BiggerPockets

In most of those areas rental demand will increase causing rents to rise.

8)

We saw rents go up a bit. But now, many of the houses that haven't sold (not foreclosures) are being placed into the rental pool. They are houses that are too good to be rentals, so they will be the ones to get the tenants.

Already, tenants making $1200 a month think they deserve a 2500 square foot house with granite countertops and a 3 car garage.

I've got some nice houses and the best tenants are passing mine by, because they can rent a McMansion for $200 a month more.

I've had 1 tenant move out because he could get a better house for not much more money.

It's looking like I am going to have to reduce rents back to last years prices. The last 2 vacancies I filled, I dropped rent by 5% before I got any callers. The new tenants for both of those barely qualified.

I read PNW differently. I think he's saying that houses that are fixed up to be sold to owner occupants are getting turned into rental units because the owners can't sell them. So, the expectations of potential tenants are higher because these nice units are available for rent. Meaning then, that he has to discount units that are finished to a tenant level finish.

No implication, as I read it, about any " inferior category citizens" . A clear implication that there is a finish level for a property that's appropriate for tenants who come and go and a higher level of finish for owners who are planning to be there for a while.

Just for example, a Formica counter top is sturdy, easy to clean and does the job just fine. If its damaged, it can be repaired or replaced for minimal cost. A granite counter top requires twice a year thorough cleaning and resealing. That's a lengthy, tedious job. If its not done, the counters absorb odors and stains. No security deposit is going to cover the potential damage that could be easily done to a granite counter top.

Its not that tenants don't deserve granite counter tops. Nobody deserves granite counter tops. Owners are willing to pay the extra cost and do the extra work. Most tenants are not.

Jon

atopic, it makes no difference whether tenants are INFERIOR CATEGORY CITIZENS or not. An $800,000 house is still too expensive a house to be used as s rental.

Any tenant who thinks he DESERVES an $800,000 house, just like anybody else, is perfectly welcome to get a good job and buy one. Or he can come up here and rent one for $1,400 a month.