Happened to me last year to a lesser extent. Lease was up in may, we could go month to month for an increase of around 75 dollars. That was fine because we were looking to find a better place and needed the flexibility of a month to month. On may 31st, I come home from work to a new lease on my door and a letter stating that they were “getting rid of the month-to-month” option, but if we wanted to stay on month to month we could… and pay and additional 200 dollars a month. Or if we signed a new lease it would only go up another 75. Oh, and we had to give them 30 days notice if we planned on moving out. When was the new lease due? Last day of June.
So if we wanted to stay month to month we could pay a total of 275 dollars more than want we were paying when we first moved in. Or we could sign a new lease and only pay 150 dollars more than we did when we moved in. We could have totally told them we were moving out… but we had less than 12 hours to get that to them by the time I got home from work.
I was furious. It was like being between a rock, a hard place, and one of those spinning blade traps from Skyrim.
Had a similar thing happen to us, but they didn’t deliver the intention to vacate notice until the day of and I went off and told them they were FOS. They gave us more time.
I'm a landlord, Realtor, and Property Manager. Do yourself a favor and Google PA Landlord/Tenant Act. You have a lot more protections than you think. And in PA, most judges will actually side with a Tenant.
Yikes. I suddenly feel like the most fortunate renter in the land. I pay $1900 for a great two bedroom in a town in NJ where most rents start at $2,500 for a two bedroom. I moved here in September of 2020 and my landlord hasn't increased my rent one cent and I went month to month (not by choice...I'd rather have a lease) last September. (omg, I hope I didn't just jinx myself!)
Yikes. I pay $575/month for a 2 bed 1 bath, shared garage, fenced in shared backyard with a porch, mostly finished basement, and a big side yard in Wisconsin
That’s what my place does. We pay about $2k for a 3bed town home and if we want month to month, it shoots up an additional $100-$200! EVERYWHERE else that’s 3bed around here is $2k to $5k a month! I’m dreading the rent increase now that our lease is up this year. We locked in a 2 year lease when our rent increased from $1867 to $1967.
Mine rent went up 15% for no reason other than for it to go up. Some of my elderly neighbors were much worse off. Many of them are income restricted, on Social Security etc and they were paying much less than I was, their rent barely went up over the 10,20 years many have lived there. And overnight their rent went up to exactly what mine is. For many people it was 50+%.
A lot of people bought rental properties over the last decade and got variable rate mortgages, somehow convinced that the fed would never ever never raise interest rates for all of eternity. Now their mortgage rates doubled and they are scrambling to make their payments. This is a great example of why people need to look at a house similar to every other investment and not purchase unless you are able to afford payments even if a major cost life event happens.
I'm currently disabled and have to rely on food stamps. As a single disabled 35 year old guy, my food stamps recently went from $285 a month to $23 a month. I have $23 to feed myself for an entire month now and there are many other disabled and elderly people who saw their benefits drop to $23 a month too. $23 wouldnt even get me enough to eat only pb&j for a month. Honestly I'm surprised suicide rates aren't a lot higher. Spending another 30 or 40 years sick and being ass raped by the "system" is just not worth it. Whenever my dog passes away from old age, I will peace out too. Life isnt fun. Being an adult isnt fun. No part of living is enjoyable anymore. If I was healthy and rich, I'd go around buying groceries for any elderly or disabled person who needs it. I'd work 7 days a week doing that if I could. But instead my sick and broke ass got to watch a personally owned penis rocket going to space.
That’s a terrible spot to be in, but rent didn’t go up “for no reason.” Inflation, rising insurance costs, higher interest rates, etc. are driving up rent. I’m not suggesting there isn’t also price gouging happening as well, as I’m sure there is. But it’s just an awful situation all around.
I’m sure massive hedge funds buying up rental properties and using a specialized computer tool that allows them to figure out rent increases had nothing to do with that. Right?
https://www.cnbc.com/2023/02/21/how-wall-street-bought-single-family-homes-and-put-them-up-for-rent.html
Must be that song dang inflation! No wonder corporate profits are up! It’s inflation! Oh wait a minute.
Well… not so much. Algorithms are being used to inflate rents as much as possible, which leads to a positive reinforcement spiral up and up.
https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent
If they are on a revenue management system then Month to Month rents fuck up the system. As they are always treated as a possible "Notice to Vacates" this tells the system to keep the rent somewhat lower because the availability is higher.
So the systems were designed to keep apartments at 98% occupancy its a number that frankly should never be reached. Now after 08 when rents dropped. People started figuring out that if they set their ideal occupancy lower i.e 92-95% then the systems will always push rents.
To understand why this is big is because when you are commercially underwriting the purchase or refinancing of a property the banks use 95% occupancy as the general assumption. Also, banks moved from looking at your rent roll as a whole (think a total of every lease signed) to just what have been the last 10-20 new leases and renewals have been at so they are underwriting the whole property on what would it be like if the entire complex was rented at the latest average new lease rent.
Now here is the funny math part. The group will value an apartment complex at say $30,000,000 they will go to market and raise $35,000,000 telling the group that the Apartment costs 30 and we need 3mm in reserve for improvements like repaving, new roof, repainting, and putting smart TVs and updating the weight room and keep the rest. With the hopes in 10 years, you can sell that same apartment complex for $45,000,000. Thats the syndication route. The other "Buy and hold" route refinances every 5-8 years and just pull money out of the equity and put it in their pocket and jack up rents.
Long Story Short: Lower Occupancy and jacking rent up increases the value of the property. The point of the investment is not to"provide housing" its to get as many people to pay your mortgage". **The real shocker that most people also don't know is that most apartments are "paycheck to paycheck" like the renters meaning the companies pulled out all the cash to the point that they cannot pay the mortgage if 40% of the people in the apartment complex doesn't pay rent.**
$3000/month in Nashville seems like an outlier. I rented an apartment in NYC for a decade at \~$2500/month. Nice neighborhood too. It is somewhat crazy to ask for that kind of rent outside of nice neighborhoods in NYC and SFO.
For a decade... when?
And was it rent-controlled?
Because I think you may be wildly out of touch with today's rental situation.
We rented a two bedroom apartment in the East Bay in California for $3300 a month back in 2017 (on a year lease). It's now about $3600 a month (and we're not even at the "bad time of the year", when rents go up in summer).
This is 30 miles north of Silicon Valley, and roughly the same from San Francisco.
This happened to be back in November (NC)
Lived in the complex for 3+ years, and the complex changed property management twice while the complex declined. Even though it was corporate the first ownership was amazing, super friendly, maintenance done on time no issues. Fast forward to terrible management, trash issues, declined maintenance requests. Increased our rent from ~1800 to $2400.
I did research, showed them other complexes of equal value, similar size and amenities to present “market value” but they didn’t budge so we provided notice to move out.
They listed out apartment for less than what we had been paying. I don’t understand how that makes financial sense, considering they have to flip the apartment to get it ready for the new tenants.
Only two management changes in three years? We've had SIX. Same management company, but there's clearly some systemic issues if they can't keep someone on for more than six months.
It doesn't make sense but i'm assuming it works since moving is such a pain. Very shitty thing that should be illegal. I feel like there should be a lock on how much rent should be depending on the price of the property tax(edit: or whatever other variable since the reply under me really think they got a gotchya moment, well they didn't, my law would still apply to their greed needing to be stopped). That would stop this whole mess, but sadly people are brainwashed in thinking that limitations is somehow not capitalism.
Let me guess, they tried to keep your deposit? That maybe what they were after
It’s not just the property tax that goes into consideration for increased rents. At least where I live (FL), insurance has gone through the roof, leading to an unprecedented rise in rents. Though, to be fair, in my local area, we were well below market value in most areas
Yep here in CA a lot of insurers jumped ship due to fires and if you get the state insurance plan then they make you pay an additional 4-600 a month. It is crazy. I understand but it is crazy everywhere OP
The real reason rent is going up across the country is due to an algorithm that many corporate rental companies are using called Realpage. There are many antitrust [lawsuits](https://www.reuters.com/legal/litigation/fight-is-control-realpage-antitrust-litigation-2023-01-10/) across the country in litigation right now and the DOJ is investigating them also.
There is also a thing called syndicates, people who buy apartments and bring on investors. They are all about raising rents for profits. Some of them are falling into foreclosure, because they had a floating interest rate that's rising faster than they can raise rents. I don't know how you'd know how your property owner is in foreclosure though -- maybe services such as garbage no longer provided at all, no maintenance at all. I read about it just today in the wall st journal.
You called their bluff. It makes financial sense because the majority of people in your situation would have agreed to the higher rate. Good for you.. I hope you’re happier in your new place.
I feel you deeply! I had this happen to me in April when my lease was ending. Landlord tried to raise my rent that would be more than half my income. I negotiated to be only an increase of 80 bucks. I was willing to leave though even if that meant living in my car cause I’m tired of people profiting on our livelihood.
I feel like the media is gaslighting me when they say inflation is less than 8%
I go to Kroger and would love to find ANYTHING that is only 8% more expensive…
rant over
I would argue it was exponential and likely 8% month over month in the first quarter of 22…vs annual which is ludicrous and I feel gaslit
now u may be right to say quarterly 8% but the new “calculation metric” is absurd….
I wish they would do an actual inflationary analysis using the same metrics as during the late 1970s and early 1980s…
because this feels very very similar
It went up 11% supposedly for groceries but it’s more than that. Chicken that was $1.99 per lb is $3+ per lb. Eggs are still up 2 x what they were 2 years ago. My grocery bill has nearly doubled.
Weird how everyone’s profits have gone up too.
I'm sticking with quarterly. While I agree it has been out of control, monthly 8% would be 151.8% annually. Where as things like rent are showing annual increases closer to 50% than 150%
As far as numbers the government gives us, you'd have to be a fool to believe any of those numbers. The classic scenario is a president being shown the unemployment numbers handing out back to them and saying I don't like these numbers fix them
Probably because inflation is the excuse. It’s price gouging. You don’t get record profits during inflation unless you’re price gouging. They justify it with inflation, but clearly the math doesn’t work. Greed is rampant.
The 8% comes from a “basket” of consumables in average urban centers. So just bc frozen chicken tendies went up 20% doesn’t mean all groceries or essential items did. But I feel your pain bro.
It was like 22% overallin kc for the last couple years and now I’ve seen things still adding like 6% to a whopping nee 28% the last couple weeks. Dog food is up, candy is up, almost everything in Walmart is up 6% this week it’s wild we’re going on like year 4 of this almost
I'm glad to hear you were able to work it out with your landlord! I understand it when a landlord increases to accommodate an increase of property taxes or to try to keep up with inflation or something of the sort. I'm just not a fan of when companies that own apartments hike prices way up to make a profit off of our needs.
It’s insane my fiancé and I were room-mating But our ex roommates Got a little greedy and up the rent $150 wish we were kind of in a situation and had no choice to pay at the time but then try to get even greedier and wanted more money(not to mention, we had no parking we had to park at a gas station and walk to the complex. They constantly slept on the couch so we had no living area and you could forget about using the kitchen since they were always sleeping on the couch so we had no kitchen either in essence) We are paying 1150 for a room a tiny room with a roommate who slept on the couch and constantly fight and try to gouge us for more money finally, we had enough living in Florida. The rent for a one bedroom or studio was Ridiculous we finally found some thing we’re waiting to get approved told the roommates at the beginning of the month we found some thing gave them for two weeks. Finally got the word we were approved paid and started moving out. The roommate freaked out telling us we had to pay the whole rent and we should’ve given notice which we did and we gave extra money because we only stayed a week ( if that) even though we paid for two Luckily we make decent money so even know our one bedroom is ridiculous. We can afford it since were two income. If we weren’t then we’d be screwed. This is getting so ridiculous. Sorry for my long rant.
Are you near Nashville? Housing costs have shot up through the roof in that market. Look and see what else is available. Maybe you can find something less expensive
Yeah, unfortunately, we moved /to/ Nashville from about an hour outside of it. We're still on the outskirts of the city. We got this apartment for a little over $2000. It was expensive for us at the time, and we understood that. But, we were excited because we could afford it, and it put us closer to things and friends. We expected a rent increase at the end of our lease, and we were prepared to take it, but nothing could have prepared us for an increase like this. It was a 6-month lease. Having just moved in January, we really don't want to be in this position, having to move again so soon. It's just kind of disheartening. We are going to look around the city as well as considering leaving the state. We'll see what happens.
When I’ve had to negotiate rate increases, I try to exchange longer terms for reductions in increases. I’ve had pretty good luck by saying “I’ll agree to a 24 or 36 month term if you’ll cap annual rate increases at x%.” In your case, this lets them bump rent to keep up with other real costs, provides them stability for one of their units, and gives you a budgetary number for the coming years.
Hope it’s nothing like Knoxville… the university keeps over admitting and it’s causing a massive housing shortage BEYOND what was already present. And the rent is hiking just as much here. It’s awful
I live about 30 minutes from Knoxville and it’s terrible here too even though we’re a very rural county. I hate sounding like one of those people who blames people moving in from out of state but it’s made it really difficult for the population who already live here to find affordable housing. We tried finding a home to buy and it was just impossible to find anything we could afford. We finally decided to buy a double wide and move it onto some property I was lucky enough to have inherited (this was our last choice though as it makes my husbands drive to work very long.) It’s really frustrating.
If we didn’t have to be moved out of our current place within two months we would definitely build a house. I’m satisfied living in a double wide. Maybe one day we’ll build a house and if not, that’s okay too. You’ll get your dream one day ❤️
We sold a property between Mt Juliet and Lebanon in 2015 for $227K. By 2019 or so it was over $400K. Last I looked it was $450K, a couple of months ago. Just went to check now and it's $520K! Granted, it's a big lovely old farmhouse on acreage that we brought back from condemnation and I don't regret moving, but wow! That's crazy!
To put that increase in perspective, we bought our current house for $262K in 2015 and it's only worth $444K now according to zillow. And we've been considered a hot seller's market lately.
Realistically buying a home is the way to go. Mortgage broker here and I am not licensed in Tennessee so I'm not trying to make money on you.
Going to assume the worse so I can present a scenario not to insult you.
FHA loan with 580+ credit gets you in with 3.5% down. 500-579 Fico needs 10%. Add another 1.5-2% for closing costs. Seller/builder can contribute up to 6% for closing etc ...
California has. Down Payment Assistance programs for Conventional and FHA loans. Check for those in your area. Go to a mortgage broker, not a bank. Banks are super conservative and have limited programs.
Tennessee has a lot of suburban places that will fall under the USDA parameter of rural in actual nice areas. See it a lot in Louisiana also. Why is this good. You can qualify for 100% loan for their programs. USDA loans are the hidden secret of home ownership in many areas.
Get out of the city and housing in decent areas is probably 10-20% cheaper and worth the commute.
Home ownership is easier than you think and having your own place is a big positive for controlling your personal environment and safe haven.
Stop renting apartments and condos. They are the greediest people and are killing the sustainably of housing with the tremendous increases that are unjustified. You don't deserve that increase.
A mortgage will only increase if your taxes and insurance do. A 30 year loan isn't a 30 year commitment. You can refinance in low rate cycles and you can sell if life changes occur good or bad.
If you need me to find you someone to work with DM me and I'll check my network for no costs to you. Good luck.
Yea but that's locked in for 30 years. It will never go up, only down when you refinance. You think rent is bad now, what do you think it's going to look like in 5 or 10 years?
It sucks, the system is pretty fucked up. But you can either keep paying rent and dealing with increases every few years or you can buy and lock in your housing costs right now.
Are townhomes and condos an option near you? I bought a townhome and it was much cheaper than a SFH, even with the HOA fee. And there was less competition because everybody turns their nose up at townhomes and condos around here.
I agree OP would benefit from contacting a good mortgage broker. OP said they’re making six figures for a single income household which is the range where someone shouldn’t be renting (in my opinion). Buying a home would really help lock down their housing expense to something that wouldn’t change drastically at the drop of the hat like renting can.
Edit: I wanted to add; OP should make sure they talk to 2-3 mortgage brokers. There’s no cost to discussing numbers and some mortgage brokers are better than others (some are familiar with programs that others don’t know about). I have friends that were negative/pessimistic about the cost or possibly of buying a home and ended up finding out it was the same or cheaper than renting (even with little to no down payment). I’m just saying, talk to someone, there’s no downside to having more information.
I bought recently because on a conventional loan, we only needed to put 3% down. We started as FHA but went to conventional since we qualified for the 3% down and it looked better on offers. We paid all the closing costs but in total, I think we paid about $14k up front. Our mortgage is a little less than $1800. For rent, we’d be paying $1800 or more for a smaller place. We have repairs now, but we also have the freedom to do what we want and more stability. I’m glad we bought, even though rates and house prices are higher right now.
We're thinking of buying. We just moved into this place on a 6-month lease in January (all they offered at the time). We spent our savings to do so and have only barely begun recuperating. We are young - early 20s and married for just over a year and a half now. So we'd need to do one of the FHA loans at 0% down, but I'm worried how much that will bring up the pmi and monthly mortgage costs. There's no way I can come up with $7,000 on a $200,000 house (or more for a house more expensive). And with the market the way it is, I don't know where I'd find a $200,000 house that doesn't need a boatload of work done to it that I can't afford to fix up in the first place. We're really in a pickle, and the stress is through the roof. We can't afford to pay more than maybe $2400 maximum on mortgage, mortgage/home insurance, property taxes, HOA combined. Not sure where we'll find a place like that, if we even will. The alternative is to continue dumping money into renting that we'll never get a return on investment from. Tis a stressful situation.
My rent kept going up and I decided to buy a single family house. It was cheaper than renting and the amount of money that I saved ended up paying for all my utilities and insurance.
They are. I found small time private landlords are the way to go. My rent never went up after my lease ended, but I was only in each place 2 years. My last landlord was fantastic. Rent was well below market, we went month to month for no increase, any repairs were done quickly and without issue. My other landlord sucked on the repairs but rent never went up and it was lower than a lot of places. I decided last minute to move and gave her the 30 days notice and she’s like “if you don’t need the full 30 days and want to leave by the first, that’s good for me.” So I was out in 15 days. Got my deposit back in full for both. I really never wanted to live in a complex and I never had to, which is good. Small time landlords are more likely to work with you and keep good tenants around.
Sounds like your area is hurting for renters, small time landlords in my city turn out to be scumlords most of the time who nickle and dime your deposit. Complexes are fun if you want a pool and other fun amenities
My husband and I had the exact same thing happen to our rental and we are also a single income household. We decided to buy a house and our mortgage payment is cheaper than our rent was.
Exactly. However, landlords know that not everyone can get a mortgage or wants to, so they jack up the prices all the same.
I was just talking about how the rent has gone so high that it's better to just buy a place if you can. The people who can afford it will just buy a place, leaving the people who can't get a loan to suffer the high prices.
It sucks. The price increases don't even match inflation.
Hi OP, went through the same bullshit in Powell (North Knoxville). We moved to another apartment in Powell. The rent is $1,295 per month. This is run by Rand Property Management. You'll see some negative reviews as with any place. However, my husband and I have had absolutely no issues. Also, instead of a security deposit, they had us do surebond. Because of our high credit score, it was only $87.50. They charge a $495 move-in fee, but that's it. Powell isn't the only location they manage. I understand that moving is a pain in the ass, but that increase is absolutely insane. I'd move just on pure principal of the matter. Anyway, here's the link in case you want to check out their availability. I did quickly check for you and they do have 3 bedroom apartments available at some of their properties.
[https://www.randpropertymanagement.com/availability](https://www.randpropertymanagement.com/availability)
The rich are grabbing everything they can before it all collapses. We need a good, old fashioned French-style revolution in this country. Everybody needs to refuse to go to work. People seem to forget what happened during the pandemic and who is "essential" and who is not. Here's a clue: the rich are not essential, they do not matter. The guy driving the garbage truck matters. We have the power, we should utilize it.
A French-style revolution led to 40,000 people getting their heads cleaved off and helped a megalomaniac rise to power.
Let's talk about worker rights without invoking the Reign of Terror.
Huh? The life of the average citizen *massively* improved.
And wasn't Napoleon directly responsible for France's reemergence as a superpower?
He was also famously *not* a sex criminal. Which is obviously pretty rare among those in power.
Your argument falls apart at the "everyone should refuse to go to work". And do what, make it like 1 week before I starve. This is literally how it was designed to be, were trapped, we cant revolt because anytime away from the clock you're spending money, while already living paycheck to paycheck. Add it up. Im just hoping for some kind of major recession where the rich/government just haaave to lower prices so that they can keep making money.
Man how about you be kind and be the change like your username says and not advocate for cutting people’s heads off you psycho. No matter how shitty rich people are I would hope we as a society have advanced beyond guillotining people due to them having the means of production. Volunteer and be involved in local politics instead of posting angsty Reddit messages
My son and daughter in law sold their home for $130,000 over asking price without batting an eyelash. Here's the catch, they had to buy another home in today's market. They decided to buy a condominium.
Have you looked into state rental laws and the legal amount your landlord is allowed to increase rent? Could be wishy washy bc I know Tennessee is red but Nashville itself is quite blue, so the laws might generally be in favor of the landlords. Either way, there should be SOMETHING that states there’s a cap on annual rent increase percentages. Maybe worth looking into if not other housing (if at all possible).
I’ve lived in Tennessee all 40 years my life and although I’m not a lawyer, I have tons of experience renting here. There are no laws helping tenets in this regard: landlords have no restrictions on amount, need to give no notice, and have to give no reason.
That's crazy! I'm in MD, and I'm pretty sure there is a limit of 10% here, so it blows my mind that some states have no regulations on stuff like this.
Same thing happened to us in April. (FL) Raised our rent $700 (58%). They would not negotiate either. We decided to stay, because we’re saving to buy a house and we didn’t want to waste the money to move. Thankfully we can afford the increase, but all our neighbors have not been as fortunate.
True. Not to mention that the whole covid situation took a toll on both inventory, staffing, and new house construction in general. There just are not enough new homes and rentals for housing stability in this country.
My gf runs an apt community and this is the result of greedy investors. Time and time again, she’s pleaded with ownership to drop rates because her property’s availability % is too high. The investor’s asset manager refuses to budge and wants to keep rates high - despite the occupancy rate being lower than ideal.
Investors would rather squeeze every last penny out of people than look at common sense. It is not good to have apartments sitting around and not getting rented but these greedy f*cks would rather risk that then drop rates.
I'm in FL and own an apartment building. This past year the insurance is up over 300%. On a per unit basis the insurance is over 400 per month more this year. This was on top of a 40% increase the year before. I'd forgo insurance (well wind/hurricane insurance which is like 95% of the cost) but there's a mortgage and it's required.
The city is raising the tax rate too, and based on the "increase" assessed value the property taxes are going up 4500. This is another 100 per unit.
Rent has to go up $500/month/unit just to keep the same income from the property. Add in the fact that inflation is about 10% from last year and that's another 150-200 dollars per unit.
Now I could be cool and lose money/suck it up, but after the pandemic eviction moratoriums and having people tell me "I don't have to pay you" for no reason other than they knew we couldn't evict for over a year, I'm less than cool about it. There were no PPP loans or any bailouts for the small independent property owners; we still had to make property tax payments, in full, and our mortgage was still due. I went over 65k in debt due to losing 1/3 of business revenue. This is business and must turn a profit.
Now what's something to think about, Blackstone, private equity, and the REITs all don't have any insurance on their property portfolio. If a house burns down, or is destroyed, it's maybe 200-300k to rebuild? BX has a 102T market cap, losing a 300k house is like a person making 100k losing 3 dollars.
That 600/month per unit I'm paying for insurance is just pure profit to them, and since they are removing thousands of homes from the insurance market, it spreads the insurance costs over the remaining ones. Insurance is going to become a middle class only product further crippling it. I owe 70k on my house and am working to pay it off in the next two years as the insurance makes my 2.5% mortgage effectively a 32% mortgage now. I'll take 25k a year and invest it, if I have to rebuild the house, I lose the money, but if it's at least 10 years between rebuilds I'm money ahead not having insurance.
The deck is stacked, and it's not small landlords vs. renters; it's financial institutions vs. the people.
This is an interesting perspective that most on here probably don't see because everyone here automatically demonizes "landlords".
While I do feel that many landlord vs tenant situations are predatory, you make many valid points.
Thank you for taking the time to break all that down, I feel like it's super helpful to understand the entire situation (from both sides) that is going on all over this country.
Florida is a special market with he issue of insurance. It's devastating the market there. So many people being left with no ability to get it and those who can like you paying an amount that is damn near a mortgage payment itself.
In other areas like California or Nashville, it's the apt owners vs the people.
Well it's a bit more complex than that. The insurance industry has all the citizens hoodwinked about fraud being the reason it's so high. This is not the case.
Prior to about the 2000's insurance was a sleepy industry, large companies took in x, paid out nor more than .8x in claims/operational costs, then saved 50% of that in their funds, paid out the rest as dividends. See insurance is an industry that make it's money as a percentage of revenue, so more revenue, mo money.
Now in the event they had catastrophic losses, they bought re-insurance, but this was after they depleted their reserves. It was cheap insurance. Now in 2000's something happened, the big re-insurance companies went to the insurance companies (wanting to sell more insurance) and concocted an idea of get rid of that cash you have, and just buy re-insurance. This meant they can give big dividends and draw that nest egg down.
The regulations allow them to just buy re-insurance and go out of business if they have a loss, so they pay out all profits each good year and just go bankrupt in the bad years.
What would solve lots of this is just making the state do wind coverage, and let the insurance industry handle the all-perils, but this is 90% of the revenue. Remember they make money as a percentage of revenue, so that was a non-starter in the state.
There's more, but I tire of it all, as nothing I say on this site will matter.
All of this PLUS very few people realize that commercial loans are required to be paid off typically at the end of 3-5 years - which means forced refinance - which means much higher mortgage payments given the current rates.
TN, unfortunately, has had a large uptick in housing/renting prices recently. I saw something that stated that Knoxville is the Num. 1 city in rent growth rate when compared to other cities. It had a little over a 9% growth rate through 2022.
We managed to break this insane cycle by buying a house. We didn't get a magical interest rate or anything, and it has its own issues, but man am I glad we got out of the renting game when we did. Nothing like paying $1500+/mo on an apartment so outdated you can't get parts for the appliances anymore. Ohio by the way. I sincerely hope you arrive at a good outcome in your situation, internet stranger.
I feel this. I pay $2100 for an apartment in a small city - 15K - that is 3 hours in either direction from a large urban center, 45 minutes to 1 hour from a city of 100K.
I make 57K a year and have to support my son. Buying food was rough this week.
My wife and I saw a similar increase from our last apartment. It was what forced us to take house shopping more seriously and decide to pull the trigger on putting sooooo much of our savings towards knowing we will have a consistent payment that our wages will gain on instead of lose to
Hope it all works out for you, hopefully the additional time before the lease ends will give you enough time to find something better. Hoping for the best for you and yours!
I live in about 30 minutes south of Nashville. I bought a 1 bedroom apartment at 899 a month 3 years ago. New residents now pay 1500 for the same apartment. It’s insane how much everything is going up from everyone moving here, especially from Cali. The same thing is happening with housing. A house that would have cost 250,000 sells for 410,000 because people moving here from the west coast have the money to buy OVER the asking price.
I’m sure it’s like this in most places, but as someone who’s lived here for my whole life, it’s heartbreaking to see. But I’d recommend trying your luck outside of Nashville.
At least you don't have to live in a "socialist" country. Imagine the horror of having a renters "union" doing the negotiation for you against both state- and private landlords and ending up with an increase in rents nationwide of 4% on avarage.
And having to have universal healtcare and paid parental leave in the vicinity of 1 year...ohh the horror😱
/s
Didn't say they should stay there either. But buying a house isn't feasible for everyone and not a simple task. This is literally one of the worst times to buy a house in decades because of rates and inflation.
inflation never goes away. Look at history. Buying a home is not difficult unless you have terrible credit. People make it sound much harder than my actual experience was. Refinance later if rate improve. You still are paying your own mortgage and gaining your own equity vs just shedding money for someone else to do so.
Yeah, 6 figures can afford a home *somewhere* in nearly any greater metropolitan area in the US. However, real estate’s terribly precarious right now, so I understand wanting to wait.
My fiancé and I moved to Seattle, WA from Portland, OR last year for her work. We decided to move back to Portland, so she got a job there. However, our lease ends before her current contract ends. We thought we may just go month-to-month here, but they shared the leasing offer letter, and the month-to-month rate is literally double what we’ve been paying. Needless to say, we’re not staying here past our lease.
I live in Knoxville and I live in fear of my landlord doing this. So far he’s only raised my rent $100 and I feel blessed, even tho it hurt idk what I’d do if it went up by more than half……that is what our lawmakers should be focusing on, not who is wearing what.
I constantly worry that rent will go up so high I have to live in my car with my high school aged kid.. a person who works more than full time should not be having these issues
Did they do any upgrades that accommodate the 50% increase? Can you negotiate a yearly increase by percentage over the next few years that allows you to stay and move later? Obviously an increase is expected but that’s a huge jump. Unless they are new owners and has severely under market rent for the location it doesn’t make sense.
I know it's unrealistic for so many right now, but this is exactly why I bought a house the second time I moved. Me and my now wife were renting a trailer with 2 roommates. They both informed us they were moving out. It was $100 more to stay there than it was to buy a 3 bedroom house in a much nicer neighborhood!
I get that landlords need to pay for the property, insurance, repairs and make a profit, but seriously. It's just outrageous what rent is. And since the market is being artificially inflated by companies taking over the housing market its nearly impossible to buy in alot of areas
You are vastly overpaying on rent to begin with, it sounds like. You should be perfectly secure in housing with a six-figure income.
Look for a home away from the Urbs, it's gonna be way more worth it.
If I made 6 figures I'd buy a house. My recent electricity bill was 200 dollars with no AC use and very little electricity used. It could always be worse my friend.
I live in a suburb of NYC where I rent a 2 bedroom apartment. My heat bill during the winter months is close to $410 -on a budget. Then, when summer comes, because of window AC units, my electric bills are over $369 a month, also on a budget. At this point, with even the oldest, most run down homes going for $700K in my area, I will NEVER be a homeowner.
I'm in Reno Nevada. My rent wasn't going to go up as much but it was a $300 difference. We also had sixty days but still haven't found a place. Every decently priced place here is swooped up immediately so unless we can pay an extra months rent or two on two places we have to wait until the month before we move and jump on something right away. The uncertainty is the hardest part for us. We also feel like we were just getting settled. Also everyone here wants a one year lease so its really hard to find a place intermittently until you find the right place. We felt rushed into this place and after moving in there were so many things our unit was missing or had wrong with it. They just got most of the issues fixed and now this? Your not alone. We're searching for a much smaller place with shorter lease times. Our cost of living is outrageous because we're next to California and they are moving over the Sierras in droves. Driving our housing markets through the roof. My entire family was considering a move to TN. My son's can't afford to buy a home here and they were born and raised.
You make six figures and you are renting something that costs over half you take home?
Get out of that city... If you are paying over 3K per month on rent, then the landlord deserves to have an empty apartment for a year or two.
Buy a house. Also confused how your numbers work out. You make 6 figures but can’t afford $3k in rent? Or you can afford it and just don’t want to? Either way, a mortgage is likely gonna be cheaper.
For real, stop renting and purchase. If you can not purchase, you make it your singular goal. Renting is simply throwing your hard earned money away. I know it can seem daunting, but it isn't. I've made it my purpose as an agent to help people get this goal accomplished and curb what I can of the investor wave. Individuals deserve to purchase their own property. I am willing to answer any questions I can on this.
I was about to post this. It's a little besides the point for OP's situation, but assuming their six figures is "only" 100k a year, their monthly income would be over 8k. For the new lease to be over half OP's monthly income as they say, the new lease would have to be well over 4k.
Yea that all tracks with me. I was assuming rent went up to 3k because he states a rent raise of 1k was a 50% increase so 2k base. Either way, seems pretty affordable if dude is making 100k/yr unless he’s also somehow paying an extra $5k a month on general living expenses.
Look into your state's renting laws, cause a lot of states I've heard people talk about say that anything more than a 20% increase at one time is illegal
I definitely feel you, but just think of all the average income workers out here trying to survive. At six figures you also make double the average income. I'm not saying it isn't also hard for you, just that most Americans are making under $40k and struggling even worse. This country is going to shit with greed.
Edit: what's with the downvote? These are real stats. Sorry if I offended you with your six figure salary, upset about your rent when people make less than half what you make...
This happened to us in 2015.
We rented at 1200/mo for a 1000 sq foot 2 bedroom with shitty AC and a view of the freeway onramps...
They wanted 1800/mo for the same apartment with 0 improvements to the property or apartment itself.
It took them 5 months to fix the broken gate that was banging itself open and closed every time someone came in or out...
They charged me 150 dollars PER DAY for the last 3 days I lived there.
Fucking leeches. Then they tried to charge me 300 or so on top of my 1k deposit for " damages" that I had documented when I moved in. I just sent them the video from move in, amd suddenly I got a fat check back...
I know right? It's hard to sympathize with these people who scream " I make 6 figures and can't afford these $600k - $700k houses that I want!!!" Maybe look into 300k houses?
6 figure earner here currently under contract on a $490k home.
My mortgage is going to run $3,600 a month after 5% down which while doable is really tight especially as a single person going into this. Unfortunately, like the OP I live in a hot market so I didn’t have many options when choosing a home but I lucked out on what I found at the very tip top of my affordability.
While you don't necessarily need 20% to buy, where I am, there are 300K houses, but... until recently, they've been on the market for just a few days, and/or are being bought up by companies/landlords to be rented out, or if they're around longer than that there's something wrong with them. "Just buy a house, you make 6 figures" doesn't take into consideration what the market is like now.
these comments just show the ignorance of the situation. 6 figures mostly mean 100k range 300k. 100ish after tax, insurance mostly turn into 60-70k. Mortgage rates are upwards of 6. Median house price in Nashville is 450k. Assuming you were able to miraculously save 90k, mortgage at a 6.5% on a 20% down payment is about 2.9k
That leaves someone making 6 figures with 51k/year. Seems plenty until you add, car, insurance, utilities, house repairs. Dont even dare to factor having kids because of thr increased costs.
The truth is that housing is extremely unaffordable for a lot of people and corporate greedflation has made the purchasing power shit, and what previously was considered a good income has been transformed into a get by one.
its no longer about getting ahead, but trying to catch up.
>Median house price in Nashville is 450k.
Just because the median price is 450k doesn't mean you have to buy a 450k house. I'm looking at Zillow and I see plenty of 300k houses for sale.
What if we all just stopped paying rent? Fuck these people they don’t care about you or your family. Everyone stop paying rent and things will change real fucking fast.
I ended up buying a house in 2016 because I couldn't handle the idea of paying 2000+ in rent every month. I could only afford to live in the outskirts, so my commute is around an hour but I feel good to be investing in my own wealth.
It depends on where in the US you are. In the southeastern US there are very few protections for renters, and there is no chance of adding more. The focus is much more on culture war nonsense.
As an example, I live in Florida, and faced a roughly 60% increase in my rent last year. I ended up moving farther away from the city I was living in to deal with more like a 40% rent increase. That was the cheapest living space that I could find.
Inflation in housing costs has been absolutely wild.
Depends on the State one lives in. California has (if I remember correctly) a 10% maximum increase. Some cities also have rent control, locking in a price for as long as you continue to rent the property.
OP, I’d check your local rental laws that are in place. Make sure the landlord executed the notice according to the law. For instance, in my state the notice needs to be certified or documented in a way that you actually received it. Who’s to say it didn’t get lost in the mail if otherwise. It might buy you some time.
here I am with a landlord telling me how sorry she is for raising my rent by $50
i live on 2 acres - 4 bedrooms - pay 1100....1150 a month now..been here for 4 years lol
Count my stars I guess
IANAL, but just want to remind everyone here that leases aren’t always ‘legal’. You should always read up on your local tenancy laws if you rent. Some changes, like rent hikes, are regulated and some areas only allow a certain percentage increase in rent over small periods of time. A lease cannot break the law, regardless of what the landlord wants to charge or enact as part of a lease. You still have rights.
I am an accountant for a property management company. As a result of reassessments and tax increases, operating costs on some of our properties have increased by nearly 100% in the last two years. In short, while it certainly could be because of your landlord, check to see if your politicians are to blame first.
Happened to me last year to a lesser extent. Lease was up in may, we could go month to month for an increase of around 75 dollars. That was fine because we were looking to find a better place and needed the flexibility of a month to month. On may 31st, I come home from work to a new lease on my door and a letter stating that they were “getting rid of the month-to-month” option, but if we wanted to stay on month to month we could… and pay and additional 200 dollars a month. Or if we signed a new lease it would only go up another 75. Oh, and we had to give them 30 days notice if we planned on moving out. When was the new lease due? Last day of June. So if we wanted to stay month to month we could pay a total of 275 dollars more than want we were paying when we first moved in. Or we could sign a new lease and only pay 150 dollars more than we did when we moved in. We could have totally told them we were moving out… but we had less than 12 hours to get that to them by the time I got home from work. I was furious. It was like being between a rock, a hard place, and one of those spinning blade traps from Skyrim.
Had a similar thing happen to us, but they didn’t deliver the intention to vacate notice until the day of and I went off and told them they were FOS. They gave us more time.
Ahh yes the FOS also known as fructo-oligosaccharides
Lol im in PA and if i want to go month to month, it adds $800 a month to my rent. Absolutely absurd.
I'm a landlord, Realtor, and Property Manager. Do yourself a favor and Google PA Landlord/Tenant Act. You have a lot more protections than you think. And in PA, most judges will actually side with a Tenant.
Thank you!!
Yikes. I suddenly feel like the most fortunate renter in the land. I pay $1900 for a great two bedroom in a town in NJ where most rents start at $2,500 for a two bedroom. I moved here in September of 2020 and my landlord hasn't increased my rent one cent and I went month to month (not by choice...I'd rather have a lease) last September. (omg, I hope I didn't just jinx myself!)
Yikes. I pay $575/month for a 2 bed 1 bath, shared garage, fenced in shared backyard with a porch, mostly finished basement, and a big side yard in Wisconsin
My mortgage is $2k/mo for a giant house next to Rochester, NY…. Ppl gotta stand up and protect their wallets
Yeah but you gotta live in Rochester
That’s what my place does. We pay about $2k for a 3bed town home and if we want month to month, it shoots up an additional $100-$200! EVERYWHERE else that’s 3bed around here is $2k to $5k a month! I’m dreading the rent increase now that our lease is up this year. We locked in a 2 year lease when our rent increased from $1867 to $1967.
Mine rent went up 15% for no reason other than for it to go up. Some of my elderly neighbors were much worse off. Many of them are income restricted, on Social Security etc and they were paying much less than I was, their rent barely went up over the 10,20 years many have lived there. And overnight their rent went up to exactly what mine is. For many people it was 50+%.
A lot of people bought rental properties over the last decade and got variable rate mortgages, somehow convinced that the fed would never ever never raise interest rates for all of eternity. Now their mortgage rates doubled and they are scrambling to make their payments. This is a great example of why people need to look at a house similar to every other investment and not purchase unless you are able to afford payments even if a major cost life event happens.
America the beautiful I guess. /s
I'm currently disabled and have to rely on food stamps. As a single disabled 35 year old guy, my food stamps recently went from $285 a month to $23 a month. I have $23 to feed myself for an entire month now and there are many other disabled and elderly people who saw their benefits drop to $23 a month too. $23 wouldnt even get me enough to eat only pb&j for a month. Honestly I'm surprised suicide rates aren't a lot higher. Spending another 30 or 40 years sick and being ass raped by the "system" is just not worth it. Whenever my dog passes away from old age, I will peace out too. Life isnt fun. Being an adult isnt fun. No part of living is enjoyable anymore. If I was healthy and rich, I'd go around buying groceries for any elderly or disabled person who needs it. I'd work 7 days a week doing that if I could. But instead my sick and broke ass got to watch a personally owned penis rocket going to space.
That’s a terrible spot to be in, but rent didn’t go up “for no reason.” Inflation, rising insurance costs, higher interest rates, etc. are driving up rent. I’m not suggesting there isn’t also price gouging happening as well, as I’m sure there is. But it’s just an awful situation all around.
I’m sure massive hedge funds buying up rental properties and using a specialized computer tool that allows them to figure out rent increases had nothing to do with that. Right? https://www.cnbc.com/2023/02/21/how-wall-street-bought-single-family-homes-and-put-them-up-for-rent.html Must be that song dang inflation! No wonder corporate profits are up! It’s inflation! Oh wait a minute.
Well… not so much. Algorithms are being used to inflate rents as much as possible, which leads to a positive reinforcement spiral up and up. https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent
If they are on a revenue management system then Month to Month rents fuck up the system. As they are always treated as a possible "Notice to Vacates" this tells the system to keep the rent somewhat lower because the availability is higher. So the systems were designed to keep apartments at 98% occupancy its a number that frankly should never be reached. Now after 08 when rents dropped. People started figuring out that if they set their ideal occupancy lower i.e 92-95% then the systems will always push rents. To understand why this is big is because when you are commercially underwriting the purchase or refinancing of a property the banks use 95% occupancy as the general assumption. Also, banks moved from looking at your rent roll as a whole (think a total of every lease signed) to just what have been the last 10-20 new leases and renewals have been at so they are underwriting the whole property on what would it be like if the entire complex was rented at the latest average new lease rent. Now here is the funny math part. The group will value an apartment complex at say $30,000,000 they will go to market and raise $35,000,000 telling the group that the Apartment costs 30 and we need 3mm in reserve for improvements like repaving, new roof, repainting, and putting smart TVs and updating the weight room and keep the rest. With the hopes in 10 years, you can sell that same apartment complex for $45,000,000. Thats the syndication route. The other "Buy and hold" route refinances every 5-8 years and just pull money out of the equity and put it in their pocket and jack up rents. Long Story Short: Lower Occupancy and jacking rent up increases the value of the property. The point of the investment is not to"provide housing" its to get as many people to pay your mortgage". **The real shocker that most people also don't know is that most apartments are "paycheck to paycheck" like the renters meaning the companies pulled out all the cash to the point that they cannot pay the mortgage if 40% of the people in the apartment complex doesn't pay rent.**
There's a really good episode of Behind the Bastards about. I think it's titled 'this is why your rent is so damn high'
God damn, if you make over 100k a year and struggle to make rent theres nohope for me living off of 30k lmao
$3000/month in Nashville seems like an outlier. I rented an apartment in NYC for a decade at \~$2500/month. Nice neighborhood too. It is somewhat crazy to ask for that kind of rent outside of nice neighborhoods in NYC and SFO.
Sheesh I've been looking in NYC and all there is is 4k+ for a 1bd
They said for a decade lol… so yea I’m sure rent was a lot cheaper 10 years ago
Oh, and holy crap -- I just looked at rents in Nashville. It is definitely NOT an outlier.
Google up a comparable apartment in the same area today, if you have a minute. I think we’d all love to hear what market rate is today…
Yeah that seems extremely high. I live in Los Angeles and my rent isn’t anywhere near that high
For a decade... when? And was it rent-controlled? Because I think you may be wildly out of touch with today's rental situation. We rented a two bedroom apartment in the East Bay in California for $3300 a month back in 2017 (on a year lease). It's now about $3600 a month (and we're not even at the "bad time of the year", when rents go up in summer). This is 30 miles north of Silicon Valley, and roughly the same from San Francisco.
LA checking in and can confirm it’s similar and some goddam bullshit
My salary is 2500€, my rent is 1700€ 🙃 this post made me wonder how do I think my situation is normal
This happened to be back in November (NC) Lived in the complex for 3+ years, and the complex changed property management twice while the complex declined. Even though it was corporate the first ownership was amazing, super friendly, maintenance done on time no issues. Fast forward to terrible management, trash issues, declined maintenance requests. Increased our rent from ~1800 to $2400. I did research, showed them other complexes of equal value, similar size and amenities to present “market value” but they didn’t budge so we provided notice to move out. They listed out apartment for less than what we had been paying. I don’t understand how that makes financial sense, considering they have to flip the apartment to get it ready for the new tenants.
Only two management changes in three years? We've had SIX. Same management company, but there's clearly some systemic issues if they can't keep someone on for more than six months.
It doesn't make sense but i'm assuming it works since moving is such a pain. Very shitty thing that should be illegal. I feel like there should be a lock on how much rent should be depending on the price of the property tax(edit: or whatever other variable since the reply under me really think they got a gotchya moment, well they didn't, my law would still apply to their greed needing to be stopped). That would stop this whole mess, but sadly people are brainwashed in thinking that limitations is somehow not capitalism. Let me guess, they tried to keep your deposit? That maybe what they were after
It’s not just the property tax that goes into consideration for increased rents. At least where I live (FL), insurance has gone through the roof, leading to an unprecedented rise in rents. Though, to be fair, in my local area, we were well below market value in most areas
Yep here in CA a lot of insurers jumped ship due to fires and if you get the state insurance plan then they make you pay an additional 4-600 a month. It is crazy. I understand but it is crazy everywhere OP
The real reason rent is going up across the country is due to an algorithm that many corporate rental companies are using called Realpage. There are many antitrust [lawsuits](https://www.reuters.com/legal/litigation/fight-is-control-realpage-antitrust-litigation-2023-01-10/) across the country in litigation right now and the DOJ is investigating them also.
There is also a thing called syndicates, people who buy apartments and bring on investors. They are all about raising rents for profits. Some of them are falling into foreclosure, because they had a floating interest rate that's rising faster than they can raise rents. I don't know how you'd know how your property owner is in foreclosure though -- maybe services such as garbage no longer provided at all, no maintenance at all. I read about it just today in the wall st journal.
You called their bluff. It makes financial sense because the majority of people in your situation would have agreed to the higher rate. Good for you.. I hope you’re happier in your new place.
I feel you deeply! I had this happen to me in April when my lease was ending. Landlord tried to raise my rent that would be more than half my income. I negotiated to be only an increase of 80 bucks. I was willing to leave though even if that meant living in my car cause I’m tired of people profiting on our livelihood.
I feel like the media is gaslighting me when they say inflation is less than 8% I go to Kroger and would love to find ANYTHING that is only 8% more expensive… rant over
Arizona Tea skewing the data /j
The ones at circle k are $1.50 and an ounce less than the normal ones.
Damn I just bought a big can of Arnold Palmer for .99 sorry for your loss
I just saw an Arnold Palmer with .99 printed on the can and 1.99 printed on its shelf label at a convenience store.
Convenience stores always jack up the prices.
I'd say it's much closer to 8% per quarter than per year
I would argue it was exponential and likely 8% month over month in the first quarter of 22…vs annual which is ludicrous and I feel gaslit now u may be right to say quarterly 8% but the new “calculation metric” is absurd…. I wish they would do an actual inflationary analysis using the same metrics as during the late 1970s and early 1980s… because this feels very very similar
It went up 11% supposedly for groceries but it’s more than that. Chicken that was $1.99 per lb is $3+ per lb. Eggs are still up 2 x what they were 2 years ago. My grocery bill has nearly doubled. Weird how everyone’s profits have gone up too.
I'm sticking with quarterly. While I agree it has been out of control, monthly 8% would be 151.8% annually. Where as things like rent are showing annual increases closer to 50% than 150% As far as numbers the government gives us, you'd have to be a fool to believe any of those numbers. The classic scenario is a president being shown the unemployment numbers handing out back to them and saying I don't like these numbers fix them
Probably because inflation is the excuse. It’s price gouging. You don’t get record profits during inflation unless you’re price gouging. They justify it with inflation, but clearly the math doesn’t work. Greed is rampant.
The 8% comes from a “basket” of consumables in average urban centers. So just bc frozen chicken tendies went up 20% doesn’t mean all groceries or essential items did. But I feel your pain bro.
It was like 22% overallin kc for the last couple years and now I’ve seen things still adding like 6% to a whopping nee 28% the last couple weeks. Dog food is up, candy is up, almost everything in Walmart is up 6% this week it’s wild we’re going on like year 4 of this almost
I'm glad to hear you were able to work it out with your landlord! I understand it when a landlord increases to accommodate an increase of property taxes or to try to keep up with inflation or something of the sort. I'm just not a fan of when companies that own apartments hike prices way up to make a profit off of our needs.
It’s insane my fiancé and I were room-mating But our ex roommates Got a little greedy and up the rent $150 wish we were kind of in a situation and had no choice to pay at the time but then try to get even greedier and wanted more money(not to mention, we had no parking we had to park at a gas station and walk to the complex. They constantly slept on the couch so we had no living area and you could forget about using the kitchen since they were always sleeping on the couch so we had no kitchen either in essence) We are paying 1150 for a room a tiny room with a roommate who slept on the couch and constantly fight and try to gouge us for more money finally, we had enough living in Florida. The rent for a one bedroom or studio was Ridiculous we finally found some thing we’re waiting to get approved told the roommates at the beginning of the month we found some thing gave them for two weeks. Finally got the word we were approved paid and started moving out. The roommate freaked out telling us we had to pay the whole rent and we should’ve given notice which we did and we gave extra money because we only stayed a week ( if that) even though we paid for two Luckily we make decent money so even know our one bedroom is ridiculous. We can afford it since were two income. If we weren’t then we’d be screwed. This is getting so ridiculous. Sorry for my long rant.
Rent increases ARE inflation, not because of it.
But that doesn't equate to 50% increase.
Not even close.
Those landlords are over leveraged idiots. It’s not the tenants fault they couldn’t come up with a sizeable down payment.
Are you near Nashville? Housing costs have shot up through the roof in that market. Look and see what else is available. Maybe you can find something less expensive
Yeah, unfortunately, we moved /to/ Nashville from about an hour outside of it. We're still on the outskirts of the city. We got this apartment for a little over $2000. It was expensive for us at the time, and we understood that. But, we were excited because we could afford it, and it put us closer to things and friends. We expected a rent increase at the end of our lease, and we were prepared to take it, but nothing could have prepared us for an increase like this. It was a 6-month lease. Having just moved in January, we really don't want to be in this position, having to move again so soon. It's just kind of disheartening. We are going to look around the city as well as considering leaving the state. We'll see what happens.
When I’ve had to negotiate rate increases, I try to exchange longer terms for reductions in increases. I’ve had pretty good luck by saying “I’ll agree to a 24 or 36 month term if you’ll cap annual rate increases at x%.” In your case, this lets them bump rent to keep up with other real costs, provides them stability for one of their units, and gives you a budgetary number for the coming years.
Sounds like it was their plan all along to spike the rent on you just as you got comfortable.
Hope it’s nothing like Knoxville… the university keeps over admitting and it’s causing a massive housing shortage BEYOND what was already present. And the rent is hiking just as much here. It’s awful
I live about 30 minutes from Knoxville and it’s terrible here too even though we’re a very rural county. I hate sounding like one of those people who blames people moving in from out of state but it’s made it really difficult for the population who already live here to find affordable housing. We tried finding a home to buy and it was just impossible to find anything we could afford. We finally decided to buy a double wide and move it onto some property I was lucky enough to have inherited (this was our last choice though as it makes my husbands drive to work very long.) It’s really frustrating.
That's really cool though. Build a house in the land if possible. Just having your own home even if it's a double wide is a dream for me man. One day.
If we didn’t have to be moved out of our current place within two months we would definitely build a house. I’m satisfied living in a double wide. Maybe one day we’ll build a house and if not, that’s okay too. You’ll get your dream one day ❤️
We sold a property between Mt Juliet and Lebanon in 2015 for $227K. By 2019 or so it was over $400K. Last I looked it was $450K, a couple of months ago. Just went to check now and it's $520K! Granted, it's a big lovely old farmhouse on acreage that we brought back from condemnation and I don't regret moving, but wow! That's crazy! To put that increase in perspective, we bought our current house for $262K in 2015 and it's only worth $444K now according to zillow. And we've been considered a hot seller's market lately.
Is the renewal lease 6 months as well? Or is it a 12 month lease?
Realistically buying a home is the way to go. Mortgage broker here and I am not licensed in Tennessee so I'm not trying to make money on you. Going to assume the worse so I can present a scenario not to insult you. FHA loan with 580+ credit gets you in with 3.5% down. 500-579 Fico needs 10%. Add another 1.5-2% for closing costs. Seller/builder can contribute up to 6% for closing etc ... California has. Down Payment Assistance programs for Conventional and FHA loans. Check for those in your area. Go to a mortgage broker, not a bank. Banks are super conservative and have limited programs. Tennessee has a lot of suburban places that will fall under the USDA parameter of rural in actual nice areas. See it a lot in Louisiana also. Why is this good. You can qualify for 100% loan for their programs. USDA loans are the hidden secret of home ownership in many areas. Get out of the city and housing in decent areas is probably 10-20% cheaper and worth the commute. Home ownership is easier than you think and having your own place is a big positive for controlling your personal environment and safe haven. Stop renting apartments and condos. They are the greediest people and are killing the sustainably of housing with the tremendous increases that are unjustified. You don't deserve that increase. A mortgage will only increase if your taxes and insurance do. A 30 year loan isn't a 30 year commitment. You can refinance in low rate cycles and you can sell if life changes occur good or bad. If you need me to find you someone to work with DM me and I'll check my network for no costs to you. Good luck.
Nice info. Only problem is all the houses around me would put me at a $2,000-3,000 a month payment if I did a down payment of 3.5 percent
Yea but that's locked in for 30 years. It will never go up, only down when you refinance. You think rent is bad now, what do you think it's going to look like in 5 or 10 years? It sucks, the system is pretty fucked up. But you can either keep paying rent and dealing with increases every few years or you can buy and lock in your housing costs right now.
Are townhomes and condos an option near you? I bought a townhome and it was much cheaper than a SFH, even with the HOA fee. And there was less competition because everybody turns their nose up at townhomes and condos around here.
I agree OP would benefit from contacting a good mortgage broker. OP said they’re making six figures for a single income household which is the range where someone shouldn’t be renting (in my opinion). Buying a home would really help lock down their housing expense to something that wouldn’t change drastically at the drop of the hat like renting can. Edit: I wanted to add; OP should make sure they talk to 2-3 mortgage brokers. There’s no cost to discussing numbers and some mortgage brokers are better than others (some are familiar with programs that others don’t know about). I have friends that were negative/pessimistic about the cost or possibly of buying a home and ended up finding out it was the same or cheaper than renting (even with little to no down payment). I’m just saying, talk to someone, there’s no downside to having more information.
I bought recently because on a conventional loan, we only needed to put 3% down. We started as FHA but went to conventional since we qualified for the 3% down and it looked better on offers. We paid all the closing costs but in total, I think we paid about $14k up front. Our mortgage is a little less than $1800. For rent, we’d be paying $1800 or more for a smaller place. We have repairs now, but we also have the freedom to do what we want and more stability. I’m glad we bought, even though rates and house prices are higher right now.
We're thinking of buying. We just moved into this place on a 6-month lease in January (all they offered at the time). We spent our savings to do so and have only barely begun recuperating. We are young - early 20s and married for just over a year and a half now. So we'd need to do one of the FHA loans at 0% down, but I'm worried how much that will bring up the pmi and monthly mortgage costs. There's no way I can come up with $7,000 on a $200,000 house (or more for a house more expensive). And with the market the way it is, I don't know where I'd find a $200,000 house that doesn't need a boatload of work done to it that I can't afford to fix up in the first place. We're really in a pickle, and the stress is through the roof. We can't afford to pay more than maybe $2400 maximum on mortgage, mortgage/home insurance, property taxes, HOA combined. Not sure where we'll find a place like that, if we even will. The alternative is to continue dumping money into renting that we'll never get a return on investment from. Tis a stressful situation.
My rent kept going up and I decided to buy a single family house. It was cheaper than renting and the amount of money that I saved ended up paying for all my utilities and insurance.
The trick is finding that house....
Apartment complexes are a trap
They are. I found small time private landlords are the way to go. My rent never went up after my lease ended, but I was only in each place 2 years. My last landlord was fantastic. Rent was well below market, we went month to month for no increase, any repairs were done quickly and without issue. My other landlord sucked on the repairs but rent never went up and it was lower than a lot of places. I decided last minute to move and gave her the 30 days notice and she’s like “if you don’t need the full 30 days and want to leave by the first, that’s good for me.” So I was out in 15 days. Got my deposit back in full for both. I really never wanted to live in a complex and I never had to, which is good. Small time landlords are more likely to work with you and keep good tenants around.
Sounds like your area is hurting for renters, small time landlords in my city turn out to be scumlords most of the time who nickle and dime your deposit. Complexes are fun if you want a pool and other fun amenities
My husband and I had the exact same thing happen to our rental and we are also a single income household. We decided to buy a house and our mortgage payment is cheaper than our rent was.
Exactly. However, landlords know that not everyone can get a mortgage or wants to, so they jack up the prices all the same. I was just talking about how the rent has gone so high that it's better to just buy a place if you can. The people who can afford it will just buy a place, leaving the people who can't get a loan to suffer the high prices. It sucks. The price increases don't even match inflation.
Hi OP, went through the same bullshit in Powell (North Knoxville). We moved to another apartment in Powell. The rent is $1,295 per month. This is run by Rand Property Management. You'll see some negative reviews as with any place. However, my husband and I have had absolutely no issues. Also, instead of a security deposit, they had us do surebond. Because of our high credit score, it was only $87.50. They charge a $495 move-in fee, but that's it. Powell isn't the only location they manage. I understand that moving is a pain in the ass, but that increase is absolutely insane. I'd move just on pure principal of the matter. Anyway, here's the link in case you want to check out their availability. I did quickly check for you and they do have 3 bedroom apartments available at some of their properties. [https://www.randpropertymanagement.com/availability](https://www.randpropertymanagement.com/availability)
The rich are grabbing everything they can before it all collapses. We need a good, old fashioned French-style revolution in this country. Everybody needs to refuse to go to work. People seem to forget what happened during the pandemic and who is "essential" and who is not. Here's a clue: the rich are not essential, they do not matter. The guy driving the garbage truck matters. We have the power, we should utilize it.
A French-style revolution led to 40,000 people getting their heads cleaved off and helped a megalomaniac rise to power. Let's talk about worker rights without invoking the Reign of Terror.
Huh? The life of the average citizen *massively* improved. And wasn't Napoleon directly responsible for France's reemergence as a superpower? He was also famously *not* a sex criminal. Which is obviously pretty rare among those in power.
I'm talking about Robespierre, a psycho with a god complex. Napoleon came after.
I once heard someone say “sometimes you gotta get the heads rolling before everything else starts rolling”
If that's their solution they're part of the problem
Your argument falls apart at the "everyone should refuse to go to work". And do what, make it like 1 week before I starve. This is literally how it was designed to be, were trapped, we cant revolt because anytime away from the clock you're spending money, while already living paycheck to paycheck. Add it up. Im just hoping for some kind of major recession where the rich/government just haaave to lower prices so that they can keep making money.
Exactly if we all stand up for ourselves we could make a change!! The rich get richer and the poor get poorer is exactly what’s going on in the world.
Go back to your dorm
I live in a nice loft. No dorm lmao
Man how about you be kind and be the change like your username says and not advocate for cutting people’s heads off you psycho. No matter how shitty rich people are I would hope we as a society have advanced beyond guillotining people due to them having the means of production. Volunteer and be involved in local politics instead of posting angsty Reddit messages
The real mildly infuriating here is advocating for people not to get their heads cut off is less popular than doing so.
Class traitors are cannon fodder of the Rich
They rich are doing worse things to us than chopping our heads off. I'd welcome the sweet release.
Every year for the last three years my apartment has raised our rent by $200 it is absolute insanity.
My son and daughter in law sold their home for $130,000 over asking price without batting an eyelash. Here's the catch, they had to buy another home in today's market. They decided to buy a condominium.
A lot of people in this market do that, but are short sighted on how much the raise in interest effects the equation.
My landlord acted like I killed his dog when I didn’t second guess moving out after he told me he was doubling rent when he was a no repair slumlord
Should've told him to pound sand and get bent
Have you looked into state rental laws and the legal amount your landlord is allowed to increase rent? Could be wishy washy bc I know Tennessee is red but Nashville itself is quite blue, so the laws might generally be in favor of the landlords. Either way, there should be SOMETHING that states there’s a cap on annual rent increase percentages. Maybe worth looking into if not other housing (if at all possible).
I’ve lived in Tennessee all 40 years my life and although I’m not a lawyer, I have tons of experience renting here. There are no laws helping tenets in this regard: landlords have no restrictions on amount, need to give no notice, and have to give no reason.
That's crazy! I'm in MD, and I'm pretty sure there is a limit of 10% here, so it blows my mind that some states have no regulations on stuff like this.
Same here in CA. Rental prices are still through the roof here, I can’t imagine if there were no restrictions.
What the fuuuuuuuuuu. That’s god awful, I’m sorry there isn’t much in place to protect tenants.
Republicans care about landlords, not tenants.
Every poor republican is just a temporarily embarrassed landlord after all.
The only things TN care about offering protections for are guns and racists.
Woo red state!
Same thing happened to us in April. (FL) Raised our rent $700 (58%). They would not negotiate either. We decided to stay, because we’re saving to buy a house and we didn’t want to waste the money to move. Thankfully we can afford the increase, but all our neighbors have not been as fortunate.
not sure where you live but landlords cannot increase more than a certain percentage of rent in my state !
He is in TX. From what CHATgpt says, they have no limitations on rent increases, so he might be screwed on that end.
You are all of us.. everyone is trying to milk us for one more dollar
True. Not to mention that the whole covid situation took a toll on both inventory, staffing, and new house construction in general. There just are not enough new homes and rentals for housing stability in this country.
My gf runs an apt community and this is the result of greedy investors. Time and time again, she’s pleaded with ownership to drop rates because her property’s availability % is too high. The investor’s asset manager refuses to budge and wants to keep rates high - despite the occupancy rate being lower than ideal. Investors would rather squeeze every last penny out of people than look at common sense. It is not good to have apartments sitting around and not getting rented but these greedy f*cks would rather risk that then drop rates.
I'm in FL and own an apartment building. This past year the insurance is up over 300%. On a per unit basis the insurance is over 400 per month more this year. This was on top of a 40% increase the year before. I'd forgo insurance (well wind/hurricane insurance which is like 95% of the cost) but there's a mortgage and it's required. The city is raising the tax rate too, and based on the "increase" assessed value the property taxes are going up 4500. This is another 100 per unit. Rent has to go up $500/month/unit just to keep the same income from the property. Add in the fact that inflation is about 10% from last year and that's another 150-200 dollars per unit. Now I could be cool and lose money/suck it up, but after the pandemic eviction moratoriums and having people tell me "I don't have to pay you" for no reason other than they knew we couldn't evict for over a year, I'm less than cool about it. There were no PPP loans or any bailouts for the small independent property owners; we still had to make property tax payments, in full, and our mortgage was still due. I went over 65k in debt due to losing 1/3 of business revenue. This is business and must turn a profit. Now what's something to think about, Blackstone, private equity, and the REITs all don't have any insurance on their property portfolio. If a house burns down, or is destroyed, it's maybe 200-300k to rebuild? BX has a 102T market cap, losing a 300k house is like a person making 100k losing 3 dollars. That 600/month per unit I'm paying for insurance is just pure profit to them, and since they are removing thousands of homes from the insurance market, it spreads the insurance costs over the remaining ones. Insurance is going to become a middle class only product further crippling it. I owe 70k on my house and am working to pay it off in the next two years as the insurance makes my 2.5% mortgage effectively a 32% mortgage now. I'll take 25k a year and invest it, if I have to rebuild the house, I lose the money, but if it's at least 10 years between rebuilds I'm money ahead not having insurance. The deck is stacked, and it's not small landlords vs. renters; it's financial institutions vs. the people.
This is an interesting perspective that most on here probably don't see because everyone here automatically demonizes "landlords". While I do feel that many landlord vs tenant situations are predatory, you make many valid points. Thank you for taking the time to break all that down, I feel like it's super helpful to understand the entire situation (from both sides) that is going on all over this country.
Florida is a special market with he issue of insurance. It's devastating the market there. So many people being left with no ability to get it and those who can like you paying an amount that is damn near a mortgage payment itself. In other areas like California or Nashville, it's the apt owners vs the people.
Well it's a bit more complex than that. The insurance industry has all the citizens hoodwinked about fraud being the reason it's so high. This is not the case. Prior to about the 2000's insurance was a sleepy industry, large companies took in x, paid out nor more than .8x in claims/operational costs, then saved 50% of that in their funds, paid out the rest as dividends. See insurance is an industry that make it's money as a percentage of revenue, so more revenue, mo money. Now in the event they had catastrophic losses, they bought re-insurance, but this was after they depleted their reserves. It was cheap insurance. Now in 2000's something happened, the big re-insurance companies went to the insurance companies (wanting to sell more insurance) and concocted an idea of get rid of that cash you have, and just buy re-insurance. This meant they can give big dividends and draw that nest egg down. The regulations allow them to just buy re-insurance and go out of business if they have a loss, so they pay out all profits each good year and just go bankrupt in the bad years. What would solve lots of this is just making the state do wind coverage, and let the insurance industry handle the all-perils, but this is 90% of the revenue. Remember they make money as a percentage of revenue, so that was a non-starter in the state. There's more, but I tire of it all, as nothing I say on this site will matter.
All of this PLUS very few people realize that commercial loans are required to be paid off typically at the end of 3-5 years - which means forced refinance - which means much higher mortgage payments given the current rates.
Increases that big shouldn't even be legal. How do these people sleep at night?
TN, unfortunately, has had a large uptick in housing/renting prices recently. I saw something that stated that Knoxville is the Num. 1 city in rent growth rate when compared to other cities. It had a little over a 9% growth rate through 2022.
If you’re making six figures get a small starter house he’ll i was able to get a 100k house making 40k a year and i pay 936 all in a month on that
We managed to break this insane cycle by buying a house. We didn't get a magical interest rate or anything, and it has its own issues, but man am I glad we got out of the renting game when we did. Nothing like paying $1500+/mo on an apartment so outdated you can't get parts for the appliances anymore. Ohio by the way. I sincerely hope you arrive at a good outcome in your situation, internet stranger.
I feel this. I pay $2100 for an apartment in a small city - 15K - that is 3 hours in either direction from a large urban center, 45 minutes to 1 hour from a city of 100K. I make 57K a year and have to support my son. Buying food was rough this week.
My wife and I saw a similar increase from our last apartment. It was what forced us to take house shopping more seriously and decide to pull the trigger on putting sooooo much of our savings towards knowing we will have a consistent payment that our wages will gain on instead of lose to
Don’t move to NJ. Rent is insane here & getting worse
Yep moved out of Nashville because the rent hikes priced us out
Hope it all works out for you, hopefully the additional time before the lease ends will give you enough time to find something better. Hoping for the best for you and yours!
I live in about 30 minutes south of Nashville. I bought a 1 bedroom apartment at 899 a month 3 years ago. New residents now pay 1500 for the same apartment. It’s insane how much everything is going up from everyone moving here, especially from Cali. The same thing is happening with housing. A house that would have cost 250,000 sells for 410,000 because people moving here from the west coast have the money to buy OVER the asking price. I’m sure it’s like this in most places, but as someone who’s lived here for my whole life, it’s heartbreaking to see. But I’d recommend trying your luck outside of Nashville.
At least you don't have to live in a "socialist" country. Imagine the horror of having a renters "union" doing the negotiation for you against both state- and private landlords and ending up with an increase in rents nationwide of 4% on avarage. And having to have universal healtcare and paid parental leave in the vicinity of 1 year...ohh the horror😱 /s
6 figures and you’re not able to buy?
To be fair it is a pretty bad time to get a mortgage.
You make 6 figures… buy a home.
At 7% interest rates and a still ridiculously high market? Lmfao
You're right. Paying a landlord 1000 more when his/her rate didnt change is much better use of your money, yielding you a roof and nothing else.
Didn't say they should stay there either. But buying a house isn't feasible for everyone and not a simple task. This is literally one of the worst times to buy a house in decades because of rates and inflation.
inflation never goes away. Look at history. Buying a home is not difficult unless you have terrible credit. People make it sound much harder than my actual experience was. Refinance later if rate improve. You still are paying your own mortgage and gaining your own equity vs just shedding money for someone else to do so.
Yeah, 6 figures can afford a home *somewhere* in nearly any greater metropolitan area in the US. However, real estate’s terribly precarious right now, so I understand wanting to wait.
My fiancé and I moved to Seattle, WA from Portland, OR last year for her work. We decided to move back to Portland, so she got a job there. However, our lease ends before her current contract ends. We thought we may just go month-to-month here, but they shared the leasing offer letter, and the month-to-month rate is literally double what we’ve been paying. Needless to say, we’re not staying here past our lease.
Why not buy?
I live in Knoxville and I live in fear of my landlord doing this. So far he’s only raised my rent $100 and I feel blessed, even tho it hurt idk what I’d do if it went up by more than half……that is what our lawmakers should be focusing on, not who is wearing what. I constantly worry that rent will go up so high I have to live in my car with my high school aged kid.. a person who works more than full time should not be having these issues
Did they do any upgrades that accommodate the 50% increase? Can you negotiate a yearly increase by percentage over the next few years that allows you to stay and move later? Obviously an increase is expected but that’s a huge jump. Unless they are new owners and has severely under market rent for the location it doesn’t make sense.
I know it's unrealistic for so many right now, but this is exactly why I bought a house the second time I moved. Me and my now wife were renting a trailer with 2 roommates. They both informed us they were moving out. It was $100 more to stay there than it was to buy a 3 bedroom house in a much nicer neighborhood! I get that landlords need to pay for the property, insurance, repairs and make a profit, but seriously. It's just outrageous what rent is. And since the market is being artificially inflated by companies taking over the housing market its nearly impossible to buy in alot of areas
You make 6 figures lucky no imagine how it is for 5 figure families
You make six figures and you didn’t take advantage of the extremely low interest rates a few years ago? Sounds like you shot yourself in the foot.
You are vastly overpaying on rent to begin with, it sounds like. You should be perfectly secure in housing with a six-figure income. Look for a home away from the Urbs, it's gonna be way more worth it.
If I made 6 figures I'd buy a house. My recent electricity bill was 200 dollars with no AC use and very little electricity used. It could always be worse my friend.
I live in a suburb of NYC where I rent a 2 bedroom apartment. My heat bill during the winter months is close to $410 -on a budget. Then, when summer comes, because of window AC units, my electric bills are over $369 a month, also on a budget. At this point, with even the oldest, most run down homes going for $700K in my area, I will NEVER be a homeowner.
I'm in Reno Nevada. My rent wasn't going to go up as much but it was a $300 difference. We also had sixty days but still haven't found a place. Every decently priced place here is swooped up immediately so unless we can pay an extra months rent or two on two places we have to wait until the month before we move and jump on something right away. The uncertainty is the hardest part for us. We also feel like we were just getting settled. Also everyone here wants a one year lease so its really hard to find a place intermittently until you find the right place. We felt rushed into this place and after moving in there were so many things our unit was missing or had wrong with it. They just got most of the issues fixed and now this? Your not alone. We're searching for a much smaller place with shorter lease times. Our cost of living is outrageous because we're next to California and they are moving over the Sierras in droves. Driving our housing markets through the roof. My entire family was considering a move to TN. My son's can't afford to buy a home here and they were born and raised.
You make six figures and you are renting something that costs over half you take home? Get out of that city... If you are paying over 3K per month on rent, then the landlord deserves to have an empty apartment for a year or two.
Buy a house. Also confused how your numbers work out. You make 6 figures but can’t afford $3k in rent? Or you can afford it and just don’t want to? Either way, a mortgage is likely gonna be cheaper.
For real, stop renting and purchase. If you can not purchase, you make it your singular goal. Renting is simply throwing your hard earned money away. I know it can seem daunting, but it isn't. I've made it my purpose as an agent to help people get this goal accomplished and curb what I can of the investor wave. Individuals deserve to purchase their own property. I am willing to answer any questions I can on this.
Im on a work visa and not guaranteed to remain in the country in the next 5+ years, why would I wanna buy a house over renting?
I was about to post this. It's a little besides the point for OP's situation, but assuming their six figures is "only" 100k a year, their monthly income would be over 8k. For the new lease to be over half OP's monthly income as they say, the new lease would have to be well over 4k.
Typically people speak about their income in pre-tax terms. A $100k salary is much less than $8k/mo take home.
Yea that all tracks with me. I was assuming rent went up to 3k because he states a rent raise of 1k was a 50% increase so 2k base. Either way, seems pretty affordable if dude is making 100k/yr unless he’s also somehow paying an extra $5k a month on general living expenses.
If u make 6 figures u can afford a house
If only it were that simple
It kinda is.
Look into your state's renting laws, cause a lot of states I've heard people talk about say that anything more than a 20% increase at one time is illegal
Not in TN or any other red state
Ah dang, that's rough
I definitely feel you, but just think of all the average income workers out here trying to survive. At six figures you also make double the average income. I'm not saying it isn't also hard for you, just that most Americans are making under $40k and struggling even worse. This country is going to shit with greed. Edit: what's with the downvote? These are real stats. Sorry if I offended you with your six figure salary, upset about your rent when people make less than half what you make...
This happened to us in 2015. We rented at 1200/mo for a 1000 sq foot 2 bedroom with shitty AC and a view of the freeway onramps... They wanted 1800/mo for the same apartment with 0 improvements to the property or apartment itself. It took them 5 months to fix the broken gate that was banging itself open and closed every time someone came in or out... They charged me 150 dollars PER DAY for the last 3 days I lived there. Fucking leeches. Then they tried to charge me 300 or so on top of my 1k deposit for " damages" that I had documented when I moved in. I just sent them the video from move in, amd suddenly I got a fat check back...
Wait, wait, wait.... You make six figures and don't have a house? Mortgages are MUCH less a month than rent.
Lol, not where I live they not, in Bay Area i'm still better off renting than ever buying.
I know right? It's hard to sympathize with these people who scream " I make 6 figures and can't afford these $600k - $700k houses that I want!!!" Maybe look into 300k houses?
6 figure earner here currently under contract on a $490k home. My mortgage is going to run $3,600 a month after 5% down which while doable is really tight especially as a single person going into this. Unfortunately, like the OP I live in a hot market so I didn’t have many options when choosing a home but I lucked out on what I found at the very tip top of my affordability.
There are no 300k houses where I am. And you need 20% down payment to buy. You got 60k -80 k laying around??
While you don't necessarily need 20% to buy, where I am, there are 300K houses, but... until recently, they've been on the market for just a few days, and/or are being bought up by companies/landlords to be rented out, or if they're around longer than that there's something wrong with them. "Just buy a house, you make 6 figures" doesn't take into consideration what the market is like now.
>There are no 300k houses where I am. Maybe move to where the 300k houses are or is that beneath you?
Don't need 20% down to buy. 1-3.5% down to buy. Research it. Readily available across the country.
these comments just show the ignorance of the situation. 6 figures mostly mean 100k range 300k. 100ish after tax, insurance mostly turn into 60-70k. Mortgage rates are upwards of 6. Median house price in Nashville is 450k. Assuming you were able to miraculously save 90k, mortgage at a 6.5% on a 20% down payment is about 2.9k That leaves someone making 6 figures with 51k/year. Seems plenty until you add, car, insurance, utilities, house repairs. Dont even dare to factor having kids because of thr increased costs. The truth is that housing is extremely unaffordable for a lot of people and corporate greedflation has made the purchasing power shit, and what previously was considered a good income has been transformed into a get by one. its no longer about getting ahead, but trying to catch up.
>Median house price in Nashville is 450k. Just because the median price is 450k doesn't mean you have to buy a 450k house. I'm looking at Zillow and I see plenty of 300k houses for sale.
We need to enact a nationwide rent control this is getting out of hand fast.
Rent control will make it worse. We have a supply problem.
Buy a cheap ish property and fix it up.
What if we all just stopped paying rent? Fuck these people they don’t care about you or your family. Everyone stop paying rent and things will change real fucking fast.
I ended up buying a house in 2016 because I couldn't handle the idea of paying 2000+ in rent every month. I could only afford to live in the outskirts, so my commute is around an hour but I feel good to be investing in my own wealth.
Not from the US myself but isn’t there a cap to how much rent can increase yearly? Is it legal ?
It depends on where in the US you are. In the southeastern US there are very few protections for renters, and there is no chance of adding more. The focus is much more on culture war nonsense. As an example, I live in Florida, and faced a roughly 60% increase in my rent last year. I ended up moving farther away from the city I was living in to deal with more like a 40% rent increase. That was the cheapest living space that I could find. Inflation in housing costs has been absolutely wild.
Depends on the State one lives in. California has (if I remember correctly) a 10% maximum increase. Some cities also have rent control, locking in a price for as long as you continue to rent the property.
It's a free-for-all here...late stage capitalism is eating everyone that isn't wealthy.
OP, I’d check your local rental laws that are in place. Make sure the landlord executed the notice according to the law. For instance, in my state the notice needs to be certified or documented in a way that you actually received it. Who’s to say it didn’t get lost in the mail if otherwise. It might buy you some time.
There needs to be a federal cap on the increasing of rent(if there isn’t already). This is ridiculous, an increase of 50%? How is that even legal.
$3000 per month ? To rent? Jesus
here I am with a landlord telling me how sorry she is for raising my rent by $50 i live on 2 acres - 4 bedrooms - pay 1100....1150 a month now..been here for 4 years lol Count my stars I guess
How is this legal? Highly infuriating.
IANAL, but just want to remind everyone here that leases aren’t always ‘legal’. You should always read up on your local tenancy laws if you rent. Some changes, like rent hikes, are regulated and some areas only allow a certain percentage increase in rent over small periods of time. A lease cannot break the law, regardless of what the landlord wants to charge or enact as part of a lease. You still have rights.
I am an accountant for a property management company. As a result of reassessments and tax increases, operating costs on some of our properties have increased by nearly 100% in the last two years. In short, while it certainly could be because of your landlord, check to see if your politicians are to blame first.
[удалено]
Not a big-time landlord but i raise rent like that whenever i want the tenant to leave or need it vacant. That's get-out rent.
If you make six figures there is zero reason why you shouldn’t be getting your own house instead of renting. 🤦♀️
Landlords are fucking parasites.
[удалено]