How To Deal With Under Market Rentals?

Please note that we are NOT the original writers of this blog post. All credit goes to the original writers. Find the original post as published at this link: http://feedproxy.google.com/~r/LandlordRescue/~3/6r_pO4RENdI/

Please note that we are NOT the original writers of this blog post. All credit goes to the original writers.

1 – Illegally boost their rent somehow.

I see this as the greatest structural risk to an already precarious housing situation for tenants, landlords just selling, slowly but surely.

Happy Selling!

For many people the logical solution is simple to vote with their feet and market. Investment condos are purchased to be sold. It only takes a small disturbance in their life situation or a poor tenant to push them into cashing out their gains by selling.

4 – Suck it. Until they choose to leave, live to your existing tenants.
I frequently hear from landlords these days as landlords (especially condo landlords) are squeezed by negative cash flow, increasing maintenance fees and expenses and pitiful rent increases of less than 2 percent each year.

Meanwhile many landlords are trolling MLS looking for the lease price their condominium could get if their tenants moved out. Look at that I could find an extra $400 per month… or $600 a month… or $800 per month.

Condo landlords particularly are not even able to access the Rent Increase over the Guideline first due to the expense of the application and legal representation, it’s just not sensible. Secondly the law doesn’t allow it for maintenance fee increases.
Number 1 and 2 have severe consequences, essentially from the present environment, any monies you receive from increasing someone’s lease must be paid back, including any future rent increases based on that illegal rent increase if the tenant figures it out and goes to the Landlord & Tenant Board
3 – Sell the place, enjoy your gains.
This leaves

It was a grave public coverage error to ever depend on such fractional ownership in lieu of purpose built rental housing, which will come back to haunt our society. We need a public policy which relies on steady ownership of rentals, and doesn’t dehouse tenants each time a landlord has to cash in their condo to fund their maternity leave or end the negative cash flow.

Many landlords have also had to shoulder the burden of increases in their mortgage payments as their interest rates went up.

If you give fake see that you will move in, you have to pay the tenant one month’s rent and you have to live there for a year and you cannot sell it or lease it. Penalties are tough including a possible $25K fine. So no.

The expense of turning over the tenancy is rarely accounted for in these calculations, however; for the landlord who is constantly shoveling money in their condo, not having the ability to increase the rent is very frustrating.

Visit FreeRealtyOnline.com to list your home for sale by owner at no charge!