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Thread: The rant about rent

  1. #1
    PhillyDancer1982
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    Thumbs down The rant about rent

    Guess what guys? Another year of my lease is up in April, and my rent's new year increase is twice as big as last year's increase. You got that right...starting April, I will officially be a PL stuck paying over $900 for a one-bedroom suburban apartment in a reasonably affordable area(hey, it's not exactly Center City Philly or anything overly posh where I live!). Now can anyone see why I'm so eager to get a small house sometime soon??

    I can easily afford the extra rent hike, but the real issue is, do I want to pay that much money for such a small place that I'll never even own?...no. It's the principle of it. Ugh. Just had to vent and see if anyone else can relate.

    In your opinion, do you think the landlords increased the rent more this year because of the supply & demand of renting, spurred on by the recent mortgage industry subprime collapse? I'm thinking the collapsed mortgage industry has encouraged more people to postpone buying, therefore the landlords know they can get away with raising the rent more. I don't think it's just my landlord doing this, but most of them. If anything, my landlords are very down-to-earth, nice people. I know they're in it to make money, but I don't think they're trying to "scam" us either. But I still don't like paying so much money for a place I'll never own!

    I love my apartment and where I live, but I really can't wait until I get my own little house!

  2. #2
    Banned Melonie's Avatar
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    Default Re: The rant about rent

    IMHO it's a combination of several factors affecting the landlords.

    A - higher property taxes
    B - higher insurance costs
    C - more renters running behind in their rent payments (leaving landlords short of cash)
    D - higher utility costs (not all of which are able to be directly billed to tenants)
    E- higher demand for rental units for the reasons you stated
    F - higher demand for rental units for different reasons i.e. tighter creditworthiness standards and higher interest rates for non-prime mortgage seekers

    In order to truly gage the relative cost of 12*$900=$10800 per year in rent, you also have to add up the non-mortgage related costs of home ownership. Property taxes could run $5000 per year, homeowners insurance could run $2000 per year, etc. There are a lot of areas in the US where the property taxes and insurance rates make renting versus owning a very attractive alternative even if mortgage financing at low interest rates is available.

  3. #3
    PhillyDancer1982
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    Default Re: The rant about rent

    Yes all of those things are very true and I'm sure they contribute to the landlords' reasoning for raising the rent. But do you think that landlords' greed(i.e., knowing that they can easily "get away" with raising rent, due to higher demand for apartments) plays a small part too?

    Either way, I'm really happy that I have a steady "real" job, good credit, and the opportunity to save up a pretty nice down payment in time before house prices go up...I can't wait to get a house! Sure I'll be paying more for a house and I'll have to be conscious of maintenance/repairs/utilities/etc, but overall I think I'll be getting a better bang for my buck if I shop wisely.

  4. #4
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    Default Re: The rant about rent

    Does your rent increase everytime you renew your lease? My rent has been the same for 13 months. I was on a lease that expired in June, and since then, I've been month-to-month (that's the apartment's policy). I would be pissed off if my rent increased every year! It seems like it should go down or something, like a frequent renter's program or something. Reward your loyal renters, right? Whatev.

  5. #5
    Yekhefah
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    Default Re: The rant about rent

    They tried to hike the rent on me and my ex-husband once, from $700 to $750. He went to the complex office and told them he would be happy to stay in the apartment for $700 a month, but if they insisted on hiking the rent then he would use that money for a moving van instead. They left it at $700. Bird in the hand and all that.

  6. #6
    PhillyDancer1982
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    Default Re: The rant about rent

    Yes, they raise rent each year periodically. And yeah now that you mention it, it DOES suck. I moved into this place in late March 2006 and no I hvaen't gotten any frequent renter's incentives yet.

    Dude I can't wait to pay off my car loan and move into a house! Right now I'm paying literally $1400/mo between rent and the minimum on my car payments. I'm planning to pay off the remaining balance on my car loan by Halloween though(paying it off >3yrs early). My dad told me that I should easily be able to find a small house that will cost me a few hundred less than $1400/mo, and that's including mortgage, homeowners insurance, and property taxes(which are relatively cheap in PA if you're outside Philly city limits). So I guess I just have to grin and bear it for a little longer until my car loan's paid off + I have the $18-20,000 saved up for a house down payment(shouldn't take me any more than 1.5-2 yrs to do).

  7. #7
    Banned Melonie's Avatar
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    Default Re: The rant about rent

    ^^^ keep in mind that with the new lending creditworthiness standards, you're also likely going to need a larger down payment than $20k ... because most lenders are now looking for 20% down plus closing costs to write a 'conforming' mortgage loan.

  8. #8
    God/dess Deogol's Avatar
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    Default Re: The rant about rent

    I would simply start checking around for a new place to live. That is quite a hike. My gut feeling is you are paying for one of their financial mistakes. Let them make another mistake with an unproductive property for a while.

    Corporate land lords are famous for automatically raising the rent. I know of people who bounce between two places each renewal time playing the game as needed.

  9. #9
    PhillyDancer1982
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    Default Re: The rant about rent

    I think another reason why my landlords keep raising the rent is because their complex won a "best apartment of Lower ____ County" award for 2007. I know this because they have signs boasting this when you drive through the entrance to the complex.

    My complex is also the 2nd most expensive complex in my town...2nd only to a complex that is owned by THE SAME MANAGEMENT COMPANY, and is more expensive simply because those apartments have garages! By the way, my complex is part of the Kormann Apartments corporation, if that gives you any idea of how expensive it is compared to average complexes.

    To be honest, the reason I moved there is because it seemed like a "good deal" at the time compared to the only other shit choices I had. Here's what my situation was in 2006 when I moved there:
    1) At the time, I was living in a slightly ghetto apartment building in a mediocre-but-going-downhill neighborhood in lower Northeast Philly. My building got bought out by a somewhat negligent slumlord. The only "pro" was that the rent was only $580/mo for my 1bedroom place.

    Because there were some safety issues with the neighborhood and because it's more expensive to live within the city limits of Philly, I had ASTRONOMICAL car insurance rates, costing me $550/mo for one car...yes, you heard me right. The taxes were way higher too.

    So in spring 2006, I moved to my current apartment, which was $300/mo more in rent each month, BUT I saved $300/mo in car insurance and even more in taxes. So basically I was just about breaking even, but I had a nicer quality apartment in a MUCH nicer quality neighborhood.

    2.) You might be wondering why I decided to move to the 2nd most expensive complex in my town, instead of looking for a cheaper apartment. Well sadly, I didn't think I was able to actually GET a lease anywhere else. Why?...I had good credit overall (Fico score in the mid-to-high 600s) but I did have a black mark on my credit from 3-4yrs prior that occured because of a roommate situation in which I was screwed over beyond my control. Because this one black mark concerned a rental situation, a lot of landlords told me that I was ineligible for a lease. I'd had that unfortunate problem in the past, too. Fortunately, the landlords at my current apartment took sympathy to what happened when I explained the details and how it was beyond my control. They saw that I was independent, had good credit otherwise, and commended me for making a lot of money as a dancer(the landlords had a lot of other reliable tenants who were dancers). Therefore, they were one of the few complexes that actually viewed me for the type of person I was...and didn't just cut me short based on a credit report note. That's why I moved there.

  10. #10
    PhillyDancer1982
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    Default Re: The rant about rent

    Quote Originally Posted by Melonie View Post
    ^^^ keep in mind that with the new lending creditworthiness standards, you're also likely going to need a larger down payment than $20k ... because most lenders are now looking for 20% down plus closing costs to write a 'conforming' mortgage loan.
    Yeah I'm aware that I might need more money, but the amount I quoted is not considering the opportunity to work more shifts at my club, get another job on the side, or to find a day job that pays more money, all of which I'm planning to do sometime soon. I am hoping to save more money than that, but I'm not counting on it just because I don't want to count chickens before they hatch.

  11. #11
    AudreyLeigh
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    Default Re: The rant about rent

    How many open units are there in this complex? Because, if there are already say 3 of the same size unit as yours than that gives you leeway to get out of the rent increase. Its better for them to lose, say, $50 a month vs. losing $900 a month. Worst that can happen is they say no...

    My brother did the same. He was renting a 540 sq ft 1/1 in the bay area for $1250 a month. When the lease was up they tried raising the rent to $1475. He went in and said hey, you already have a few empty apartments. Youre gonna have another one. So, he ended up getting to keep it for $1250...

    I dont know about at your place but I can look up online how many apts are available at my place. Or maybe call and ask about your apartment size and ask how many they have... when theyre coming up etc. You never know, they could be raising rent to make up for empty rentals and would screw themselves by pushing you out with an increase.

  12. #12
    God/dess whirlerz's Avatar
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    Default Re: The rant about rent

    Well, I pay lot rent (trailer park) & it goes up every year. We have some 'owners' (they own the trailer) & some renters. Lots of month to month leases, according to a neighbor. It's not really the price of the rent that's an issue for me, but the fact that I'm under the crushing thumb of a 'homeowner's assoc.' They try to f** you out of $ for 'infractions' of their rules, setting fines, etc. I just know I have to get out of here someway, somehow.


    MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP

    -Eartha Kitt

  13. #13
    PhillyDancer1982
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    Default Re: The rant about rent

    ^ I heard that trailer parks have a lot of home association fees and stuff. So I hear you on your concern and I wish you the best of luck in getting out! Besides, what's the point of complying with "home" association crap and paying money for it, when you don't even own the trailer?

  14. #14
    God/dess whirlerz's Avatar
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    Default Re: The rant about rent

    Thanks, sweetie!
    I do own the trailer, just not the land it sits on! So far, I just pay the 'lot rent', but they always seem to be trying to 'add fees' to this or that.
    I wish you the best too, hun!
    Btw, on fortune.com there is some interesting articles on renting/vs owning real estate, & in which cities the market is changing, what per cent & factors, etc.


    MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP

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  15. #15
    Featured Member pixiepower329's Avatar
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    Default Re: The rant about rent

    In my apartment complex it really sucked this year for the people who renewed. They did not get the "new tenant" special, so a tenured tenant was paying 850 for the same thing that a new tenant got for 692.
    !

  16. #16
    AudreyLeigh
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    Default Re: The rant about rent

    Here the exact same townhouse i pay $1670 for (moved in August) my neighbors pay $1585 (moved in Sept) and some people just moved in and their rent is $1515. SAME DAMN LAYOUT. SAME PLACE!

    I guess because its a family place across from a school so those who move June-Aug get screwed because they want the kids to start the new year at the school.... still pisses me off.

  17. #17
    PhillyDancer1982
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    Default Re: The rant about rent

    Quote Originally Posted by pixiepower329 View Post
    In my apartment complex it really sucked this year for the people who renewed. They did not get the "new tenant" special, so a tenured tenant was paying 850 for the same thing that a new tenant got for 692.
    Wow! Proportionately speaking, that situation sucks even more than the one that Audrey Leigh spoke of with her townhouse! Did these "veteran tenants" at least get the "new tenant special" back when they were actually new tenants?...or did they receive no promos at all and this is the first season for it? If so, that would definitely suck. If they got a good deal like that when they first moved in, then maybe it isn't that bad...provided that the new tenants' rent will increase to $850 after the first year/end of the promo period.

  18. #18
    Featured Member pixiepower329's Avatar
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    Default Re: The rant about rent

    Nope... I didn't get any kind of new tenant special. My rent is 815.
    !

  19. #19
    PhillyDancer1982
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    Default Re: The rant about rent

    That's bullshit!! I'm sorry you went through that. You should definitely complain to the landlords and pull the Trump Card(i.e., threaten to move to a more affordable apartment). What they're doing is not fair at all! I've pulled the Trump Card many many times with credit card companies in a successful attempt to get them to lower my interest rate or raise my credit limit(not that I NEED these things, it's just good to know that I have clout with the credit card company, and to feel rewarded for being an ontime-paying customer).

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