Biden housing plan seeks to curb rent increases by penalizing landlords

[binsfeldcyhawk2]

I actually support this.

He wants to limit landlords to a 5% increase year over year. Seems reasonable to me.

Anyway, when I moved to Florida in 2017 rent prices were already going up. Got a 2 bedroom 1200 sq ft apartment for $1850 a month. Bought a house in 2022 and they rented out my apartment for $3000.

Pretty crazy.

Apartment was in Destin FWIW.

Biden housing plan seeks to curb rent increases by penalizing landlords

President to unveil rent control plan for larger landlords that would restrict increases to 5%, or risk losing tax breaks

www.theguardian.com

 

[Finance85]

I actually support this.

He wants to limit landlords to a 5% increase year over year. Seems reasonable to me.

Anyway, when I moved to Florida in 2017 rent prices were already going up. Got a 2 bedroom 1200 sq ft apartment for $1850 a month. Bought a house in 2022 and they rented out my apartment for $3000.

Pretty crazy.

Apartment was in Destin FWIW.

Biden housing plan seeks to curb rent increases by penalizing landlords

President to unveil rent control plan for larger landlords that would restrict increases to 5%, or risk losing tax breaks

www.theguardian.com

So what happens if the landlord needs to make a major repair such as a roof or HVAC system? Let's say the house cost $300,000 and a new roof will cost $15,000. That's a 5% additional cost to the landlord. Let's say that property insurance goes up 25% in 1 year, which is actually a lot less than what's happening right now in FL. I'd say property insurance on a $300,000 house is probably around $6000 right now if within 30 miles of the coast. Raise that 25% and we add another $1,500.

Allowing only a 5% increase would take a few years to recover those costs, eating away at any profit. That doesn't even factor in property taxes, which don't have the homestead cap. This leads to less rental properties, and existing properties will simply change hands, driving prices up even more because the basis for the new owners will reset.

I'm not picking on you Bin, but this has already been tried in places like NYC. The underlying problem is inflation, and underlying inflation is government deficit spending and energy policies. Virtually everything produced has a cost element tied to oil and gas. Trying to treat the symptoms without fixing the underlying problems will always fail. Inflation is cumulative.

 

[binsfeldcyhawk2]

So what happens if the landlord needs to make a major repair such as a roof or HVAC system? Let's say the house cost $300,000 and a new roof will cost $15,000. That's a 5% additional cost to the landlord. Let's say that property insurance goes up 25% in 1 year, which is actually a lot less than what's happening right now in FL. I'd say property insurance on a $300,000 house is probably around $6000 right now if within 30 miles of the coast. Raise that 25% and we add another $1,500.

Allowing only a 5% increase would take a few years to recover those costs, eating away at any profit. That doesn't even factor in property taxes, which don't have the homestead cap. This leads to less rental properties, and existing properties will simply change hands, driving prices up even more because the basis for the new owners will reset.

I'm not picking on you Bin, but this has already been tried in places like NYC. The underlying problem is inflation, and underlying inflation is government deficit spending and energy policies. Virtually everything produced has a cost element tied to oil and gas. Trying to treat the symptoms without fixing the underlying problems will always fail. Inflation is cumulative.

Legit points.

In my situation none of that was applicable to my apartment complex.

 

[Finance85]

Legit points.

In my situation none of that was applicable to my apartment complex.

I'll take your word for it, but I'd bet most apartment complexes saw their insurance go up 50%, and their property taxes go up quite a bit. Since people get locked in to an annual lease amount, there are timing issues and people renewing a lease after costs go up will feel a bigger bite.

 

[sober_teacher]

So what happens if the landlord needs to make a major repair such as a roof or HVAC system? Let's say the house cost $300,000 and a new roof will cost $15,000. That's a 5% additional cost to the landlord. Let's say that property insurance goes up 25% in 1 year, which is actually a lot less than what's happening right now in FL. I'd say property insurance on a $300,000 house is probably around $6000 right now if within 30 miles of the coast. Raise that 25% and we add another $1,500.

Allowing only a 5% increase would take a few years to recover those costs, eating away at any profit. That doesn't even factor in property taxes, which don't have the homestead cap. This leads to less rental properties, and existing properties will simply change hands, driving prices up even more because the basis for the new owners will reset.

I'm not picking on you Bin, but this has already been tried in places like NYC. The underlying problem is inflation, and underlying inflation is government deficit spending and energy policies. Virtually everything produced has a cost element tied to oil and gas. Trying to treat the symptoms without fixing the underlying problems will always fail. Inflation is cumulative.

I’d be okay with allowing exceptions for stuff like repairs, replacing major equipment and such…or perhaps specifically tying rent increases to inflation if all things are equal.

I also think it’s reasonable to prevent price gouging by rental companies, or ones that engage in unfair business practices.

 

[Here_4_a_Day]

I actually support this.

He wants to limit landlords to a 5% increase year over year. Seems reasonable to me.

Anyway, when I moved to Florida in 2017 rent prices were already going up. Got a 2 bedroom 1200 sq ft apartment for $1850 a month. Bought a house in 2022 and they rented out my apartment for $3000.

Pretty crazy.

Apartment was in Destin FWIW.

Biden housing plan seeks to curb rent increases by penalizing landlords

President to unveil rent control plan for larger landlords that would restrict increases to 5%, or risk losing tax breaks

www.theguardian.com

This is straight up marxism....end of story!

 

[HawkeyeShawn]

I actually support this.

He wants to limit landlords to a 5% increase year over year. Seems reasonable to me.

Anyway, when I moved to Florida in 2017 rent prices were already going up. Got a 2 bedroom 1200 sq ft apartment for $1850 a month. Bought a house in 2022 and they rented out my apartment for $3000.

Pretty crazy.

Apartment was in Destin FWIW.

Biden housing plan seeks to curb rent increases by penalizing landlords

President to unveil rent control plan for larger landlords that would restrict increases to 5%, or risk losing tax breaks

www.theguardian.com

Is Biden or the govt now going to be in charge of capping the owner’s expense increases as well?

 

[binsfeldcyhawk2]

Is Biden or the govt now going to be in charge of capping the owner’s expense increases as well?

legit gripe.

I just think rents are out of control. More about a shortage/demand than landlord costs IMO.

 

[goldmom]

The example of a $300k house/$6K insurance less than 30 miles from the coast is kind of stretching it. Maybe further south it’s different!

My house (built in 1976 so almost 50 years old)
Is 15 miles inland, nearing $400K value per Zillow - is costing me about $2800 this year. I do have a high deductible and I do bundle it with my car so maybe that’s a factor. Although I’m now paying $230 a month for auto with a low annual mileage perfect driving record- they get you one way or another. 😡

Destin is somewhat unique because it’s such a
popular vacation destination and short term rentals have distorted the market somewhat.

 

[goldmom]

legit gripe.

I just think rents are out of control. More about a shortage/demand than landlord costs IMO.

Agree. They can’t build houses fast enough.

 

[KFsdisciple]

Agree. They can’t build houses fast enough.

A lot of that is because of our governor. Florida has always been a destination state, but he's made it much more so. The beaches aren't new, the theme parks aren't new, the weather isn't new...

 

[goldmom]

A lot of that is because of our governor. Florida has always been a destination state, but he's made it much more so.

I know. But growing up here and being of a certain age I have seen it all my life.,,
“Come on down!”
No - don’t. We are FULL

 

[KFsdisciple]

I'll credit the Biden administration for proffering this idea. I haven't read through the proposal, but if the rent increase was limited to lease renewals I can see that making sense, or allowing for longer lease terms that would let a tenant lock in their current rates for 2 or 3 years instead of 12 months.

 

[millah_22]

A lot of that is because of our governor. Florida has always been a destination state, but he's made it much more so. The beaches aren't new, the theme parks aren't new, the weather isn't new...

Also zoning and municipalities. Can be local issues as well. Corvallis had pretty rough zoning municipalities. They couldn't extend outward, and they couldn't extend upward. Eventually they were tearing down old (but fine) houses to build new houses.

 

[Slappy Pappy]

Only for corporate owners of more than 50 units. That accounts for 50% of all rental properties.

Seems like landlords of more than 50 units should be good enough with money to have funds available to cover any repairs without having to go off and make huge rent increases.

 

[Slappy Pappy]

This is straight up marxism....end of story!

No, that's not how it works.

This only requires large, corporate landlords to cap rent increases IF they want to continue to receive big federal tax breaks.

Business tax reductions, of course, have always ostensibly been given in return for acts "in the public good" of some kind, so this really isn't anything crazy or unreasonable.

 

[Here_4_a_Day]

No, that's not how it works.

This only requires large, corporate landlords to cap rent increases IF they want to continue to receive big federal tax breaks.

Business tax reductions, of course, have always ostensibly been given in return for acts "in the public good" of some kind, so this really isn't anything crazy or unreasonable.

So the phucking government is setting every day policy for "corporate landlords?" This is straight up marxism....end of story!