INSANITY! But That IS The Market

[John Thedford]

Sent a tenant a notice of rent increase at the end of their lease if they want to renew. They texted yesterday saying they are moving. They have been excellent. I was increasing to $1475. Since their message, I posted it for $1625. Over 85 inquiries yesterday alone. So, I raised it to $1800 and my phone is still blowing up. I want long term people so I hesitate to continue the raise. At some point things HAVE to change. I truly am amazed at the number of people willing to pay these prices for a small <1300 sf house in the Cape Coral area. Markets dictate price. 

[Jay Hinrichs]

Originally posted by @Marcus Auerbach:

Same in Milwaukee. Posted a single family for $1,650 and had 52 inquires the next morning. They have two dogs, which puts the rent at $1,700 total. I had it previously rented for 1,500. 

A lot of people told us the reason for moving is that their currently rented home is being sold by the landlord. Now I know where some of the inventory is comming from.

I probably could have gotten more, but we also dont want to gauge and have long term tenants that are financially comfortable. Wages are going up, but not that much.

Rent growth had been quite flat in the last years, about 1.5% here, but I think we are going to see rents go up significantly this year. This is also in line with the general inflation we see. 

Oregon and Portland had very flat  rent rates for at least a decade then exploded.. all that did was lead to state wide rent control

I think folks need to be cognizant of this as we move forward.. Not saying dont rent for market but dont be shocked if there is a renter revolt.