Rent vs. Stability
I hope you had a great weekend! I know I did, and I spent a lot of time visiting friends and family. Earlier last week, an article was published in the Wall Street Journal that compared rents to incomes. The article showed that while incomes remained flat, rents continue to rise. Next, I saw a second article comparing the size of apartments built in the 1980s versus today. Apartment sizes have shrank over the last 30+ years.
Renters are paying more for less, and they’re doing it on a smaller income.
Then I spoke with some friends who rent. They all report the same things- $50 a month or more rent increases, non-renewal of leases in order for the landlord to offer worse terms, the quality of rental properties falling, heavy competition for even moderately updated rentals, and one friend reported a request to “bid” above the asking rent in order to secure their place!
In my own life as a landlord, the last few years have been great. Competition for my units is keen, rents rise yearly with no slack in demand, and tenants are careful not to do anything to rock the boat. Sure, this is great for us landlords! But what about you renters?
Here’s a thought for the renters reading this blog. Do you know that “fixed” loans mean just that? So long as you make your payments on time and in full, your mortgage is fixed! It will never rise and your terms will never change. If you buy a house today and your payment is $900/mo, your payment will always be $900/mo. There’s no landlord to raise your rent, change your terms, or kick you out to make more profit on someone else!
If it’s time for stability and you want to stop giving more money to a landlord, give Mike Kwiatkowski a call! He will be happy to help you lock in savings and avoid those constant ugly rent increases.