Are rental prices coming down at all?

amother

Buttercup

Tue, Jan 30 2024, 9:16 pm

amother Chestnut wrote:

Even if mortgages didn’t go up, all other expenses did. People rent out their homes to cover their expenses.

Most people didn’t get 40% raises. A rent raise makes sense to cover living expenses (even though we were told explicitly “this is the amount of rent because this is the amount ohr mortgage is - $2100). But going from $2100 to $4500 doesn’t make sense.

I mean from a capitalistic standpoint yes but from ethical no.

amother

Buttercup

Tue, Jan 30 2024, 9:17 pm

mig100 wrote:

Rent goes according to value of the current real estate not what it was purchased at 5 or 10 or 30 years ago.

That said doubling rent on a current tenant has limitations

The houses were only a few years old. The first houses were completed in late 2017, and they continued building for at least 2 years. Some were finished 2019. Rents were raised during COVID. Some of the houses were a year old.

Chayalle

Tue, Jan 30 2024, 9:20 pm

amother Buttercup wrote:

Crazy. About six years ago we rented in prospect square and all the upstairs rents were $2000-$2100. They raised them as high as $4500 about three years ago. The mortgages didn’t go up !

I can tell you I have a HELOC on my property, and the interest has tripled.

amother

Buttercup

Tue, Jan 30 2024, 9:23 pm

Chayalle wrote:

I can tell you I have a HELOC on my property, and the interest has tripled.

It’s hard for me to believe that more than doubling the rent would be justified.
In one case an investor owned about ten houses and sent letters to them informing he what he was going to do. It was a very short notice. Either move by X date (when there were no houses available in the middle of the pandemic) or your rent will be going up to $4500.

Chayalle

Tue, Jan 30 2024, 9:27 pm

amother Buttercup wrote:

Raising rent like that on an existing tenant is wrong.
But in six years, I'm guessing the original tenants moved out. After that, the landlords can rent their houses out to new tenants for whatever price they want. No one is forcing you to rent a house if you do not want to pay their price.
I have an existing tenant. If they moved I would raise the price of my rent to someone new, because the costs have gone up extensively.

amother

Buttercup

Tue, Jan 30 2024, 11:44 pm

Chayalle wrote:

It wasn’t six years. I don’t live there anymore . The houses had been occupied for 2-3 years by original tenants.
I totally understanding raising rent to market value for new tenants. And I understand after years having raises on tenants. But that obviously wouldn’t be doubling the rent and some. I forgot what the agreement in the commonly used lease says- 5% a year ? Something like that . So going from $2000 to $2100 is totally understandable - in fact we were there for 4.5 years I believe - late 2017 to early 2022. While we were there our rent went up $300/month and we didn’t complain. That’s normal and understandable .

amother

Burntblack

Tue, Jan 30 2024, 11:52 pm

Reading this thread as someone who’s looking for a rental in Brooklyn and I’m choking reading these prices.
4 bedroom 2 br goes for $5000+ in Brooklyn

No wonder people are moving to Lakewood regularly, regardless of the school crisis.

amother

Chestnut

Wed, Jan 31 2024, 7:40 am

No one is renting out their house in order to do chessed. People rent their basements or houses to help cover their expenses. Expenses are high so rents are high. Inflation is hurting everyone.
We rent out our basement. I hate having people living downstairs. I know they can hear everything and it bothers me that our privacy is compromised.
I hate not having a private area for our guests. I wish they could stay in our basement.
My teen daughters wish they had a place to hang out with friends especially when they want to study. But renting out our large basement apartment is how we are making ends meet. I’m not looking for a chessed opportunity here.
Before covid we were getting $1100. Different tenants now and we are getting $1850. We could get more since our apartment is very large but we already raised the rent once in the 2 years our tenants have been living here so we won’t raise it again at least for another year. If they move we would ask new tenants for a higher rent.
We still owe a lot even though we rent out our basement.
Yes, I definitely think that I nice townhouse is worth in the 3’s. Those houses aren’t really old. They didn’t exist 35 years ago. That’s not considered an old house. They aren’t brand new but they aren’t so old either.

amother

Gold

Wed, Jan 31 2024, 7:52 am

amother Burntblack wrote:

That's because 4 bedrooms in Brooklyn is extremely rare. Many people with houses only have 3.

Chayalle

Wed, Jan 31 2024, 8:05 am

amother Buttercup wrote:

I bought my house six years ago. It is now worth almost double what I paid on the market. So it makes sense that rents have also gone up by alot.
Everything costs more now. I'm paying almost double tuition for my 10th grader, to what I paid for her big sister a few years ago. Groceries are thru the roof. Gas....The only thing that has not gone up is my salary.
So I'm not raising my tenants by more than the 5% specified in the lease, but if new tenants moved in, I would be charging whatever the going rate is in my area.

amother

Chestnut

Wed, Jan 31 2024, 9:30 am

amother OP wrote:

Bump.

Im curious what the going rental price for an older townhouse (15+ years).
Sterling Forest, Chateau, Presidential, Dena/Shoshana, Tamarind, Elmwood, Always.

No attic.
No upgrades.
Just a classic 5 bedroom, 2 1/2 bathroom basic townhouse.

Those houses are nice and comfortable. They aren’t brand new but they certainly aren’t 75 year old dilapidated houses either.
I grew up in a shoebox in NY. The 3rd bedroom which was my bedroom was smaller than my walk in closet in Lakewood.
I wish my family had a Lakewood townhouse growing up. We had 1.5 bathrooms. No room to spread out. You have no idea how much more comfortable Lakewood townhouses are. Oh and our NY house was around 60 years old. It’s certainly worth double than a basement but it’s going for even less than that!

amother

Quince

Wed, Jan 31 2024, 9:40 am

Renting a townhouse isn’t going to be cost effective unless you have hud and even then most landlords will insist on you paying extra under the table. I’m on hud and there are very few options that will take the hud rate. Most people will rent tiny houses out in Jackson or Manchester to make it work. Renting in Lakewood proper is for the richer people because what you’re calling a basic townhouse is twice the size of the houses out in Jackson and Manchester.

amother

Quince

Wed, Jan 31 2024, 9:44 am

amother Chestnut wrote:

And I grew up in Lakewood and I find it hilarious that people are now comparing Lakewood rentals to NY. It used to be a totally different crowd and not comparable. Now everyone from NY either is moving to Lakewood or has already moved. No wonder nothing is affordable anymore.

amother

Buttercup

Wed, Jan 31 2024, 10:10 am

amother Quince wrote:

My house in Manchester is bigger than my townhouse in Lakewood was

amother

Quince

Wed, Jan 31 2024, 10:22 am

amother Buttercup wrote:

My house in Manchester is bigger than my townhouse in Lakewood was

Ok and your house isn’t affordable either. People are moving into the tiny houses because that’s what they can afford.

amother

Buttercup

Wed, Jan 31 2024, 10:34 am

amother Quince wrote:

Ok and your house isn’t affordable either. People are moving into the tiny houses because that’s what they can afford.

Actually it was $419k Smile

a few years ago
But we are renting . We pay in the 3s

amother

Quince

Wed, Jan 31 2024, 10:56 am

amother Buttercup wrote:

Actually it was $419k Smile

a few years ago
But we are renting . We pay in the 3s

Right for renting. HUD will pay a bit under 3k. So it depends where in the 3s and how much you are earning because you legally can only pay up to 40% of your income.

Lakewood rate is lower than Manchester and Jackson. I think it’s at mid 2s now. So unless they raise Lakewood rate soon if we want to move anywhere we will probably need to move out of Lakewood.

mig100

Wed, Jan 31 2024, 11:23 am

amother Quince wrote:

doesn't it depends how many kids you have?

amother

Chestnut

Wed, Jan 31 2024, 12:05 pm

amother Buttercup wrote:

My house in Manchester is bigger than my townhouse in Lakewood was

She’s not talking about the houses people are buying in Manchester. She’s talking about people who are getting hud and renting very small houses on the outskirts because Lakewood is more expensive.

mig100

Wed, Jan 31 2024, 1:57 pm

amother Quince wrote:

How does the 40% of your income work? that is how much hud will pay for your rent?