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Unwarranted rent rises

Picture this. Landlord owns over 100 units. Has done so for more than 50 years.
Easily bringing in over one million 800 thousand dollars a year.
Over 50 years, how much would have been accumulated?
Notice of rent rise each year. This time $100 a week.
Anyone out there tell me how the constant rent rises can be justified?
Remember, currently bringing in $1.8 million a year.
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whowasthatmaskedman · 70-79, M
With the case you put forward, of course those rises are brutal.. And unjustified. But the long established and private individual is not always the case.. The negative gearing facility currently available in this country means that a person can borrow to build or buy a rental property and technically pay more on the mortgage than the rent generates, writing down income from another source to reduce tax. If mortgage rates rise, the owners costs go up. And they price rental accordingly. Before we scream how thats not the tenants problem, remember that without the investor, the rental property would not exist at all.
Also, some corporations find it profitable lately to purchase properties for rental, having no plans for cash, or as an expansion that has a high asset base. A director is such a company has a duty to shareholders to push rents up to what the market will pay..
It would be nice if we didnt have Fred Trump type slum lords.. But the fact is we do. In times like these people have to think outside the little boxes.. Dont you think?😷
Gusman · 61-69, M
@whowasthatmaskedman Looking at my case. The landlord built 4 blocks of units totalling 110 units between 1971 and 1974.
Now, without doubt, he would own these units outright.
Yes, outgoings would consume some of the gross income. Accumulating 50 years of rent from 110 units would be a very large amount. Though the rent continues to rise.
Justification for these rises from where I stand cannot be reconciled. 🤷🏻‍♂
I am not sticking up for landlords

Bad tenants that do not pay for long period of time 3,6 9 months no rent being paid

Landlord does have expenses

Water rates
Land Rates
Household insurance
Strata fees - if units or villa
Real estate management fee of 5–12% of weekly rent
What do my property management fees cover
The list of tasks a property manager will do for a landlord includes:

1.advertising the property for rent
2.managing and attending rental property viewings
3.screening tenants, including doing reference checks and reviewing rental history
4.managing the condition report process
5.managing the tenancy agreement signing process and handling questions
6.managing financial accounts for the investment property and providing regular reports
7.inspecting the property on a regular basis
8.organising tradespeople, in negotiation with the landlord, for repairs and maintenance.
9. Letting/Leasing Fee: A one-time fee for finding a new tenant, covering marketing, viewings, and screening, usually costing 1–2 weeks' rent.
DunningKruger · 61-69, M
What you're not considering is how much of the money the landlord brings in goes to maintenance of the property, taxes, insurance and other expenses. You're speaking as if it's all profit, which it isn't.

So, whether the rent increase is justified or not depends upon the how much of what the landlord brings in is profit, and how much his expenses to operate the property have gone up in the current terrible economy. Without knowing those things, we can't really comment on how justified a rent increase is.
meggie · F
My colleague in London had a rise of £500 a month for his tiny 2 bedroom flat
AngelUnforgiven · 51-55, F
You wrote $100 a WEEK. Did you mean a week or a month? I hope that was a typo and that you aren't paying an extra $400 a month on a rental.
Gusman · 61-69, M
@AngelUnforgiven $100 a week. Works out at $430 a month. $5200 divided by 12 is $433.33.
Don’t know a lot about economics but I guess it’s what the market will bear. But holy crap, I grumble at $100 a MONTH increase!
@Gusman Some rentals people are paying a couple of hundreds above the rental market price
Gusman · 61-69, M
@OriginalNedKelly That was the only way they could win at the rental lottery.
Pay above the rate, even if it means there is less disposable income.
@Gusman It is a nightmare for anyone that is renting - sorry to hear about your situation
There is no justification. They just want to squeeze the blood out of us.

Annual rise of rent is ludicrous... but it's all ludicrous. They want to take us back to ancient times when you worked 20 hours a day just to have a place to rest your head.

It's all about keeping us enslaved.
Gusman · 61-69, M
@Magicianzini Yes. Those of us who could not or have not bought a home will end up homeless. And the system does not care.
Evicting people allows Estate Agents and landlords to raise rents even higher.
ninalanyon · 61-69, T
With the vast amount of land available in Australia it should surely be a buyers market?
whowasthatmaskedman · 70-79, M
@ninalanyon While there is megaOoddles of land here, land okayed and developed for real estate development is indeed expensive and in short supply. And because of the land traditionally being available, there isnt a lot of medium and high density housing. Please note that unlike America and much of Europe, most of the population live in about twenty major cities, while the rest of the continent is almost deserted.. So its a question of jobs, schools hospitals and water supply..😷

 
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