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. 🤷🏻‍♂