Quote:
Originally Posted by Mr.HappySilp
Is really hard to raise rent when someone have live there for 20+ years.
Let's just say 20 years ago rent is 700 and every year you raise the rent by 4% by the end of 20 years rent is only at $1,533.79 (roughly) I am sure if a new person move in their rent would be at least 1800 to 1900. And sometimes you can't even increase the rent by 4% more likely 3% or less. I know a friend who is been renting her place for at least 10 years. Her rent is around $1400 per month near DT. and that's with max rent increase every month. If someone were to rent her unit now their would be over 2000. Is the owners who needs to pay for the strata fees. if they don't feel they are getting their money worth they might vote down a lot of repairs till something actually breaks.
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I don’t think your getting it. If a building owner has tenants who all have “cheap” rent, that means the building has been consistently occupied for the last 20-40 years. The building is paid off and the entire “cheap” rent goes to taxes and maintenance. Yes it’s possible the owner could bring in more money right now, but Jesus Christ.... the poor management company can’t fix a building because they don’t make enough money? Give me a break. I’ll take good long term tenants for less money any day of the week. They have been able to increase their rent ~2% a year. Their initial investment was super low (as per the rent) and now they are living large with a chunk of property that has exponentially increased in value.
If your friend is losing money, she probably should have thought a little harder about her initial investment. If she’s jealous because others are making more rent each month? It’s all part of the game. Boohoo.