Rent Bank

Social, economic and environmental issues in our ever-changing world.
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

ckil wrote:How will the rentals be removed from the market? You may sell to another landlord. A mass exodus would push prices down allowing for renters to afford a place. Anyways, I am sure the market can handle your 3 units being removed. The capital gains is done in this cycle - perhaps it is time you sold. It sounds as if you are getting a little disgruntled being a landlord.
In most cases, they do not see rental market again. For that to happen you would need to make it attractive for landlords to acquire and operate them. As Mark explained very well, that's not what is happening nowadays. The truth is, many of existing landlords are happy if they break even at year's end, let alone make profit. And governments only make it worse. You are not going to have a healthy supply in such conditions.
Another misconception is one that an exodus of landlords will depress home prices, so that renters would be able to purchase them. For that to happen, the prices need to go down at least 50-70%. No government would allow this to happen, because there would be nothing left to govern.
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Re: Rent Bank

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Mark1111 wrote:Considering the fact that many socialist governments dictate who can get what apartment based on their party affiliation, ...
Reminds of a scene from Dr. Zhivago movie, when Yuri (Omar Sharif) returns to his house in Moscow and finds a bunch of strangers living in there, one of them telling him the new government (Bolsheviks) determined that the house was too big for him alone, and showing him "his room". Great movie!
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Re: Rent Bank

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Vacancyrate wrote:Rent costs are now exceeding what renters can pay with their wages.
Not all of them. But if you get a diploma in community organizing, or lesbian dancing, then you can't expect your wage to catch up with it. People have to work on that themselves. There is reality out there ...

In fact, it is not wages that determine rents. The only thing that rents are directly tied into is the cost of new ownership, and that being (on monthly basis) ...

Mortgage payments + insurance + taxes + strata and other fees (where applicable) = COST OF NEW OWNERSHIP.

Now, drop this by about 10-15%, and this is your MONTHLY RENT. Please note that this calculation has nothing to do with landlord's profit, nor renter's wages. It is just an incentive, i.e. to make it cheaper to rent than own. It is anyone's CHOICE, and no government could ever legislate this.

Rent bank, however might help, for some ..
Last edited by BC Landlord on Jan 3rd, 2021, 12:32 pm, edited 3 times in total.
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Rejigger
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Re: Rent Bank

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W105 wrote:I can see Jlives point about charging only what she needs to up keep her rentals..why ?? because chances are she will have very long term Tenants who will treat her rentals like their own home...and that's priceless...just ask a Landlord that has a huge amount of turnover with their Tenants and has to constantly weed out the bad ones..it ain't fun and it usually costs them more in the long run..
Indeed, let's ask a landlord about the cost of turnover. I bet they would say that given how quickly rents can change, turnover isn't necessarily a bad thing. If the market goes down, existing tenants will request a reduction and the landlord may agree, so long as the reduced price is in-line with what they would otherwise get by listing the place on the open market. Otherwise, if the market goes up and the rental is in a province in which the government has tied the landlord's hands on rent increases, it can absolutely be worth it to have a change of tenancy. Building on your post, if the tenant says 'so long', the landlord can post an advertisement for $50/$75/$100 more per month, do their diligence in screening a new tenant, and hope for the best from that new tenant (which is all one can do in any circumstances since even existing tenants can turn into difficult tenants*). For the amount of effort on the landlord's part, the payoff can be quite impressive.

Also of note, because of the restrictions to rent increases thanks to the BC government, along with the difficulties surrounding eviction of bad tenants, a landlord should NEVER agree to reduce the rent. We can all thank the government for keeping rents high!

It isn't like hiring and training a new employee, which can at times be worth it to increase their wage rather than go through the hiring/training just to end up with someone who garners the same, or even garners worse, results than the old employee provided.

*Everything's great until it isn't. For eg. the tenant neglects something in the plumbing and claims they had "no idea" that it was going on for any length of time then unrealistically expects a quick repair ("Oh, the drywall, baseboard/trim, floor replacement, and the mould remediation is going to take longer than a day?") and requests a reduction in rent while the repairs are going on ... again, due to their own negligence. And insurance is a drag to deal with, and can be costly in the long run. So, yeah even "good" tenants can become difficult.
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Rejigger
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Re: Rent Bank

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Vacancyrate wrote:
Rejigger wrote: All of a sudden socialism isn’t fun and games anymore.
Says the landlord begging for a welfare cheque!!!

Classic.
I've NEVER been a welfare case, and at this point in my life I can say with confidence that I never will be. You have me confused for someone else. I'm the one who has repeatedly stated, "I don't know why anyone would want to be a landlord in this province." Too many British Columbians think landlords owe renters something for nothing.

Those same renters who have their hands out aren't posting about how they should get a discount on groceries, utilities, toiletries, clothing, vehicle fuel, dog/cat food (but a financially responsible person wouldn't own a pet if they can't even afford to pay their own bills), cigs, liquor, slots (but a financially responsible person wouldn't indulge in such vices), etc.
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Rejigger
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Re: Rent Bank

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Vacancyrate wrote:Eliminate all landlords. Leeches on society.


Eliminate all landlords? Even the government-owned rentals should be sold off? First we'd have to eliminate the NEED for landlords. That's the equivalent of saying all tenants must go buy a house. But not everyone WANTS to own a house*. Isn't that an infringement on people's rights; to take away choice and to force them into home ownership?

*some ppl think the RE market is a house of cards and they don't want to risk ownership, for eg.
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Rejigger
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Re: Rent Bank

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Queen K wrote:
BC Landlord wrote: By what magic?
By some landlords actually recognizing that they didn't buy their places at $500K and up.
This is, in essence, the same as saying that an empty-nester should make less money for doing the same work as a young person who's raising a family. The empty-nester should have their home paid off and is no longer required to pay for their offspring in any way (it's a choice to spend money on them at this point). Is it reasonable to expect the older generation to earn less money since their expenses should be lower than others*?

*Regardless of what the older generations actual expenses are - just like regardless of what the landlord's actual expenses are, in this example.
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

Rejigger wrote: This is, in essence, the same as saying that an empty-nester should make less money for doing the same work as a young person who's raising a family. The empty-nester should have their home paid off and is no longer required to pay for their offspring in any way (it's a choice to spend money on them at this point). Is it reasonable to expect the older generation to earn less money since their expenses should be lower than others*?

*Regardless of what the older generations actual expenses are - just like regardless of what the landlord's actual expenses are, in this example.
Just like when two pee wee hockey teams are unevenly matched and by the first period the score is 45-0 and here you are encouraging the game to go on and cheering the wining team on and laughing at the opposing team and heckling them.

Just because you bought your house in 1970 for a few thousand dollars at 3x your income and have it paid off doesn't mean you shouldn't charge WALLET RAPING MARKET rental rates.

You can charge high rents, but you don't have to.

Keep playing kids! Run that score up to 150-0 by the 3rd period!
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Re: Rent Bank

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Rejigger wrote:This is EXACTLY what the government wants: to make it unappealing for landlords to operate in this province, with the end result being a reduction in housing prices and more people owning individual houses (fewer people owning multiple houses).
I think what they are pushing is high-density (i.e. apartment) properties. Just look at what's happening in Kelowna, along Harvey and elsewhere. I'll never wade into that. People still need to raise kids, and let them safely play outdoor. How do you do that from a friggin 16th floor? I grew up in a socialistic apartment building. It sucked.
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Re: Rent Bank

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Vacancyrate wrote:Just because you bought your house in 1970 for a few thousand dollars at 3x your income and have it paid off doesn't mean you shouldn't charge WALLET RAPING MARKET rental rates.
How do you know when and for how much Rejigger bought his house, and what his salary was then? Are you his accountant?
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Re: Rent Bank

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BC Landlord wrote: How do you know when and for how much Rejigger bought his house, and what his salary was then? Are you his accountant?
Stats Canada is a great thing.

For 100+ years the average Canadian house price was never more than 3-4 times the average Canadian wage.

That number has grown to 6-11 times the average wage.
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Rejigger
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Re: Rent Bank

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Vacancyrate wrote:
Rejigger wrote: This is, in essence, the same as saying that an empty-nester should make less money for doing the same work as a young person who's raising a family. The empty-nester should have their home paid off and is no longer required to pay for their offspring in any way (it's a choice to spend money on them at this point). Is it reasonable to expect the older generation to earn less money since their expenses should be lower than others*?

*Regardless of what the older generations actual expenses are - just like regardless of what the landlord's actual expenses are, in this example.
Just like when two pee wee hockey teams are unevenly matched and by the first period the score is 45-0 and here you are encouraging the game to go on and cheering the wining team on and laughing at the opposing team and heckling them.
At first I was a bit confused by this analogy. But then as I was trying to make sense of it I was struck - saddened even - by the idea that anyone would think others are cheering on the winning team (I thought everyone loved an underdog?) and "laughing" and "heckling" the losing team. If you wouldn't do this, why think others would do it? Not every tenant has an inferiority complex, or hates their landlord for no other reason than their lot in life.
Just because you bought your house in 1970 for a few thousand dollars at 3x your income and have it paid off doesn't mean you shouldn't charge WALLET RAPING MARKET rental rates. You can charge high rents, but you don't have to.
Should a house be sold for less than market if the owner has lived debt-free for the past 20 years (even though they need the money to pay for their own personal expenses going forward). Should a professional partner or small business owner sell to a new partner or business owner at a price that is below market (sell their plumbing business that they've worked many long hours to grow over many years, for eg.)? Should a professional partner or business owner start charging less for their service once they've paid off the debt they incurred to buy-in to or establish a practice/business (even though they, too, need the money to pay for their own personal expenses going forward)? If the answer is no, then that should also be true for landlords. Fair market value is fair market value. Why should the business of rental properties be singled-out and treated differently?
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Re: Rent Bank

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Vacancyrate wrote:
BC Landlord wrote: How do you know when and for how much Rejigger bought his house, and what his salary was then? Are you his accountant?
Stats Canada is a great thing.

For 100+ years the average Canadian house price was never more than 3-4 times the average Canadian wage.

That number has grown to 6-11 times the average wage.
It is great indeed, but it all depends how you use it, or what you want to prove. I can also also say, one person is obese, and the other one is anorexic. On average they are fit, right? That's stats, but an improper use of it, to save you an argument.

To get a real picture, you need to hear the other side of the story, too. I haven't lived that long, but I would assume a lot of things have changed (for better or worse) in the last 100 years. But what I CAN tell you, is that merely 25 years ago, a small landlord with a single unit could nicely supplement his retirement, without having to use his savings (rrsp). Two units would make you a modest but comfortable living, alone. Nowadays, you need at least five. So, what we have here is both landlords' and renters' standard of living deteriorating in the last couple of decades. Having that in mind, I would ask you, ... What kind of a conclusion would you draw from that? Who is responsible? Let me give you a hint, .. it’s neither landlords, nor renters.
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Re: Rent Bank

Post by ckil »

Interest rates!
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Re: Rent Bank

Post by BC Landlord »

ckil wrote:Interest rates!
Interesting theory ... But wouldn't that benefit buyers, whether being landlords or first time buyers? In fact, it benefits the later much more. Do you realize how much harder is it to purchase a rental property? I have to put a 20% down payment (as opposed to 5% for first-timers). Bank wouldn't give you a loan otherwise. On a $500k, that's a $100,000 cold hard cash. Not too many people have that kind of disposable money.

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