and management fees (to the company that manages the property), I break even.
I haven't raised the rent because I don't want to lose this tenant. I know a couple people in the same situation as me who've had to spend $10 k (US) repairing their property after a bad tenant moved out. As it is in a condominium complex, I don't have to pay for maintaining the roof, or anything external to my actual unit. I look at the property as a long term investment. And, I will note that I am not wealthy. I make less than 100 k per year, and rent the property where I currently live. There are alot of scummy landlords out there (particularly although the corporations who bought cheap property after the market crashed in 2007), but, there also are good landlords who take care of their tenants, but, rely on that income to pay their bills (I would put my current landlord in that category).
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So many things go into rental prices, even in the same building. For a house I can think of location, lot size, length of tenancy, length of lease, amenities, parking, view, even landscaping.
As a landlord of a condominium, the insurance premium increased 108% which equates to a 25% increase in monthly maintenance fees for everyone. It's easy to blame "greedy" insurance companies but truth is, rebuild costs have skyrocketed and insurance is a lot like socialism, everyone pays in but not everyone cashes out . Combine higher insurance with increased property taxes and repair costs, most landlords are making less, not more, than we did under President Trump. Voting for Democrat socialists has consequences. If you think this is over, it's just begun. President Brandon is still printing money like it grows on trees and expect at least double your rent in 5 more years. Our leaders are destroying this country intentionally. Vote conservative if you want lower rent and more money in your wallet.
I have been in my apt 16 yrs. We have a rent reduced unit because it severely flooded in 2008. My rent is $800 less than the exact unit above me. That renter moved in last year & is a friend. Our state limits tent increases by year so having stayed in our unit 16yrs by law they can't raise our rent more than a specific percentage per year but empty units can go up to meet market value. At this point we aren't planning on moving because if we did we'd have to find a place at market value a heck of a lot higher in rent than what we have now.
Ppl asking if this legal or askinghave extremely limited experience with finance or running business. Housing inflation lags because ppl often are locked into lease for 6mnths-1yr this means the landlord is locked in not just the tenant. So if a landlord has 10 units for 5 we're locked in right before inflation at 1k but the other 5 expired or are new after inflation are now locked in at 1200 that is. 20% increase but inflation is going to read that as 10% because it is avg against the other 5 locked in at the old rate. Secondly prices are out of control bc expenses are out of control. If the heat goes out in that buildingthe cost of fixing it is double what it was 2yrs ago. This is what happens when the entire world produces essentially nothing for 2yrs. Resources become scarce so only the rich have it and everyone else dies
People don't want to understand circumstances. If the property mortgage is already paid, landlords will charge whatever they are comfortable with. But if the property is newly mortgaged and a landlord is expecting an interest rate hike- believe that they will make different decisions. Not all landlords are greedy, some just have bills to pay.
Someone needs to google supply and demand... Also one of the greatest military powers in the world is currently in a war, affecting inflation for the entire world... The owner is probably LOSING money on the older contracts right now... Google house prices or rent prices in Canada, or any other country, you will see the same thing. Gosh some people are entitled morons...
Renter for 36 years. Four different homes, all individual homeowners. For 3 of them, the rental home was a retirement investment. The other was saving for his children's college. We established ourselves as good tenants in the first house (4 years). After that, we proposed our own terms. Negotiated starting rent equivalent to their costs + 10% for unexpected, urgent costs, + 10% current profit. We insisted on a two-year lease, plus a handyman to do a "walkthrough" every 6 months for non-urgent repairs. If owner's costs increased, so did our next lease.NO WAY would we buy a home. Been there. Done that. Total bank scam. Ownership (going into hundreds of thousands in debt KNOWING real estate bubbles are cyclical & a TOTAL risk) is considered "responsible". B******t. Renting is living within your current means without risking your entire future. Home ownership is a total SCAM. Most buyers refinance and suck the equity out. Most don't "BUY" it. They POSSESS it. Responsible? Not.
I would argue with this heavily. Having a mortgage can be a loss if you buy at the wrong time, or it can be a godsend if you buy at the right time. It sounds like you invested in a home somewhere in the peak of the real estate market cycle and got burned. Buying during a buyers market can see you saving thousands or tens of thousands each year compared to rent depending on where you live after even just a few years. My mortgage is a little below $1200 a month. If I sold and tried to rent my own home afterwards, I can expect my rent to be $2000-2200/mo. Which of those sounds more like a scam? Secondly. At the end of 30yrs paying a mortgage, my payments disappear. Renting lasts until you die. Again... renting sounds more like a scam as long as you buy smart.
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The laws are the reason *why* the prices are so high. A landlord can't kick someone out, they can't raise rent on existing tenets, and so the only thing they can do is increase rent on new tenets. Also, as a side note, credit does play a large role in the amount that one is charged. As well as other risk factors. But leaving those out makes a better story for a group of people who hates landlords.
I'm in Austin, Texas and have to admit... Sluts get way cheap rent. Why not use what the Lord gave you? We're the new Babylon, the new Sodom and Gomorrah, filled with demolished Delilah's. <3
Go buy an apartment and rent the units for what you believe is a fair price, put ypur moneybwhere your mouth is and become a landlord, show us some non-greed and rent a house out for less than the mortgage. Put up or shut up.
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.
Load More Replies... I cannot understand why this is confusing. OP moved in THREE years ago—markets change. Utilities, repair costs, and taxes and insurance costs increase. It would be illogical and financially impossible to charge the same rent to a new tenant today that they charged to a new tenant that long ago.
Inflation hits landlords too. During the pandemic, there were millions who couldn't pay their rent for months, but the landlord had no choice. He had to pay so others could live for free. Now with intrest rates and property assessments going up, y'all can expect to pay more for rent. Don't like it? Move back with Mom and Dad.
It's hilarious that people hold on to the naive idea everything in life is always "fair". Should it be in an ideal world? Okay yes. Is this an ideal world? No. It is flawed, unbalanced, and imperfect. Expecting otherwise is just setting yourself up for disappointment. Live within your means and change your circumstances if you don't like them. Don't expect the world will bend to suit you. It won't.
Notice how speaking truth gets your comment down voted? And people wonder why things are the way they are.
Load More Replies... Leasing companies use programs that determine the amount according to the day and the "current market". The last place i rented rents fluctuated hundreds of dollars depending on the day you signed the lease. When we signed it was $1395. If I signed it the next day it would have been $1495. If I could have waited 6 days I could have leased it for $1295. But no guarantee the apartment would still be available by then. It's all a f*****g scam.
My father explained to me, when I was 11 years old, "paying rent only meant YOU we're paying someone else's mortgage". Hence, I've only bought my homes - since my 20th birthday. I'm not wealthy, and not quite poor, but my money has mostly been spent wisely. My monthly payments are far lower than most people spend on rent, and they always will be. If I were to rent out my house it would easily be 3 times the cost of my actual mortgage. Also, the upkeep, land, and maintenance would fall on me for the most part. Th
My dad taught me the same lesson, but his words were, "Paying rent is just putting money in someone else's pocket. " He did include the caveat that there are some valid reasons to rent. If you're not in the least bit handy, you'll have to pay someone to do every single repair, regular maintenance and upkeep. This can run into real money and that's assuming you can find a skilled person to do things on a timely basis...sometimes on an emergency basis. You'd also better know a bit about electricity, plumbing, construction, painting, heat and air and on and on to make sure you're not funding someone's second vacation home. Then there's the discipline required to make sure not only your mortgage is paid but that you've got a big emergency fund for those repairs and upkeep, months with no tenants or no pays and ultimately you have to be able to keep the utilities on. Even if the tenant is supposed to pay, if they don't, you're the one with frozen busted pipes.
Load More Replies... Sorry, if you want to rent MY house, you pay my price! If you don’t like that then BUY your OWN house. I have every right to make a profit as it was MY money put at risk to purchase the house. Too expensive for you, then find somewhere else to stay.
Wow! Are all these responses from landlords? Why are so many people instantly claiming that this is legal without knowing anything about the neighbor? This very well could be a case of DISCRIMINATION, which is NOT legal. We know the 3 yr tenant's lower rent isn't due to being there before the rate increase because she said her rent HAS increased (about $100. each time she renewed). The idea that it's low due to some kind of reward for being a good tenant is ridiculous. I agree that there may be an issue like having a pet or something, but an extra charge for that should be noted in the lease. It would be best to disregard anyone claiming to know the legality of this situation without knowing all the details. https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview
It's quite common to increase rent less for long term tenants than you would for an empty space with a new tenant. The fact that you find this ridiculous means that you really have no idea how valuable a returning customer can be to a business (which is essentially what a renter is to a landlord). Trust and loyalty in business is HUGE, no matter what kind of business it is. High turnover rates in rentals can be a major loss for a landlord, so a renter that you can rely on to be a good steward of their space and renew each year so that there is no gaps in rent being generated, or expenses being incurred by having to renew the interior of a rental after even a good tenant has caused wear and tear on a space is something that can save a landlord alot of money, and so they often pass that savings on to their good tenants. This prompts the tenant to remain a renter long term by keeping their rent below the market rate so that leaving will cost more than staying, ensuring a steady income.
Load More Replies... After what landlords have gone through the last 2 years im not surprised.
Prices have been rising for everybody on everything! Those in charge of our lives need to stop the insanity!
doesnt have her contract a duration? Probably when it finalizes she (or the new tenant) will pass to pay more than the neighbor is paying now.
Some places are rent controlled, so it can only go up a certain percentage every year. Other places get around that by adding extra fees for services that were previously included in the rent. For other places that want to raise rent higher than they are allowed, sometimes they'll just refuse to renew the lease.
Load More Replies... Everyone knows rent jumps more from tenant to tenant than from a renewed contract. It's market price vs legal percent increase. I have no lost love for landlords, I've never met a nice and responsible one (I know they exist but most people I know have a hard time with their landlords) but that's a well known fact and she knew the price when she moved in. I hate my rent increase bc I actually pay for utilities, repairs and property tax myself, but that is the reason my rent is low. I just think it's silly my landlady can increase the rent as my costs on the apartment she owns go up. But where I live we don't have good laws regarding this stuff
My rent in 2020 was 2000. Now they want 3500. Legal, sure. Disgusting? Absolutely !
Looks like someone is going to be given her notice to leave so the landlord can get someone else in to pay the same as the neighbour. Shouldn't have bragged about it over social media, as a landlord I would be asking you to leave.
As someone who sold their house recently anticipating renting in the same area for around same per month (disabled husband, we can no longer maintain, physically or financially) 3 months later and we cannot find anything less than 4x times what mortgage was. Fortunately, an Army buddy of my husband has a "cabin" we are staying in paying utilitie only. BUT it's 200 miles from "home" and is temporary.
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I’m sure the landlord will now increase her rent to market rate now that she’s exposed this! Dim s**t. She wasn’t paying attention that landlords have even prohibited from raising rent during Covid. Also since the obscenely low interest rate on home loans has resulted in increased rent everywhere. Everyone everywhere who rents is paying more and now she will to.
Landlords have had it bad for a couple few years now because of horrible government policy and lazy renters taking advantage. I can't imagine how much they lost during the plandemic. If you want to do something about it stop complaining and vote politicians with policies that will help us and not vote for the so called popular (media) politician. Wake up people.
In 2006, I bought a condo. That was right at the height of the housing market. When I bought the condo, it was my primary residence. But, after the economy crasehed in 2007 I found myself out of work. My condo was also worth less than 1/2 of what I paid for it. After a series of jobs with horrible bosses, I ended up taking a job in a different state. At this point, I had 2 options: (1) quit paying my mortgage and walk away from the property or (2) rent it out. I felt like walking away would add additional damage to an already distressed economy and I could afford (barely) make payments on the condo. I had a tenant move in in 2010, and still lives there. I've raise rent a total of $50.00 since he moved in. I'm sure there are people renting units in the same condo complex that are paying hundreds of dollars more than my tenant. After mortgage payments, HOA payments, and management fees (to the company that manages the property), I break even.
I haven't raised the rent because I don't want to lose this tenant. I know a couple people in the same situation as me who've had to spend $10 k (US) repairing their property after a bad tenant moved out. As it is in a condominium complex, I don't have to pay for maintaining the roof, or anything external to my actual unit. I look at the property as a long term investment. And, I will note that I am not wealthy. I make less than 100 k per year, and rent the property where I currently live. There are alot of scummy landlords out there (particularly although the corporations who bought cheap property after the market crashed in 2007), but, there also are good landlords who take care of their tenants, but, rely on that income to pay their bills (I would put my current landlord in that category).
Load More Replies... So many things go into rental prices, even in the same building. For a house I can think of location, lot size, length of tenancy, length of lease, amenities, parking, view, even landscaping.
As a landlord of a condominium, the insurance premium increased 108% which equates to a 25% increase in monthly maintenance fees for everyone. It's easy to blame "greedy" insurance companies but truth is, rebuild costs have skyrocketed and insurance is a lot like socialism, everyone pays in but not everyone cashes out . Combine higher insurance with increased property taxes and repair costs, most landlords are making less, not more, than we did under President Trump. Voting for Democrat socialists has consequences. If you think this is over, it's just begun. President Brandon is still printing money like it grows on trees and expect at least double your rent in 5 more years. Our leaders are destroying this country intentionally. Vote conservative if you want lower rent and more money in your wallet.
I have been in my apt 16 yrs. We have a rent reduced unit because it severely flooded in 2008. My rent is $800 less than the exact unit above me. That renter moved in last year & is a friend. Our state limits tent increases by year so having stayed in our unit 16yrs by law they can't raise our rent more than a specific percentage per year but empty units can go up to meet market value. At this point we aren't planning on moving because if we did we'd have to find a place at market value a heck of a lot higher in rent than what we have now.
Ppl asking if this legal or askinghave extremely limited experience with finance or running business. Housing inflation lags because ppl often are locked into lease for 6mnths-1yr this means the landlord is locked in not just the tenant. So if a landlord has 10 units for 5 we're locked in right before inflation at 1k but the other 5 expired or are new after inflation are now locked in at 1200 that is. 20% increase but inflation is going to read that as 10% because it is avg against the other 5 locked in at the old rate. Secondly prices are out of control bc expenses are out of control. If the heat goes out in that buildingthe cost of fixing it is double what it was 2yrs ago. This is what happens when the entire world produces essentially nothing for 2yrs. Resources become scarce so only the rich have it and everyone else dies
People don't want to understand circumstances. If the property mortgage is already paid, landlords will charge whatever they are comfortable with. But if the property is newly mortgaged and a landlord is expecting an interest rate hike- believe that they will make different decisions. Not all landlords are greedy, some just have bills to pay.
Someone needs to google supply and demand... Also one of the greatest military powers in the world is currently in a war, affecting inflation for the entire world... The owner is probably LOSING money on the older contracts right now... Google house prices or rent prices in Canada, or any other country, you will see the same thing. Gosh some people are entitled morons...
Renter for 36 years. Four different homes, all individual homeowners. For 3 of them, the rental home was a retirement investment. The other was saving for his children's college. We established ourselves as good tenants in the first house (4 years). After that, we proposed our own terms. Negotiated starting rent equivalent to their costs + 10% for unexpected, urgent costs, + 10% current profit. We insisted on a two-year lease, plus a handyman to do a "walkthrough" every 6 months for non-urgent repairs. If owner's costs increased, so did our next lease.NO WAY would we buy a home. Been there. Done that. Total bank scam. Ownership (going into hundreds of thousands in debt KNOWING real estate bubbles are cyclical & a TOTAL risk) is considered "responsible". B******t. Renting is living within your current means without risking your entire future. Home ownership is a total SCAM. Most buyers refinance and suck the equity out. Most don't "BUY" it. They POSSESS it. Responsible? Not.
I would argue with this heavily. Having a mortgage can be a loss if you buy at the wrong time, or it can be a godsend if you buy at the right time. It sounds like you invested in a home somewhere in the peak of the real estate market cycle and got burned. Buying during a buyers market can see you saving thousands or tens of thousands each year compared to rent depending on where you live after even just a few years. My mortgage is a little below $1200 a month. If I sold and tried to rent my own home afterwards, I can expect my rent to be $2000-2200/mo. Which of those sounds more like a scam? Secondly. At the end of 30yrs paying a mortgage, my payments disappear. Renting lasts until you die. Again... renting sounds more like a scam as long as you buy smart.
Load More Replies... The laws are the reason *why* the prices are so high. A landlord can't kick someone out, they can't raise rent on existing tenets, and so the only thing they can do is increase rent on new tenets. Also, as a side note, credit does play a large role in the amount that one is charged. As well as other risk factors. But leaving those out makes a better story for a group of people who hates landlords.
I'm in Austin, Texas and have to admit... Sluts get way cheap rent. Why not use what the Lord gave you? We're the new Babylon, the new Sodom and Gomorrah, filled with demolished Delilah's. <3
Go buy an apartment and rent the units for what you believe is a fair price, put ypur moneybwhere your mouth is and become a landlord, show us some non-greed and rent a house out for less than the mortgage. Put up or shut up.
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