RENT CONTROL OR “SKY’S THE LIMIT”

Hi Uncle Jimmy,

Just wondering if you know how high a 3 room apartment can be raised, (percentage wise), annually in an area where there is no rent control? Is there any set rate by the state or is it "the sky's the limit"? Just wondering if you could shed some light on this matter.

Thanks,
Kathy
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Kathy,

Uncleism: "Fairness is in the eye of the recipient."

To the best of my knowledge, the market place determines rental value (the sky is the limit), not the state (except in rent controlled areas).

On the Radio Show I often speak of a "universal paradigm." Most people determine fairness from their perspective.

Parents think kids get too much; kids think parents are tyrants.
Employers want maximum work for minimum pay; employees want maximum pay for minimum work

Landlords see ever-increasing costs for taxes, insurance, utilities, maintenance, delinquent renters with little respect for the property, and a legal system that favors the tenant.

Tenants see rent increases as price gouging for property that could use additional maintenance, should be updated, and additional rent for the same old same old.

Neither takes the time to understand the other viewpoint. Both lose formidability for failing to see the underlying facts.

Tenants can negotiate longer leases and avoid the uncertain increases, but they sign for a year and hope for the best. Landlords can raise rent as they see fit but lose tenants and rents for vacancies. Tenants in rent controlled housing don't care if the owners lose money. Landlords charge what they can get away with. And so it goes. Fairness is in the eye of each player. Formidability is improved when we know the mind of the "other side of the table" and play the game better.

We have choices to make. We can whine about the unfairness of the market place - nobody cares. We can improve our market skills and win more than we lose - then, care for others.

As I say at the end of every show, "Think and be formidable."

Everybody's Uncle