Quote:
Originally Posted by misher
Your confusing want more with wanting market rates. It’s not like you can jack up a market rental 700-1000 and someone else will come. What happens is you have units where the owner never bothered to raise rent or forgot and suddenly the rent is a lot less than market and the tenant is getting a great deal. How do you raise the rent once this situation happens? Under the old system you could at least raise it slowly but now your forced to rennovict. Right now in vancouver rents are way under what the cost of housing is, you should be getting around 6-7% return because you have to pay maintenance management etc and you need to make as more interest than the bank. Instead people are getting 2-3% which is awful. Owners are already suffering at market rates and were saying this is too high you should take a bigger loss. People forget that owners pay 300-500 towards the strata each month plus rental management plus paying for the damage/screwups of the tenant. It adds up so profit margins are low or non existent. Before people would buy rentals because the housing market goes up to repay it but now the markets going down and rent just doesn’t make sense.
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Which is why renting should be left to professional companies and not to some wannabe land baron with a couple crappy condos he's trying to cover the mortgage on. Professionals don't "forget" to raise the rent. Just take a look at the title of this thread, Seattle doesn't have legions of speculators flipping condos who might rent one out if the market is slow.
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