Lower the Rent (by JB [OR]) Mar 15, 2019 8:32 AM|
Lower the Rent (by NE [PA]) Mar 15, 2019 8:37 AM
Lower the Rent (by Doogie [KS]) Mar 15, 2019 8:37 AM
Lower the Rent (by NE [PA]) Mar 15, 2019 8:38 AM
Lower the Rent (by Oregon Woodsmoke [ID]) Mar 15, 2019 8:56 AM
Lower the Rent (by Oregon Woodsmoke [ID]) Mar 15, 2019 8:57 AM
Lower the Rent (by Moshe [CA]) Mar 15, 2019 9:35 AM
Lower the Rent (by nhsailmaker [NH]) Mar 15, 2019 9:54 AM
Lower the Rent (by CGB [MI]) Mar 15, 2019 10:03 AM
Lower the Rent (by Lana [IN]) Mar 15, 2019 10:06 AM
Lower the Rent (by Jeff [CO]) Mar 15, 2019 10:35 AM
Lower the Rent (by Live The Dream [AZ]) Mar 15, 2019 11:12 AM
Lower the Rent (by Ken [NY]) Mar 15, 2019 11:14 AM
Lower the Rent (by plenty [MO]) Mar 15, 2019 11:19 AM
Lower the Rent (by Landlord ofthe Flies [TX]) Mar 15, 2019 12:11 PM
Lower the Rent (by Cee [AZ]) Mar 15, 2019 12:16 PM
Lower the Rent (by NE [PA]) Mar 15, 2019 12:20 PM
Lower the Rent (by razorback_tim [AR]) Mar 15, 2019 12:27 PM
Lower the Rent (by myob [GA]) Mar 15, 2019 12:31 PM
Lower the Rent (by S i d [MO]) Mar 15, 2019 12:34 PM
Lower the Rent (by NE [PA]) Mar 15, 2019 12:50 PM
Lower the Rent (by myob [GA]) Mar 15, 2019 1:06 PM
Lower the Rent (by Stephen [ON]) Mar 15, 2019 1:08 PM
Lower the Rent (by JB [OR]) Mar 15, 2019 1:48 PM
Lower the Rent (by WMH [NC]) Mar 15, 2019 2:03 PM
Lower the Rent (by myob [GA]) Mar 15, 2019 2:35 PM
Lower the Rent (by Robert J [CA]) Mar 15, 2019 5:07 PM
Lower the Rent (by Robert,OntarioCanada [ON]) Mar 15, 2019 5:07 PM
Lower the Rent (by Vee [OH]) Mar 15, 2019 5:17 PM
Lower the Rent (by JB [OR]) Mar 15, 2019 7:10 PM
Lower the Rent (by myob [GA]) Mar 16, 2019 5:06 AM
Lower the Rent (by Robert,OntarioCanada [ON]) Mar 16, 2019 1:43 PM
Lower the Rent (by JB [OR]) Mar 16, 2019 8:27 PM
Lower the Rent (by Salernitana [CA]) Mar 16, 2019 9:20 PM
Lower the Rent (by Qcjo’h [CT]) Mar 16, 2019 10:24 PM
Lower the Rent (by Cjo’h [CT]) Mar 16, 2019 10:55 PM
Lower the Rent (by rentON [PA]) Mar 17, 2019 3:06 AM
Lower the Rent (by JB [OR]) Posted on: Mar 15, 2019 8:32 AM
Longtime thirty-something tenants just called, basically begging for us to lower the rent so they can stay in the house. Mother is no longer helping to make the rent payment, so they are claiming they can no longer afford it, but assured us they "really want to stay."
Because they have kept the place pretty clean, I have kept their rent just under market rates. Both of them work, but have at least three days off each week to add a part-time job or earn extra money. I guess it's just easier to ask me to help than to get a few extra work hours...
BTW, they "are willing to help me with my rental properties in whatever I need done." I doubt that it a smart option.
Observations: Tenants were smokers for years. I think they may have given up the cigarettes by now. They drink entirely too much. They have two used vehicles I believe making payments on both.
I'm sure I'll just get back to them and tell them, "No, sorry. I can't help you," but just wondering how you all would handle this.
Lower the Rent (by NE [PA]) Posted on: Mar 15, 2019 8:37 AM
I'm glad to see that you are not just a greedy landlord and are actually thinking about taking this into consideration. On a single-family home, I would consider this and have done this. I also have done it and multi units, but I rarely do that, because I don't want the word spread.
Think about it from my business standpoint. How much of a vacancy are you going to have? How much turnover cost? I would ask him what they were thinking as far as a reduction and work up from there. If they're paying 1000 now and want to reduce it to 900, split the difference at 950 and have them sign another year lease.
If it gets to that point, just let them know that this is a one time thing and it won't be reduced again. If you can turn the unit quickly with minimal work and get a higher rent, then by all means let the market forces of supply and demand dictate that like any other business person would. --50.32.xxx.xxx
Lower the Rent (by Doogie [KS]) Posted on: Mar 15, 2019 8:37 AM
Someone on here stated one time they way they responded to that question (although I think it was at the looking stage, not a current tenant). They responded "Would you be willing to take a $1/hour paycut from your job?" When they say no, explain to them that's what they're asking you to do. I tried this one time with a prospect and they hung up on me. I figured that would be the reaction, so it didn't bother me. With a current tenant, it might be a different story.
If it were me, I would tell them I did some research into market rents in their area for comparable houses after they asked about the rent change. My findings indicated their rent was actually under market rate by $X amount. You are willing to leave it at the current rate if it works for them, but you cannot lower it. You understand if they have to move as a result, but lease/law requires a XX day notice to do so. --72.209.xxx.xxx
Lower the Rent (by NE [PA]) Posted on: Mar 15, 2019 8:38 AM
* meant to say: think about it from a business standpoint, not my business standpoint. --50.32.xxx.xxx
Lower the Rent (by Oregon Woodsmoke [ID]) Posted on: Mar 15, 2019 8:56 AM
They are already under market rent. You are in Oregon and whatever you drop the rent to is going to be your legal rent level.
They have some days off and there are plenty of job openings going begging in Oregon for them to make up the difference.
If you want to help them out, you can tell them no reduction but that you were planning on raising the rent this year and are willing to postpone that for a year to help them out.
Give them this and they are going to expect you to slip into their mother's job of supporting them. This won't be the last "help us out" request. --98.146.xxx.xxx
Lower the Rent (by Oregon Woodsmoke [ID]) Posted on: Mar 15, 2019 8:57 AM
My best advice is that they are under market rent so you really should be raising them up closer to market. It's now become important in Oregon to stay as close to market rate as you can get. --98.146.xxx.xxx
Lower the Rent (by Moshe [CA]) Posted on: Mar 15, 2019 9:35 AM
It all depends on your market. If you expect to easily find a new tenant with equal attributes, then you don't need to lower the rent for this tenant's convenience. If you do anticipate difficulty to re-rent, then you need to weigh all the factors (inconvenience, possible prolonged vacancy, need to settle for a less desirable tenant, cost of turnover, possible increase or decrease in rent) in deciding if these tenants are worth making a concession in order to keep them.
OR has already brought in rent control, although a relatively liberal scheme. But if you are too greedy, then the present controlled raise of 7% + CPI may turn into a more realistic rent-stabilizing limit that may seriously cramp your landlord style.
Lower the Rent (by nhsailmaker [NH]) Posted on: Mar 15, 2019 9:54 AM
See ya !!! --73.182.xxx.xxx
Lower the Rent (by CGB [MI]) Posted on: Mar 15, 2019 10:03 AM
I would say no. Make sure they know that paying rent is a priority otherwise you will follow the lease, follow the law and evict them. If the only way they could afford the place was with help from Mom, how did they qualify for the place in the beginning? --50.77.xxx.xxx
Lower the Rent (by Lana [IN]) Posted on: Mar 15, 2019 10:06 AM
Wow, you grow em right in Oregon. Mommy cut apron strings at last and now rather than buckle down, grow up, and do what they have to, they want you to help. Millennials are a breed apart. I wonder what their monthly smartphone bills are?
Woodsmoke has it right and so does nhsailmaker. --216.23.xxx.xx
Lower the Rent (by Jeff [CO]) Posted on: Mar 15, 2019 10:35 AM
You talk to your tenants by phone, you allow smoking, and you know WAY too much about your tenants.
I'm sure that all played into their request. They probably see you as a friend.
Lower the Rent (by Live The Dream [AZ]) Posted on: Mar 15, 2019 11:12 AM
I would reply with, "I'm so sorry, I really appreciate your being my tenants, and I haven't wanted to say anything because I understand your challenges but I've already been subsidising the property for some time (under market but don't specify) and I can't rent any lower and cover the taxes, insurance and mortgage. In fact I really need to increase the rate soon. (Pending rent control.) Maybe you could find a second job?"
And with the pending rent control you may want to broom 'em and get new tenants in that can be trained for regular increases.
I'm curious how all this is going to work when hyperinflation kicks in ala other countries with unpayable debt and rents increase by thousands a month. Sounds like a good topic for another thread. --47.216.xx.xxx
Lower the Rent (by Ken [NY]) Posted on: Mar 15, 2019 11:14 AM
In Oregon with rent control there is no way I would even consider it,it might be a good time to sell the place now anyway,market is good and socialist making the laws makes it a good time to sell --72.231.xxx.xxx
Lower the Rent (by plenty [MO]) Posted on: Mar 15, 2019 11:19 AM
If i was going to consider this i would ask for 2 months bank statements and their written budget. A budget they have given carefuly thought to and matches their bank statements. Are they ask for $25 or something higher like $200? If alot then i would not be helping... perhaps concern a renr discount for paying on time ... so they actually end up paying a little less but if something go south your lease amount rent is higher. --99.203.xx.xxx
Lower the Rent (by Landlord ofthe Flies [TX]) Posted on: Mar 15, 2019 12:11 PM
This reduction, should you grant it, will only be the start, not the end of the situation.
Basically you have two choices:
1. Give them an additional discount on an already discounted rental, give them enough time to struggle to pay it, keep lowering it, offer payback program, wait for all that to fail and debt to accumulate, then evict. This option has no benefit to you whatsoever, and you'll be hated once you reach a point that you won't discount any further.
2. Give them a quick and peaceful exit strategy that won't harm their credit, then rent the house for a higher rent to tenants that can afford the market rent. --108.69.xxx.xxx
Lower the Rent (by Cee [AZ]) Posted on: Mar 15, 2019 12:16 PM
"Longtime thirty-something tenants just called, basically begging for us to lower the rent so they can stay in the house."
Wow, this sounds familiar. Except our tenants wanted a year of FREE rent.
They even threw in the "we'll fix up your house for you" carrot. As if I'd allow that.
From my point of view, when you get a request like this it's nothing but trouble. --166.137.xxx.xxx
Lower the Rent (by NE [PA]) Posted on: Mar 15, 2019 12:20 PM
If you end up keeping them, I would definitely run new applications to see if they even qualify at all. --174.201.xx.x
Lower the Rent (by razorback_tim [AR]) Posted on: Mar 15, 2019 12:27 PM
Since they are under market I would be inclined to say no. I don’t know what your RC law looks like but I works guess that the longer you stay under market the more you are going to regret it. --166.137.xxx.xx
Lower the Rent (by myob [GA]) Posted on: Mar 15, 2019 12:31 PM
NE that was nice that a LL who wants to get rent up is GREEDY. Nice that as a business renting property he's taking less for than he should. Boy oh boy! some of you are really winners. With That said. JB your not in the make money business from what you posted. Your not in the make money from your rental business either. Long term tenant-- thirty -- is that 30 years as your tenant? Let's hope not? Apparently they don't work full time only 4 days a week-- gee isn't that nice-- they work 4 days a week so you can work 7 to SUPPORT THEM. They are laughing it up -- smoking 200.00 cartons of smokes a week X's 2 and -- oh yea they stopped drinking-- that's a joke. Oh but they help you on rentals-- whoop dee doo!. Is that while they're drunk?
Here's a reality check-- just sign the deed over. I will bet your quote unquote "just below market rent" is smoke to.
Lower the Rent (by S i d [MO]) Posted on: Mar 15, 2019 12:34 PM
You're under state-wide rent control, if memory serves. Get those rents up as high as you can as quickly as you can before they decide to "expand" on that good idea and limit rent increases to 2% per annum. --173.20.xxx.xxx
Lower the Rent (by NE [PA]) Posted on: Mar 15, 2019 12:50 PM
Myob, that is referencing many past posts that you may have missed cruising on tenant rent! :) --50.32.xxx.xxx
Lower the Rent (by myob [GA]) Posted on: Mar 15, 2019 1:06 PM
even while cruising i keep myself updated on this site--.
OH yea of little faith. FYI I get free internet with our cruise status. SOMETIMES i EVEN SNEAK IN A POST OR 2 FROM FAR AWAY LANDS -- AKA MX.
NE can I mention turn over cost and my take on that? We move out residents pretty often-- almost always because they broke the lease or have late or skip out. That doesn't really bother me because I know they're going to leave a mess-- it's natural for them. So most repair is covered by there deposit and the amount we charge and they have agreed to pay at move in time should there be damages. Most of the repair bills (aka upgrades) are in the 8 to 900 dollar range with 4 to 5K range in missing rent. Dep's are in the 1K to 1,200 range while some are 2K.
As an example of damages: ceiling fan blade broken-- you can't just get one blade? so new fan from dep. Tenant tried to tile in front of fireplace-- cut new carpet and started tile never finished 600.00 in damages. Mowing 200. front 200 for back -- so who's paying for upgraded property-- me the LL? or oh god forbid the tenant? YOU ANSWER THAT. FACT long term tenants ruin property's and keep rent down and get ENTITLED. --99.103.xxx.xxx
Lower the Rent (by Stephen [ON]) Posted on: Mar 15, 2019 1:08 PM
JB you have entered an era of rent control in OR and you can bet that those behind it see CPI + 7% as just the thin end of the wedge. Pretty soon the cries will go up that greedy landlords must be limited to CPI alone. My message to you is that you need market rents now. Your tenants are marginal and rather than looking to boost their income they are looking to you to unilaterally cut their expenses. This is no way to run a railroad. I would tell them that you cannot cut rent and that in fact there will have to be progressive increases to get to market rents over a set period, say 1-2 years. Then the ball is in their court. All the stories coming out of OR surrounding the rent control furore focused on low vacancy rates and great difficulties for tenants in finding rental units. If this is true you should not have much difficulty in finding decent tenants who are willing to pay you what your property is worth. Do not get taken for a ride. Act now to protect your interests. --64.228.xxx.xxx
Lower the Rent (by JB [OR]) Posted on: Mar 15, 2019 1:48 PM
Yeah. I must say I was not taking the rent control aspect into it. I have been giving them annual increases but rents we're increasing a little faster.
For myob who thinks my rent is probably half of what it should be, it is actually about 7 percent under market. --172.56.xx.xxx
Lower the Rent (by WMH [NC]) Posted on: Mar 15, 2019 2:03 PM
LOWER the rent? Never. Not RAISE the rent? Sometimes. --50.82.xxx.xx
Lower the Rent (by myob [GA]) Posted on: Mar 15, 2019 2:35 PM
JB I love your posts and respect your take on things. Your rent is 7% below-- sorry --- but be the trendsetter and get it at 10% above with nice shiny new place. Nothing says LL's here have to be below rent averages. It's worn like a badge of honor-- and people brag on it.
Upgrades and updates on past tenant. As tenants are rotated through year after year pretty soon-- EVERYTHING is new and on previous tenant's.
Turn time is negligible also since they haven't entrenched themselves in your unit.
Our last tenant left on Monday paid the whole month $875.00 - house was rented with Dep on Tuesday the 12th (2,000) and just signed lease at 3pm today with 536.00 prorated rent. new rent is 950.00. We'll be making an extra 1K per year from last years rent. So no fear in increasing.
As experienced LL's how long does it take to flip the place when tenant is only in there 1 year? Repainted inside in 3 hours. Cleaned - which we charged tenant for 2 baths at 155. ea. kitchen 160.00, inside windows at $5 ea times 11. Repaired that Botched tile job 600.00.
You think I'm paying for that-- think again. --99.103.xxx.xxx
Lower the Rent (by Robert J [CA]) Posted on: Mar 15, 2019 5:07 PM
Over the years my "partners" always complained that I was too soft and always allowed tenants to walk all over me with properties I owned by my self! Not true. Instead of having 30 vacancies at the same time, I worked with tenants for my benefit by allowing short term discounts or late payments.
Then several of "our" long term tenants renting single family homes couldn't even afford their "lower than market" rents. So I told my partners, who owned an equal share, "we're going to have to get rid of these tenants and then re-hab the property to put it back on the rental market".
My partners cried, "I can't afford to pay my share of an entire remodel. Kitchen, bathrooms, interior and exterior painting, new roof, wood flooring and window treatments"! I mentioned we also had to replace the windows and air/hearing system.
INSTEAD they wanted me to "Work it out" and keep these tenants to save them the expense of a turn over!
So when the show was on the other foot, they didn't act so trough...Here in our area a total rehab runs between $60,000 and $80,000 on a $600K home. --47.156.xx.xx
Lower the Rent (by Robert,OntarioCanada [ON]) Posted on: Mar 15, 2019 5:07 PM
What happens when they bring in rent registry part of rent control then it is impossible to increase rents beyond the annual allowed rent increase. Suppose in the future a replacement of a roof or heating system along with other expensive repairs then where are funds going to come from. The extreme leftist socialist look at rental housing providers as a rich then if they go bankrupt the government takes where rent control ends. In the province of Ontario they have reduced the annual allowed rent increases below the annual increases in a operating costs. The first thing that happens when rent control becomes reality the secondary rental market disappears where houses, townhouses and condominiums are sold as the owners leave the rental housing market. Vacancy rates to down to zero. Now is the time to tolerate a vacancy then increase to at least the market as soon that opportunity is no longer possible. Smoking is million dollar habit where over a lifetime one can invest then have a million dollars. This is a business that is facing uncertain future when rent control becomes reality. --147.194.xxx.xx
Lower the Rent (by Vee [OH]) Posted on: Mar 15, 2019 5:17 PM
Count me as another one sitting at the increase table, guide them where to get boxes before you discover the deposit is already too low from previous rent increases, inspect now for damages then Bill next month rent cycle.
Lower the Rent (by JB [OR]) Posted on: Mar 15, 2019 7:10 PM
Something else that seals the deal. I just remembered they recently purchased a new Samsung TV bigger than my car. I think I'll suggest they return the TV and find another job. Like WSmoke says, employers are going begging for workers around here. --24.20.xxx.xxx
Lower the Rent (by myob [GA]) Posted on: Mar 16, 2019 5:06 AM
JB OR that's my point exactly. We LL's have been scrapping by for years because people were hurting and we got lenient.
NOW there's work and plenty of it. Flipping burgers pays 15.75 and hour for gosh sake. So if you can't make it now-- in this workers economy-- SHUT THE DOORS. --99.103.xxx.xxx
Lower the Rent (by Robert,OntarioCanada [ON]) Posted on: Mar 16, 2019 1:43 PM
The basis for rent control is not control rent but bankrupt private rental housing providers. I would bring in a rigid system of rent review where you say to the speculators if you are unhappy we will buy you out. Quoted from the left wing radical tenancy advocate groups handout. After the government takes over tenants get large rent increases as the government is not under rent control. In the end tenants pay higher rent along with getting rental units that meet the building and fire codes which can be a complete slum. Does anyone know anything run by government that is run efficiently and a lower cost. Now is the time for rental housing providers to switch all the utilities where tenants pay and control consumption. Like many rental housing providers in the province of Ontario shopping for building materials at Habitat for Humanity restore for plumbing supplies, electrical, appliances is no longer a option as it is necessary to cut costs. Why does the government call it the housing authority that sounds like some sort of a dictatorship. When the rental housing is destroyed tenants have to put up or shut up. --147.194.xxx.xx
Lower the Rent (by JB [OR]) Posted on: Mar 16, 2019 8:27 PM
I just talked to the tenant again this evening. Told them we would not be lowering the rent. Stone silence on the other end. I think she had already banked on it.
Now I'm kind of hoping they'll give notice to leave. Otherwise I may need to issue a 90 Day notice of a rental increase soon so it goes into effect before the turn of the next century. I love Oregon... --24.20.xxx.xxx
Lower the Rent (by Salernitana [CA]) Posted on: Mar 16, 2019 9:20 PM
I am glad that you did what you think was right, and it is good that you bounced your thoughts against this board for input and ideas. I would be curious to see what happens, and please share what does if you can. Best of luck. --67.170.xxx.xxx
Lower the Rent (by Qcjo’h [CT]) Posted on: Mar 16, 2019 10:24 PM
JB,why do they need such largeTVs. Is their hearing or eyesight that bad?............Charlie.................perhaps you’re right!......... --32.214.xxx.xx
Lower the Rent (by Cjo’h [CT]) Posted on: Mar 16, 2019 10:55 PM
M yo b , you think McDonalds are paying that much,I’ll check with them to morrow. Oh oh.Tomorrow is St.Patricks Day , better not, That might be Unlucky You knowThe Leprechaun would definitely check and look at that sideways and no corned beef then!!!!! !!!!!!! !!!!!! Cjo’h was here. I think Happy St Patrick’s To Y’all .Right Deanna...... --32.214.xxx.xx
Lower the Rent (by rentON [PA]) Posted on: Mar 17, 2019 3:06 AM
I wouldn't lower the rent unless it was priced over market. What's going to happen next month when one of their cars needs repaired? --67.165.xx.xx