 Impact of Inflation (by Ray-N-Pa [PA]) May 11, 2022 4:20 PM
 Impact of Inflation (by Sisco [MO]) May 11, 2022 4:27 PM
Impact of Inflation (by Pmh [TX]) May 11, 2022 5:42 PM
Impact of Inflation (by 6x6 [TN]) May 11, 2022 6:21 PM
Impact of Inflation (by MikeA [TX]) May 11, 2022 6:50 PM
Impact of Inflation (by 6x6 [TN]) May 11, 2022 7:36 PM
Impact of Inflation (by Robert J [CA]) May 11, 2022 10:25 PM
Impact of Inflation (by BRAD 20,000 [IN]) May 17, 2022 12:57 AM
Impact of Inflation (by Ray-N-Pa [PA]) Posted on: May 11, 2022 4:20 PM
Message:
So many things are increasing in price so where I wasn't locked into a rate with a set increase - I too have been pushing on my additional cost.
I am starting to hear it though from some of my residents. I have been using it as a motivator for some of my long term residents. Telling them I can lock in with a 9.5% increase today over an 18 month period so they don't have to worry about additional spikes in 2023.
Where I am typically a percent or two under the inflation rate anyway, the way I am seeing this - I would rather get 9.5% over 18 months starting today than 6% in April and 3.5% next year. Where it is true there is a slight compounding effect using the second approach, I am locking in those long termers so they can better mange day to day expenses.
Have you been getting an earful? If so how are you handling it?
--24.101.xxx.xxx |
Impact of Inflation (by Sisco [MO]) Posted on: May 11, 2022 4:27 PM
Message:
I raised 9 existing tenants rent an average of $140 per month. ( 18% - 26%)
Zero push back. I think that the news reports have conditioned tenants to expect big increases.
That being said, it requires a lot more $ to maintain a property than it did 2-3 years ago. --149.76.xxx.xxx |
Impact of Inflation (by Pmh [TX]) Posted on: May 11, 2022 5:42 PM
Message:
for sure take advantage of raising rents now & blame it on p#tin’s +ransitory inflation. I am. --107.77.xxx.xxx |
Impact of Inflation (by 6x6 [TN]) Posted on: May 11, 2022 6:21 PM
Message:
"Where it is true there is a slight compounding effect using the second approach..."
Would you mind explaining that?
I would have thought that the first approach would net you more money, but it sounds as if that may not be the case?
--73.120.xx.xxx |
Impact of Inflation (by MikeA [TX]) Posted on: May 11, 2022 6:50 PM
Message:
6,
Assume rent is $1000
First increase is 6% so new rent is $1060
Second increase is 3.5% so new rent is $1097.1
If you did it in one increase it would be $1095
However, this doesn't take into account what Ray is suggestion that you get $1095 starting the first year. Doing it in 2 pieces you would get $1060 the first year and $1097 the second and subsequent years. So you loose $35/month X 12 months to end up getting an extra $2/month for life.
If your tenant stays for years you will end up loosing money doing it in one lump. You also risk not being able to raise rent again if inflation really gets out of control through 2023. I don't think those risks are very high though and if it helps keep good tenants it might be worth it. On the reverse side, you are getting 3.5% increase that may never materialize if the economy tanks in 2023 as some are suggesting. --209.205.xxx.xx |
Impact of Inflation (by 6x6 [TN]) Posted on: May 11, 2022 7:36 PM
Message:
Thank you MikeA, now I understand. Thank you for the example. --73.120.xx.xxx |
Impact of Inflation (by Robert J [CA]) Posted on: May 11, 2022 10:25 PM
Message:
As a contractor my material costs have risen because of supply and demand of the Pandemic. Now with inflation, things are going to hurt property owners. Factor in the cost of transportation, higher oil prices, and investors wont' be able to afford preventive maintenance. They would rathe let the property rot and crumble down into pieces. --47.155.xx.xxx |
Impact of Inflation (by BRAD 20,000 [IN]) Posted on: May 17, 2022 12:57 AM
Message:
RayRay,
I am blown away by the rents I am getting on new leases. Some are DOUBLE what I charged a few years ago.
The housing shortage in my area keeps them from complaining - they grab it before someone else does.
I am also blown away with how much folks can afford. Much more than a few years ago.
Not a peep of complaint from our rent increase letters.
Beware: locally property taxes jumped up. Those do not include the increase in values this year.
BRAD --73.103.xx.xx |
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