View Single Post
Old 01-23-2022, 08:29 AM   #23
SAMIAM
Senior Member
 
Join Date: Apr 2004
Location: Moultonborough
Posts: 2,752
Thanks: 284
Thanked 1,541 Times in 525 Posts
Default

Quote:
Originally Posted by TiltonBB View Post
I will respectfully disagree with your business strategy. Your business expenses should have nothing to do with what is charged for a service other than knowing that you need a certain amount to keep the business prosperous.

If the market rate rent for an apartment was $1,500 per month but you had tenants paying $1,000 and the CPI went up 3% you would only raise their rent to $1,030? You would not ask for the other $470 per month you could get? So if it was a 100 unit apartment building you would leave behind an additional $47,000 per month that you could have collected?

I had tenants once, that complained when I raised their rent to the fair market value, saying I should only collect what my expenses were and make a profit when I sold the building. I responded that if I was using their though process, if I was a wealthy man and had paid cash for the building, should I let them live in it for free and run a home for little wanderers?​

Any business owner is entitled to charge what the market will bear. Putting away reserves when times are good, for the low income years, market slumps, and assorted other expenses is just good business.
No one has mentioned the endless moratorium on rents and evictions.The majority of the nationís landlords are individual investors.many who bought two.three or 4 family homes to live in as well as an investment for the future.They still have to pay mortgages, perform repairs and maintenance while not collecting rent and it's caused many to lose their homes or file bankrupcty
SAMIAM is offline   Reply With Quote
The Following 7 Users Say Thank You to SAMIAM For This Useful Post: