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reply to post by BayesLike
But it was more about buying votes really. Rent control became a negative for anyone new to the area. It backfired pretty seriously over about a 10 year period. It sounds nice that the "evil" landlords are supposed to be damaged.
Only necessary in boom towns as far as I'm concerned. I lived in a boom town that exploded over the oil patch and there was a ton of money flying around. Fast food joints were paying $15 an hour because they couldn't keep people (since the oil companies were paying people with no experience what so ever $8000 a MONTH. The only problem was that the landlords all hiked the rent up, and if you weren't in the oilfield you were barely getting by (even on $15+ an hour) because your 1 bedroom slum apartment was now costing you $1400 a month.
It got so bad that landlords were hiking the rent on people every month because there was a housing shortage and a huge influx of people who were coming in to find work. Landlords didn't care if you couldn't pay the increase because they could just give you the boot and choose from a long list of people lined up to take your place. Eventually the government had to step in and change the laws so that landlords could only implement rental hikes so many times per year and with a certain period of notice.
Situations like that, I think rent control is a reasonable idea.
reply to post by bigfatfurrytexan
Well there is always 2 sides to the story. You won't hear me arguing that much. But I would point out that while most landlords might be having their costs increase in such situations, they are hiking their rents to keep their profits in line with their costs. Average working people don't have profits coming in from multiple properties and 401k's and all that other crap. Most of them are just trying to pay their rent, keep their cupboards stocked, and their bills paid and live paycheck to paycheck. When I hear someone say they only made 50k from their property investments in a particular year I don't particularly feel all that sorry for them since I have never even made that much in a year from a full time job.
reply to post by bigfatfurrytexan
I never said she should feel guilty (nor did I imply that you should). I'm simply pointing out that the argument of costs increasing for landlords, while valid, is only telling one side of the story since landlords are increasing costs to keep their profit margins at a comfortable level.
To put my situation into perspective, when I first moved into my appartment in the location I mentioned previously, I had just started a new job and was only making $9 an hour. That was ok, since my rent was $600 a month, and I knew my landlord personally (he was a good guy). He did everything he could to keep his rental prices fair, and I respected him for that. Eventually, he felt it wasn't worth the hassle and he sold the building to a big property company (presumably to retire on the profits he made, as he was my former high school principal). Once he sold the building, my rent immediately went up $300 a month to $900. Things were getting tight at that point, and I only got a $1 an hour raise at work after being there for 2 years.
The following year, the oil boom hit, and my rent subsequently went up $200 a month every 1-3 months. At one point, I was paying $1500 a month in rent for a tiny, dingy, run down little 2 bedroom apartment, and I had no choice but to move a 3rd roommate in to cover the rent. We had myself and my roomie in the 2 bedrooms, and a 3rd guy living in the livingroom. My job however, didn't scale with the economy, since it was not tied to construction or the oilfield or service industry in any way. I was making on average $1600 a month at that time, but my rent was $1500, and it was actually the cheapest building in the city. If I were to move out and look for a 1 bedroom instead, I would have been paying $1600 a month without the benefit of having 2 roomies to help with costs (which would have been 100% of my income).
Was the realty company I was paying out the ass to a struggling mom and pop operation just trying to keep their heads above water? No. They were and are a multi-billion dollar company that frequently buys up property in thriving locations and jacks up the rent on people to earn obscene profits.
Now I can't say what I would do if I owned rental properties in that situation because I've heard money changes people. But from where I sit here, If I was bringing in income from a job and the profits I was earning from my property were being used for disposable income or investments, I would probably not gouge everyone I possibly could, and try and find a reliable hard working tenant that could use a hand and keep the rent stable for them. But I have never been in that position before, so who knows if I would change my mind once the money started rolling in and I didn't have to work anymore.
Bottom line is this: Your situation (and that of your parents) is a lovely story, and I respect where you and your parents came from, and the hard work you put in to get where you are. Not everyone has the same story however, and some people really are rich, soulless, blood sucking vampires who don't care who they ruin to earn a profit. THAT is why limits on rental hikes exist, because many people have no qualms about taking advantage of others to line their own pockets.