Because renters are a 68% majority here in San Francisco, I decided to position myself as a renter at one of these random mixer parties my friend invited me to. The age demographic was between 24-35 and the theme revolved around sustainable living. We got to talking about why do rents keep on going up.
Landlords are considered the enemy in our famously liberal city and I wasn’t in the mood to defend myself for owning rental properties. It doesn’t matter whether I saved and took risk. All that matters is I’m a bad guy for charging rent.
Why Do Rents Keep On Going Up? Arrr!
I armed myself with common phrases such as,
“Landlords are evil!”
“I can’t believe how expensive everything is in the city!”
“Damn those Facebook, Twitter, Square, and Googlers jacking up our rents!”
“The city needs to regulate rents further as this is getting out of control!”
“My greedy landlord wants to raise my rent by 10%.”
“My landlord will have to pay me big bucks to get me to move if he wants to sell his place as I ain’t moving!”
and my favorite…..
“Let’s vote on more government spending since homeowners have to pay the bill through their property taxes and we don’t!” * Evil laugh at the end *
Little Do Renters Know
Little do my fellow renters know that landlords are wisening up to the fact that this is how renters perceive landlords. Most landlords started off as renters, so we know how it feels to be a renter. Yet for some reason, so many renters feel we come with silver spoons in our mouths.
Renters don’t see all the years we spent scrimping for a downpayment. They don’t experience the dismay of seeing our cash balance get wiped out after we cut a huge check for the downpayment. Renters don’t see the upkeep we have to do once a tenant moves out. All they see is a landlord cashing their rent check every single month.
Landlords will experience forever rising costs thanks to labor and materials inflation. We must also perform regular maintenance such as painting the walls, changing the carpet, upgrading the plumbing, and changing the appliances. We’ve come to accept these costs as landlords. Renters should also logically expect rents to go up forever as well.
What landlords should also expect is for our property taxes to go up regardless of the state of the economy!
Thus every property owner needs to fight their property taxes every year. You cannot trust the government to decrease your property’s assessed value during recessions because they want to make as much from you as possible. Furthermore, every property owner who lives in an area primarily populated with renters needs to keep on top of new legislation.
San Francisco residences voted on some multi-billion dollar high speed train to LA because they thought they didn’t have to pay for it since it would go on homeowner’s property tax bills. They were wrong. Rents are up over 15% year over year and rising.
Careful What You Vote For
The number one reason why I wrote the article, “Renters Should Pay More Taxes” is because I want renters who vote on more spending but don’t have to pay for it, to feel the anger of what it’s like to pay more taxes. By the 150+ comments in the article, it’s obvious renters don’t want to pay more taxes!
Hence, if renters don’t want to pay more taxes, why do they think property owners would be happy to pay higher property taxes? It makes NO SENSE! You cannot have it both ways. The reason why rents keep on going up is because of ever increasing irresponsible legislation that spends more than it makes. The rising costs of construction and general inflation are also important reasons for ever rising rents, but those are largely out of our control.
There is too much free-riding in this economy. It is absolutely wrong for one group of people to vote on legislation to raise taxes on another group of people without having to pay more themselves. This is called stealing. But I guess stealing is OK, so long as you’re the one receiving the benefits.
The more people vote on wasteful government spending that hits homeowners, the higher rents go. Landlords aren’t going to eat all the costs for such frivolous spending, renters are. Landlords will learn how to raise the rent without feeling guilty. Please think thrice about the next big spending plan which promises you great things at another’s expense. You won’t be able to stick it to your landlord, because your landlord has had enough.
Untemplaters, are you a renter or a landlord? What are property taxes like where you live? What are your thoughts on why do rents keep on going up?
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