Nenshi stirs up a hornets nest with his landlord gouging comments

[combustiblefuel]

Originally Posted by Swarly

is the allowable rate they are allowed to increase only affect current tenants or is that the max they can charge a new tenant also?

Landlords can ask whatever they want at first. After you sign the initial agreement the tenant act then applies.

[combustiblefuel]

Originally Posted by Swarly

wouldn't the solution around rent control then be for the landlords in BC to always have yearly leases then?

It is better to rent a place to someone over and over if they have proven to be reliable. Then having to risk the reliability year after year.

Yes, in a way too tho. There is an option on the rental agreement that after x amount of months the tenant has to move out or it defaults to a month to month agreement.

[normtwofinger]

Originally Posted by calgarywinning

Maybe these people sacrificed, worked a little harder topay the rent. Maybe they didn't indulge in a caffe latte and a fast food world. They lived lean so they could make this month's rent. Maybe they gave up things that you take for granted, so they could just scrape by.

Fyp.

[WilsonFourTwo]

Originally Posted by The Ditch

I feel really bad for these people with extra properties to rent out, won't someone think of and stand up for those with multiple properties and extra space above and beyond what they need? What has this world come to.

My favorite part about this whole arguement is:


- If I up the rent to what the market will yield (and thereby make a grand or so a year), I'm the scum of the earth.


- If the market tanks and I lose my shirt on the deal, I'm a sh***y businessman who got what he deserved.

So I put a quarter million on the line, put in the monthly effort to manage/maintain the unit, and after all the expenses and taxes are paid, I break even on the year.

Of course I get to enjoy the skyrocketing appreciation of the property....oh wait, gotta pay tax on that as well.

This isn't a get rich quick scheme, nor is it a public service.

[PsYcNeT]

Originally Posted by calgarywinning

Maybe these people sacrificed, worked a little harder to get ahead. Maybe they didn't indulge in a caffe latte and a fast food world. They lived lean so they could get ahead. Maybe they gave up things that you take for granted, so they could have a better future.

This used to be the premise of western civilization and now it is disdain for people that try to get ahead.

Middle-class privilege spotted.

[GGG]

I think gouging only applies if you take advantage of a people due to an event where the community should becoming together.

If day 1 after of the flood you gave notice to jack rent by 50% because you know your tenant has no other options that is gouging. You are taking advantage of a situation which you should be helping as part of the community. You are also taking advantage of something not essential to your business plan.

However over a year later setting rent to the market rate is not gouging it is following your business plan of rent at the maximum value you can while maintaining high quality tenants and a low vacancy rate. I don't see how you call it gouging.

I also suspect many of these so called gouging cases are when properties change hand and the rent increases. The original owners had less debt and were more concerned with tenant stability than maximizing cash flow. The new guys with much higher costs have to maximize cash flow to make the investment worthwhile. I know of three cases amongst friends on the tenant side where 30% plus increases were caused by sales of properties. They also new that they were stealing the property from the land lord previously.

[Cleveland Steam Whistle]

Originally Posted by SebC

Long-term supply is affected by cost.

How are you applying that in this situation? Long term supply of what is impacted by the cost of what in this situation?

[SebC]

Originally Posted by Cleveland Steam Whistle

How are you applying that in this situation? Long term supply of what is impacted by the cost of what in this situation?

Long term supply of rentals is impacted by the suppliers' costs (i.e. stuff like housing price, taxes, interest rates). I was responding to a post that basically said "cost is irrelevent, it's supply and demand" and pointing out that that's only true in the short run, as in the long run costs is part of supply.

[Dion]

Originally Posted by GGG

I think gouging only applies if you take advantage of a people due to an event where the community should becoming together.

If day 1 after of the flood you gave notice to jack rent by 50% because you know your tenant has no other options that is gouging. You are taking advantage of a situation which you should be helping as part of the community. You are also taking advantage of something not essential to your business plan.

However over a year later setting rent to the market rate is not gouging it is following your business plan of rent at the maximum value you can while maintaining high quality tenants and a low vacancy rate. I don't see how you call it gouging.

I also suspect many of these so called gouging cases are when properties change hand and the rent increases. The original owners had less debt and were more concerned with tenant stability than maximizing cash flow. The new guys with much higher costs have to maximize cash flow to make the investment worthwhile. I know of three cases amongst friends on the tenant side where 30% plus increases were caused by sales of properties. They also new that they were stealing the property from the land lord previously.

That happened alot here in High River. It didn't matter to landlords that many rental properties were damamged during the flood. Owners of rentals that escaped unscathed saw dollar signs and an opportunity to take advanatage of flood victims by raising rents by 30 to 40% I had a landlord say exactly the same thing to my face and made no apologies for it.

[GGG]

Originally Posted by Dion

That happened alot here in High River. It didn't matter to landlords that many rental properties were damamged during the flood. Owners of rentals that escaped unscathed saw dollar signs and an opportunity to take advanatage of flood victims by raising rents by 30 to 40% I had a landlord say exactly the same thing to my face and made no apologies for it.

that's definately gouging and should be no different then jacking up the price on water during events like this.

But now a 18 months later this is the market driving rents and not gouging.

[RW99]

Yeah it is not often I disagree with Nenshi, but for the most part there is no gouging. As a renter I am fine with any landord trying to make money. Its the market that sucks. This city has grown a lot and we keep growing out. But how many new rental apartment buildings have there been? Anyone have a stat about what the income level is for people moving into the province? Theres a lot of renters looking for work when they move here.

[Calgary14]

I'd be curious to see the stats on what percentage of landlords are considered to be "gouging" their tenants and what percentage charges fair market value. Theres always a few bad apples in every bunch

[Dion]

Originally Posted by GGG

that's definately gouging and should be no different then jacking up the price on water during events like this.

But now a 18 months later this is the market driving rents and not gouging.

Agreed. Rental properties are beginning to appear and the increased supply will help the market find a happy medium.

[dirk diggler]

he talks about gouging, maybe look in the mirror and see how much the city gouges calgarians to park downtown on the street... he should be quiet.

[Fighting Banana Slug]

Originally Posted by PsYcNeT

Middle-class privilege spotted.

Pseudo-intellectual arrogance spotted?

[mustache ride]

And it begins. My tenants just told me i am gouging them and tried to negotiate a lower rent. They have been there for 8 months and i haven't raised it on them once. They told me they could find a nicer place for way cheaper and then backtracked really fast haha

[The Ditch]

Originally Posted by mustache ride

And it begins. My tenants just told me i am gouging them and tried to negotiate a lower rent. They have been there for 8 months and i haven't raised it on them once. They told me they could find a nicer place for way cheaper and then backtracked really fast haha

haha oh man these people could be living on the streets what fools

[cam_wmh]

Originally Posted by mustache ride

And it begins. My tenants just told me i am gouging them and tried to negotiate a lower rent. They have been there for 8 months and i haven't raised it on them once. They told me they could find a nicer place for way cheaper and then backtracked really fast haha

Before I agree, care to share the terms of the lease?

[rohara66]

Originally Posted by cam_wmh

Before I agree, care to share the terms of the lease?

My guess is a 1 year lease with buyout penalties for leaving early.... which they most likely signed and agreed to.

[Knut]

Originally Posted by The Ditch

haha oh man these people could be living on the streets what fools

No.. But i am sure they could find a place for cheaper that is maybe a littler further out or not quite as nice.

What gives the tenant the right to try and demand a cheaper rent part way through their lease ? If they do not want to pay the rent they can leave after the lease is up.