I got hit 20 percent last year, and 20% this year. I got the same BS excuse. “Insurance is up, fuel is up, costsof materials are up (the building is owned outright and they don’t do any repairs on the leaky roof or drips in the plumbing), blah blah blah we are so sad and hurting that we have to raise your rent another 20%.” Bidenomics at work. Greatest economy ever...
In addition to the normal expenses, many landlords haven't been collecting rents due to Covid moratoriums. In California, the moratoriums lasted for over two years. No rents, despite landlords having to continue paying expenses.
It may not be a BS excuse.
I’m in property management. My company oversees and provides services to approximately 70,000 families.
We saw huge premium increases the last 3 years on insurance across the board, even for properties that had no claims. On one property, the insurance went from $195,000 per year to $300,000 a year at renewal.
Gas prices went up, so landscaping costs went up. Unless you want to pay for a bunch of illegals on the cheap, you pay more.
Pool chemical hard costs went up 40%. I know; some of our communities have CPOs (certified pool operators) on staff and by their chemicals direct.
One property had the local water district raise the water rates. The monthly water bills went from $10K average per month to $18K per month under the new rate.
Also, as a property ages, more maintenance is required. Roofs used to be insured for replacement value up to 15 years, now it’s 12. Deductibles used to be $25K per property, now they range from $100K to a million.
I’m seeing upward price pressures all over on things beyond our control.
As a risk manager, holding back costs while staying compliant with increasing regulations in an inflationary market is an impossible task.
You’re right, though. It’s in part due to Bidenomics.
You want to speak to the local housing authority or Fair Housing. They can offer free legal and let you know what your rights are.
“The Landlord’s here to visit
They’re blasting disco down below
Sez, “I’m doubling up the rent
Cos the building’s condemned
You’re gonna help me buy City Hall”
But we can, you know we can
But we can, you know we can
Let’s lynch the landlord man”