Saw the first wave of tenants moving out of my bldg today due to rent increases

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June-30-11, 07:21 PM
BrushStart

Saw the first wave of tenants moving out of my bldg today due to rent increases

Well, it's the end of the month and I ran into three tenants who are moving out of my building due to recent rent increases. All of them have been here for a very long time. One, is a nice older lady who lived on my floor that I will surely miss. She says she's moving out of the city, but didn't specify where. It's hard for me swallow that this really could be the first signal of Detroit gentrification. The downtown area really needs a surge a residential developments to offset demand. I have this eerie feeling that once landlord's no longer *need* your business, they will start to compromise good service. A new era of Detroit has begun, today, June 30, 2011.
June-30-11, 07:54 PM
Bham1982

I'm pretty sure your neighbors aren't the first folks to change apartments. That's kinda the point of limited-term leases.

If it's really true that there's a shortage of downtown apartments, then there will be new, unsubsidized renovations or maybe even unsubsidized new construction. Until then, it's pretty speculative, IMO.

But if the claims are correct, it will certainly be good news for downtown's long-term viability. We'll see.
June-30-11, 08:33 PM
cmubryan

what apt building?
June-30-11, 08:42 PM
davewindsor

Quote:

Originally Posted by BrushStart

Well, it's the end of the month and I ran into three tenants who are moving out of my building due to recent rent increases. All of them have been here for a very long time. One, is a nice older lady who lived on my floor that I will surely miss. She says she's moving out of the city, but didn't specify where. It's hard for me swallow that this really could be the first signal of Detroit gentrification. The downtown area really needs a surge a residential developments to offset demand. I have this eerie feeling that once landlord's no longer *need* your business, they will start to compromise good service. A new era of Detroit has begun, today, June 30, 2011.

And how much did your rent go up by? $1? $100? What were they before?
June-30-11, 08:54 PM
BrushStart

Quote:

Originally Posted by cmubryan

what apt building?

I don't like to give it out on the web to retain some level of anonymity/privacy.
June-30-11, 08:55 PM
BrushStart

Quote:

Originally Posted by davewindsor

And how much did your rent go up by? $1? $100? What were they before?

Mine will be going up by a little more than 10%, so yeah, about a hundred bucks/mo on a 12 month lease. That's probably enough to send some people on fixed or low income packing, which is exactly what has happened to a few residents who have been in the building for many years.
June-30-11, 09:28 PM
lilpup

So you're paying around $1k/mo? I work two jobs to pay my rent in Ann Arbor and it's nowhere near that much! I could never afford that, there's no way a retiree on a fixed Social Security income could.
June-30-11, 09:40 PM
BrushStart

Quote:

Originally Posted by lilpup

So you're paying around $1k/mo? I work two jobs to pay my rent in Ann Arbor and it's nowhere near that much! I could never afford that, there's no way a retiree on a fixed Social Security income could.

"Fixed income" doesn't necessarily mean SSI only. She might have been getting a company pension in addition, or had savings that she was drawing from. I'm not saying we should all feel bad for these people. Obviously, they could find another place to live. However, they are being displaced by higher rents, and being displaced [[by my observation) younger yuppie types. The demographics of my building is changing.
June-30-11, 09:46 PM
cmubryan

Quote:

Originally Posted by BrushStart

I don't like to give it out on the web to retain some level of anonymity/privacy.

ohhh...just say it. Did the building undergo renovations over the past couple of years?
June-30-11, 09:55 PM
Detroitej72

Quote:

Originally Posted by BrushStart

Obviously, they could find another place to live. However, they are being displaced [[by my observation) younger yuppie types. The demographics of my building is changing.

What do you have against younger yuppie people?
June-30-11, 10:05 PM
BrushStart

Quote:

Originally Posted by cmubryan

ohhh...just say it. Did the building undergo renovations over the past couple of years?

Haha. Go fish.
June-30-11, 10:08 PM
BrushStart

Quote:

Originally Posted by Detroitej72

What do you have against younger yuppie people?

Nothing, I am a younger yuppie person. All I'm saying is that I'm seeing a trend developing. If so, I want credit for being the first to report it happening, live from downtown.
June-30-11, 10:14 PM
Cincinnati_Kid

Rents are going up because of the housing bust. Most people are losing money on their homes. A lot of people are having second thoughts about purchasing a house and decided to rent. It's pros and cons to both, but until this housing mess gets straightened out, rents will continue to increase.
June-30-11, 10:19 PM
English

Quote:

Originally Posted by Cincinnati_Kid

Rents are going up because of the housing bust. Most people are losing money on their homes. A lot of people are having second thoughts about purchasing a house and decided to rent. It's pros and cons to both, but until this housing mess gets straightened out, rents will continue to increase.

Bingo. Rents were relatively cheap when I got my first place 11 years ago.

$1K+ seems to be pretty standard for a decent 2 bedroom with secured and covered parking in Midtown, downtown, Lafayette, and the riverfront. Not sure about Corktown, and I'm sure it's less in SW Detroit and Hamtramck. [[I feel as if I know the rental market like the back of my own hand, since it took me 6-9 months to find this place.)

Right now, the high gas prices more than offset the savings I might get in the 'burbs. It's been 2 months since I've moved back and still I'm marveling at the way that I can drive 7-10+ days off one tank of gas and get to work, shopping, entertainment, etc. Can't wait for better public transportation, so I can save even more...
June-30-11, 10:45 PM
mwilbert

Quote:

Right now, the high gas prices more than offset the savings I might get in the 'burbs. It's been 2 months since I've moved back and still I'm marveling at the way that I can drive 7-10+ days off one tank of gas and get to work, shopping, entertainment, etc. Can't wait for better public transportation, so I can save even more...

I hope the time you are presumably saving is even more valuable to you. I believe people generally undervalue the time they spend driving.
July-01-11, 12:39 AM
Supersport

The demographics of Woodbridge have seriously changed in my 7 years here. When I first moved in, I would estimate the area 50/50 white/black. Now, I would estimate it to be 70/30 white/black, if not higher. I also seem to notice more college kids than before, and many more college kids from outside the neighborhood walk, jog, and bike thru Woodbridge. Also, dog owners seem to have increased dramatically in what was already very dog friendly. Perhaps the most significant change has been the number of babies tho.
July-01-11, 01:38 AM
CLAUDE G

Quote:

Originally Posted by BrushStart

Mine will be going up by a little more than 10%, so yeah, about a hundred bucks/mo on a 12 month lease. That's probably enough to send some people on fixed or low income packing, which is exactly what has happened to a few residents who have been in the building for many years.

I have a friend who lives in Troy, and they pulled the same crap and went up 10%

Every year they try to raise the rent, she threatens to move out and they back off. This year, she tried the same thing, and was pretty much told that they are at 95% capacity and if she wants to move out they have no issues finding someone to move in.

Granted these places got to make money, but it would be in their best intrest not to raise rent so your not dealing with people constantly moving in and out.
July-01-11, 04:45 AM
Hermod

Quote:

Originally Posted by CLAUDE G

I have a friend who lives in Troy, and they pulled the same crap and went up 10%

Every year they try to raise the rent, she threatens to move out and they back off. This year, she tried the same thing, and was pretty much told that they are at 95% capacity and if she wants to move out they have no issues finding someone to move in.

Granted these places got to make money, but it would be in their best intrest not to raise rent so your not dealing with people constantly moving in and out.

I looked into the economics of becoming a landlord a few years back [[wife hated the stock market and heard that real estate was safe, har-de-har-har).

I backed out of it quickly after a few trips to view apartment buildings.

The tenants all think you are bloodsuckers and that the rents they pay you are "gifts".

Your costs are constantly going up and every increase you have to pass on is a big fight.

Back before the housing crash, the economics of most places was a negative cash flow with the hope of a big capital gain when you sold it [[how did that work out after 2006?)

.
July-01-11, 05:52 AM
DetroitPole

I dunno. Rents seem to go up all the time. In fact, everything seems to go up all the time, except wages. Oh, and union membership as a percentage of the total population. Yet our standard of living has been falling for years. I know those oil companies and corporate jet owners need their tax breaks though, Republicans. As they say, the rich get richer, and the poor get children.
July-01-11, 06:58 AM
wolverine

It's a sign of growth! But bad news for tenants. Everyone renting anywhere is feeling the pressure. I was happy to get a raise at work. Then my rent went from $1100 to $1175. Even worse news is there's a lengthy waitlist for my building. I seriously expect to see this In downtown Detroit as well so get building!

Well at least still cheaper for me than owning...
July-01-11, 07:47 AM
manualshift

Quote:

Originally Posted by Hermod

I looked into the economics of becoming a landlord a few years back [[wife hated the stock market and heard that real estate was safe, har-de-har-har).

I backed out of it quickly after a few trips to view apartment buildings.

The tenants all think you are bloodsuckers and that the rents they pay you are "gifts".

Your costs are constantly going up and every increase you have to pass on is a big fight.

Back before the housing crash, the economics of most places was a negative cash flow with the hope of a big capital gain when you sold it [[how did that work out after 2006?)

.

How is paying someone elses mortgage not a gift?
July-01-11, 08:55 AM
Hermod

Quote:

Originally Posted by manualshift

How is paying someone elses mortgage not a gift?

You are trading value [[i.e money) for an equivalent value [[i.e. a place to live).

Why should I, as a landlord, not get a decent rate of return on my money invested?

I can just purchase stock in AT&T and get a six per cent return.

"Paying someone else's mortgage" is propaganda from the real estate industry to get you to purchase an overpriced house for little or nothing down and a back-breaking mortgage [[thus giving them a sizable commission).
July-01-11, 09:02 AM
Bagley

Quote:

Originally Posted by manualshift

How is paying someone elses mortgage not a gift?

Please tell me you are joking.
July-01-11, 09:22 AM
Goose

Quote:

Originally Posted by manualshift

How is paying someone elses mortgage not a gift?

wow....

just wow......
July-01-11, 09:38 AM
SWMAP

Setting aside adolescent, smart-aleck inquiries and getting to what Hermod meant: too often tenants, having agreed to pay rent on, say, the 1st of every month, find that they would rather have a smartphone or a bigger tv or spend more time clubbing or something like that. They spend the money that they have contracted to the building owner on other things - much as anyone might do when they measure their own needs and wants against voluntarily giving a wedding gift or a birthday present and deciding not to give the gift.

The point is that renters pretty often think rent is voluntary and decide from month-to-month whether to pay rent or something else.

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