nathanaz t1_ja8n0ep wrote
Genuine curiosity here: so many people seem to think landlords are evil and predatory because they charge more in rent than they pay for mortgage/taxes/upkeep etc. Many people also either don’t want or can’t afford to buy, between down payments, desire not to be locked in to one place , whatever.
So, if you don’t want to or can’t afford to save for a down payment and buy, who is it that is supposed to be renting you a place to live, if landlording is evil?
Not trying to vilify or troll, I legit want to know who you think should be risking their capital and renting people houses?
Unusual-Okra9251 t1_ja8rl64 wrote
It's not like the house would languish on the market unless a landlord came along to buy it and rent it out. Inventory is super low, and sellers are going to naturally take the easiest buyer with the most money, so you get cash buyers unaffected by interest rates. Meanwhile, families who saved for years are losing buying power because of rising interest, thus having to save longer and missing out on a home.
Landlords are not heroes or victims.
nathanaz t1_ja8w2fr wrote
I 100% agree that there are people out there getting edged out of the market to buy a house, and that sucks. I’m old enough to have seen a few cycles where the real estate market ebbs and flows, and right now is one of those shitty times for buyers. Has to be completely frustrating.
It seems like there’s a significant and important role for landlords though. Many people (young people, people who move around for jobs, growing families, older folks etc) want to rent and not buy, and I was just curious what the vitriolic ‘landlords are evil’ people thought in terms of that piece of the market should be handled.
Unusual-Okra9251 t1_ja8xc66 wrote
I have no issue with apartments that are meant to be apartments. I understand that there will always be a segment of the population that benefits more from renting. The issue I have is when so called average people think that they can hoard property and use it for "passive" income. Those landlords do nothing of benefit for anyone.
nathanaz t1_ja910sj wrote
You’re saying only places built specifically as apartments should be rented?
In a scenario where average people can’t buy houses and rent it out for passive income/ equity, who owns the homes that get rented out? Assuming not everyone who wants to rent wants to rent an apartment - some people (like me before I bought) want to rent a house.
Unusual-Okra9251 t1_ja91spp wrote
At this point it's obvious that whatever argument I make, you're going to advocate for landlords. We can just agree to disagree. I'm tired of seeing communities turned into all rental neighborhoods by individual landlords and investment groups. I hate that airbnb and other short term rental companies have prevented families from putting down roots in towns that are quickly being priced out of reach. I don't know how to solve the issue without massive government oversight or a guillotine, but I know which method is more satisfying.
I'm just lucky that I was able to buy last year before rates shot way up, in a town I've long loved. There are a lot of small time landlords in my town, renting homes to people for considerably more than what my mortgage costs. It's not great.
nathanaz t1_ja92zg4 wrote
I just think landlords have a role in the overall market, as not everyone wants to rent a small apt or buy. It’s not really ‘advocating’ as much as it is just accepting the reality of the housing market and that people have preferences. Unethical landlords that try to screw people out of every dime possible are not what I’m talking about - fuck those people. But renting, in general, doesn’t need to be evil. Maybe limits on rent increases, like they do in some cities, would be in order throughout the country.
As far as airbnb and the like, I feel like short term rentals in residential areas are destroying neighborhoods by creating blocks of houses with transient occupants. I don’t have all the answers, in terms of what to do about it, but those types of arrangements should be addressed, IMO.
brantlyr t1_ja8t72g wrote
From what I understand, part of the issue is the current rental market is WHY people can’t afford to buy a place, for several reasons.
First is the rush to snatch up these properties by big investment groups or even individuals looking to add rental properties to their portfolio inflates the cost of homes due to the crazy demand. People dropping tens of thousands + on top of asking price in cash for a home is not normal and your average joe can’t compete. This goes unchecked so large groups can acquire enough properties in an area that they can inflate rent prices how they see fit to an extent.
Then because of the high prices for rent which is honestly insane in parts of NJ, people don’t have extra money at the end of the month to put away and save for anything, let alone the down payment on a home. This can have ripple effects in keeping a person tied down to a job because of the inability to move, or forcing people to live so far from their place of work that they have a ridiculous commute everyday which also has its financial consequences.
Obviously someone has to rent property, but the “business” of making a profit on keeping a roof over someone’s head is out of control
brantlyr t1_ja8tt7i wrote
FWIW I don’t think OP is being malicious or evil. Like I said someone has to rent properties and an individual owning a single extra property as an investment is likely the least exploitative way to go about it. I think bigger companies buying up multiple properties is the main problem!
nathanaz t1_ja8ucby wrote
I agree that big companies buying up tone of properties is a big issue.
There seem to be a lot of people who think being a landlord of any kind if exploitive, and I’m just curious how they feel the rental market should work if they have that sentiment.
Linenoise77 t1_ja8qqwv wrote
Its reddit so its just the loudest voices.
As i said below, if someone pays their rent on time every month, for 12 months, i make EXACTLY 1 month in rent "profit" after paying our note, taxes, insurance, accountant, and putting aside money for capital repairs. My place sits vacant for 2 months, i'm out 2 years of that profit. One tenant trashes the place, and i'm out a multiple of that, and yeah, have fun trying to collect against a person like that.
The real money is in the equity, but even then, when you consider the liability and expense and time sink a small time landlord puts in, unless they are trying to time the market and play the long game, they are better off going to AC and playing blackjack. If they are playing the long game, there are honestly plenty of things i can expect to see the same return on by just setting and forgetting it over 20-30 years.
Real estate SHOULD be just a way of diversifying your investments. Its possible to be an honest and ethical landlord, and i like to think of myself as one, but more and more i'm finding most tenants aren't willing to return the favor. You don't think i know you have 2 cats when the lease said no and you couldn't have even bothered to ask me? That the person you are dating basically lives there when the lease says no? The oil stain on the drivway came from you trying to shadetree oil change your car?
nathanaz t1_ja8v5l3 wrote
Yeah, I hear you. I don’t lease property to anyone, but I think I have a decent understanding of the business model, and I don’t think most of the people who express the ‘landlords are evil’ sentiment understand that landlords are risking their personal capital (in the case of non-corporate owners) so there has to be an incentive (profit) or nobody would ever do it.
I definitely believe that there are tons of unethical landlords and tenants, too. We thought about buying a duplex or triple as an investment but I just didn’t want to deal with all the headaches, such as the things you mention above.
Viewing a single comment thread. View all comments