Apartment Complex Owners - Society's Biggest Fools ?

Discussion in 'Clean Debate Zone' started by protectionist, Oct 20, 2014.

  1. protectionist
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    protectionist Gold Member

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    It has become the rule for apartment complexes to require an income of 3 times the monthly rent, to rent an apartment. Does anybody have any idea why ? If an apartment was $600 month, a person would need an income of $1800/month to "qualify" to rent that apartment. Why in the world should somebody need $ 1800/month to rent a $600/month apartment ? This is absurd.

    Fact is, many of the people with monthly incomes less than twice the monthly rent are more secure and more sure rent payers than those with the higher incomes. That's because, in America, there are millions of senior citizens receiving Social Security, with incomes well below the required 3 times figure. They may be below the 3 times figure, but their income is more SURE and the rent payments, likewise more SURE than younger people still in the workforce. Same with the VA pension payment I get every month.

    Somebody may have an income of $2000/month (or much more), and that's great - for now. But what about next month ? Or the month after that ? Or 6 months down the road ? The job holder may have a nice income today, but he may have NONE next week, while the senior Social Security recipient's lower (but more sure) income remains intact - month after month, year after year, as does the VA pension recipient.

    Recently, I walked around in my apartment complex (which has 450 units) and I saw a couple of dozen eviction notices stuck on the doors. All were young people employed in the workforce (or at least they were). Not a single one was a senior on Social Security.

    Apartment complex owners: Are you getting this ? You are your own worst enemies.

    Business owners constantly crab about government intruding in their lives. But aren't they (the apartment owners) intruding on the lives of the people they unfairly, improperly (and stupidly) discriminate against ? So when these bozos fail to get it right, government winds up having to step in and fix their mess. In this case, we should have legislation banning apartment complexes from discriminating against people on the basis of income, as long as their income is about $500 more then the rent.

    So, for example, in the case of the $600/month rent, the requirement ought to be an income of $1100/month, not $1800/month. And after that, won't the apartment owners feel good about all the secure Social Security renters they get, and the fewer evictions they have to enact ? That should more than make up for how bad they'll feel, realizing what idiots they've been.
     
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  2. protectionist
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    protectionist Gold Member

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    Where I live, young people losing jobs get evicted like flies. Older people never do. I'm one of them. My whole income is way below 3 times my rent. And I'm still here in this apartment complex after 4 and half years (53 consecutive rent payments, all on time). In that same period of time, we've had about 85 evictions (all young working people - losing their jobs).
     
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  3. Boatswain2PA
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    Boatswain2PA VIP Member

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    It could be an unintended consequence of an existing regulation. Let me explain...

    Some (many?) states do not allow people to garnish social security, disability, or welfare payments. This means if a disability recipient rents my house and trashes it, I can take them to court for damages, but I can't garnish their gov't income....which means I'll never get the money.

    Result? I don't count those as sources of income.
     
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  4. protectionist
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    protectionist Gold Member

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    Guess who trashes apartments. It ain't old people.
     
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  5. Disir
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    Disir Gold Member

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    I remember coming across a website back in 2007 that contained discussions about how the rent was going to be jacked up to profit off of those that were losing their houses. They did it because they could. They do it because they can.

    In some areas there was a 10% increase in rent last year. That's one year.
     
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  6. rightwinger
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    rightwinger Award Winning USMB Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Apartment Complex owners can call their own shots

    Many, many people cannot qualify for a mortgage (rates are still low) because of bad credit. They are flooding the rental market and apartment owners can set their own terms
     
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  7. ogibillm
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    ogibillm Gold Member

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    Capitalism!
     
  8. Boatswain2PA
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    Generally no, but sometimes. And since I cannot legally use someone's age to determine whether I will or will not rent to them, I use their (non-governmental) income.

    Landlords have an incredible amount of rules and regulations they must follow....they certainly don't get to "call their own shots."

    Capitalism is GREAT!. It lets someone who is relatively poor buy an old house in poor condition, fix it up while they live in it, then rent it out while they move into another old house in poor condition....and do it all over again. In a few years, they're not so poor anymore!
     
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  9. HereWeGoAgain
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    HereWeGoAgain Diamond Member

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    Sure at first....it's when they turn into the cat lady that the problems start.
    And I'm only half kidding here.
     
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  10. Zander
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    Zander Platinum Member

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    I own some apartment units here in LA. I've never heard of the "3x income rule".

    I give my property management company discretion, but generally speaking they require the renters spend no more than 39% of their gross income on rent.

    So if you have a $3000/ month income - no more than $1170.00 in rent.

    Seems to work, we have no delinquencies and no vacancies.

    But I am still going to sell (actually we will be doing a 1031 exchange) the residential units this year. I prefer industrial properties.....
     
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