Quote:
Originally Posted by MillerTime GFG
Not really a myth, especially for those that have a variable rate mortgage on a rental, which is quite common given their flexibility. Mortgage payments will have now gone up hundreds of dollars, so many landlords will be cashflow negative.
There's the added issue now for landlords coming up for mortgage renewal on their primary or rental...given they are cashflow negative, this needs to be entered as a liability on their application, which makes it harder to qualify. In many cases, landlords need to raise rents.
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The primary driver of rents is always going to be how much tenants can pay. For sure, there are some landlords who consider their own costs and take it easy on tenants, but this scenario is likely only common in situations where landlords want to keep a tenant they like. When putting a new rental on the market, the landlords will almost always price the unit at or very near to the maximum rent the market will bear.
On the flipside, tenants don't really care how much the landlord is paying. They will pay what the market dictates, up to their own desire/willingness to pay.