Posted on 08/22/2023 6:18:11 AM PDT by where's_the_Outrage?
In the modern rental market, some apartments and other types of homes for rent have requirements from their owners dictating the level of a tenant's income. Typically, these require tenants to make three times their monthly rent in income to qualify, with some requiring up to four times the rent to ensure tenants will pay each month.
Over the past few years, rental rates have increased dramatically across the U.S., with a 16% increase observed nationally from 2021 to 2022, according to NerdWallet. While that growth has reportedly slowed, rents remain higher than they have historically.
A TikToker questioned the ethics of periodically raising rents without verifying that tenants can still afford it. In a video that has drawn over 111,000 views on the platform, real estate agent Melinda Lumpkin (@melindalumpkin) says landlords do not care if their tenants can afford the rent after they initially qualify for a unit.
"How is it ethical for an apartment to require you to make three times the income in order to qualify to get into an apartment, but then as soon as your lease ends, they increase the rent without verifying any income or anything like that?" she asks in the video. "That further proves what I stated in my pinned video—that these landlords do not care if you can afford the rent or not. They don't care."
The problem is one that may not entirely be solved by moving out, she says, unless a tenant moves to a different area, as rental rates are based on the local rental market.
(Excerpt) Read more at msn.com ...
Yep - the increases in FL (Palm Beach County) are becoming consistent.
For years, everyone’s house was way under-appraised. Now they’re catching up.
Everything is going up so why not rent
What a stupid train of thought? That’s the tenants responsibility. Does your rent go up if you get a raise?
It’s called lock-in. There is a cost involved with moving.
So the obvious outcome would be that tenants would have to have five times income in order for the landlord to let them in so that they can absorb future increases
She’s got a good point though. I’m pro-landlord, but this is an excellent point.
Well, no. The landlords check to see you if theoretically have enough income to afford the apartment not because they care about the tenant but because they they want an assurance that the tenant will be able to pay.
When they raise the rent, they assume the tenant will pay extra to not have to move. The landlord’s option would be to re-validate the tenants and evict those whose incomes are not 3 times the new rents, which seems worse.
This is a stupid liberal hit piece. Grocery stores haven’t checked with me about raising their prices either.
Find a cheaper apartment... move to a cheaper area. Get a second job.
OR ELECT TRUMP.
Biden and his filthy goons and thugs are causing this WITH THEIR STUPID CHOICES. If you don’t like your rent, food costs, gasoline prices blame democrats.
The TikToker prefers to bring his “papers” to every interaction with the landlord?
Makes sense to me honestly. If 3x income is the standard why wouldn’t it be re-evaluated when the contract was renewed? I would just assume that would be normal.
Well, they initially run a credit check to make sure they will actually be paid the rent. And then, once established that a deadbeat won’t be occupying his property, raising the rent in the future depends on only one law, the law of supply demand, not his credit score.
“Pay the rent or out you go.”
— Every landlord everywhere throughout history
First, Last, Security and a Broker fee for a $2,500 rental is $10,000.
And income requirements . . .
Whoever pays that is an idiot.
Most wouldn’t have it anyway.
And if you think $2,500 is a bunch for a rental, you really need to get out more.
OTOH
That’s a 5% down payment on a $200,000 special FHA loan-
Saw this too
“landlords do not care if you can afford the rent or not. They don’t care.””
Correct, that you can “afford” it or not doesn’t matter.
Cuz rich people can stiff folks on bills just like poor people can.
The concern is, will you consistently PAY the rent on time.
A track history of paying on-time for several years will always outweigh a big salary.
...which sounds a lot like a tax on unrealized gains; i.e., money that you don't have. But yet: it's a routine practice.
So, does this guy want the landlords to evict anyone who can’t afford the higher rent? Somehow I doubt it.
“these landlords do not care if you can afford the rent or not”
No, they care if you will pay the rent or not. Whether you can afford the rent is just one indication if you will pay.
“The landlord’s option would be to re-validate the tenants and evict those whose incomes are not 3 times the new rents, which seems worse.”
Well, they wouldn’t have to evict, because the lease is already ending. They can just not offer them a renewal.
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