This is in regards to Heidi Marion’s letter about high rents.
Rents and housing prices are high right now. And it’s for a very simple reason … supply and demand.
With a housing shortage, the house that went for $300,000 is now $350,000, or more.
When the mortgage payment on a rental property goes up, it’s not unrealistic that the rent for that property goes up as well.
A landlord has a rental property with the expectations that they’ll make some money. They also have to deal with the messes left behind by bad tenants, repairs and general maintenance.
These costs all come out of their profits. If they don’t have a renter for a month or so, then they’re paying the mortgage out of those profits (or their own pocket).
You want rents to go down? Don’t complain about the landlords, complain that the city and YTG are not opening up enough subdivisions. There’s no reason why a house that should cost $350,000 is going for $500,000.
A landlord’s responsibility is to ensure that they hold up their end of the bargain. This is business, and has nothing to do with being fair. Life isn’t fair, so you had better get used to it.
If the tenant can’t afford $1,600 a month, then don’t rent it. Or get roommates, a better job or move.
You have choices.
If the single mom can’t afford the rent, move. Don’t try and blame a landlord for a parent’s decision, and say that it’s the landlord’s fault that Sally can’t go to piano lessons.
The tenant knew exactly what they’re getting into when they sign the rental agreement. This place is X amount. If that doesn’t fit their budget, then it’s their own damn fault. No one is forcing them to rent that particular home.
If the landlord is having a problem renting their place, they have two choices. They either lower the rent or hold out and keep the place empty until they get what they’re looking for.
Again it’s supply and demand.
If the market will bear someone charging $1,600 for a place, why would they only charge $1,000 Ã especially if that doesn’t even cover their mortgage, insurance, condo fees and property tax?
It’s not the landlords’ fault that there’s a housing shortage. They’re simply capitalizing on it, and I would encourage anyone with the funds to do the same. Just know the difference between the market rate (which is fair Ã whether you like it or not) and gouging someone.
At some point, however, things will change.
Housing prices will likely go down a bit, and rents will almost certainly follow suit. Again, it all comes back to supply and demand, and what the market will bear. There is nothing more fair than that.
But complaining the landlords are all the cause, or that they should charge below market rate out of the goodness of their hearts or some socialist ideology is completely asinine.