RENTS?
 

I live in a 57 unit Apartment Building. We have one, two, and three Bedroom units plus a couple of studio apartments. It’s located in a nice middle class suburb of Chicago.

Last September we got new owners who have been doing a lot to fix the place up. The building was not in terrible shape but it is over sixty years old.

My lease is not up until October, but I have recently been hearing from people who’s lease is up. One fellow with a one bedroom, one bath had his rent raised $40-about a four percent increase. Not unreasonable. But a lady. Who lives in a two bedroom, two bath apartment is facing a $250 increase-a 20% raise. Yet another lady, in an identical two bedroom is facing a$150 a month increase.


Can anyone here explain those large discrepancies. They are upgrading the apartments as people move out, but these are all people staying in the same apartment.

Maybe someone here has experience owning or managing an apartment building or complex.

Probably as simple as supply and demand.

I agree with XTB . There is probably more of a demand for the multi room dwellings so they can charge more

You know that never occurred to me, but it does make sense.

New owners are finding market value. When a lease is up, you are going to have to rent it at what they think the market value is.

Normally, (it’s Chicago, who the hell knows) new landlords compare other comparable rents for similar square footage and bedrooms within a ten square mile area. Sometimes more depending on commuters and shopping in the area.

One reason for buying a property like this is that you have identified the fact that a portion of the building is under priced and you can raise the rent without much trouble because your current tenant will not find a similar apt for less money if they consider moving.

In fact you may even encourage them to move so that you can cheaply upgrade and make an even larger increase due to what’s around you. Sharp investors understand the dynamics ongoing in the area where they rent properties

there are big companies now running around buying up as much property as they can just to rent out. they also buy up businesses like oil delivery, landscape, electricians, and plumbers so that they can service their properties. a large hedge fund can easily buy 500 properties in the same area. their plan is to keep the property as long as they are able to depreciate them, and then sell them or swap them with other companies to get their depreciation again.

a regular person can not stay in the game with these big guys because they can't afford to carry a whole company that does all the maintenance for less than what a single owner would have to pay for the same thing. its just another perfect make rich people richer and to screw the middle class legally.

Last fall, my son's two bedroom rent went from 855 to 1175. He's trying to save for a house, but rates have also halted those plans.

So he and my granddaughter are moving in with his mother and I. Drastic measure, but happy to be able to help them.

The discrepancies could be because the base rents were different. If 2 bedroom units have a market value of $1,600/mo and one of the units is being rented for $1,350 and another for $1,500, then a bump to market value for each would seem to be a discrepancy.

Very smart long term play. Save while this market swings to bad/worse etc

If they do it right, this can propel them to a better lifestyle for many years to come. Good for you for helping them.

I’m watching this happen in Houston. Lots of this going on.

I’m trying to find a business that compliments my current business. It’s tough. Currently I’m looking into plastics-injection molding etc.

The price on “To-go” containers and the like have skyrocketed. I would love to be able to produce our own. So far no luck…..the big boys own the market.

Liberals are not only screwing the middle class, there is a lower middle class and a middle class that absorbs the brunt of it. It is policy's run amok that have never worked but liberals love them.
People who can least afford this bullshit pay the highest price by these hidden taxes.

People who like to eat will just have to go on cruse ships that look more attractive than spending locally for vacations, business that you run are being run out of town by everything going up to the point charging more in passing costs on only makes eating at home super logical than going out. Although cruse ships pay big money for food and fuel it is only a fraction of the cost imposed on local business.

My daughter got married last June, her and her husband moved in with us to save for a house in an area where people are overbidding the very few houses that ever hit the market. They just found one and moved in last week. The point is, its almost impossible to try to save 80k for a 20% down payment if you are renting. I know several parents that newly married couples are living with, seems to be the new way

With the cost of houses these days, it's prudent. On of my other sons also did the same thing a few years back. Doing so for 18 to 24 months is a big financial swing for him, which will put him over the top for his down payment goal.