A survey of U.S. renters reveals a number of key insights into both the typical renter’s current living situation as well as their aspirations and levels of satisfaction on various topics.
One in five people (21% of those surveyed) do not plan to purchase a home in the future. While the vast majority of respondents currently rent their home, only 79% of all respondents want to buy in the future. This is a significant difference from last year’s survey results, where 90% of respondents reported they planned to buy a home in the future, and just 10% did not.
A state assembly committee voted Thursday [January 11, 2018] to reject a bill with broad implications for the ability of California cities to impose rent control restrictions on local landlords. The bill would have repealed the 1995 Costa-Hawkins Rental Housing Act, which exempts newly constructed housing from rent control laws and prevents cities from limiting a landlord’s ability to raise rents on a unit after a tenant moves out.
323.APARTMENTS (formerly Admiral Realty) has average cumulative rent increases of only 2%. Rent control imposed on 323.APARTMENTS properties would actually raise rent, not stabilize them as the law intends. Rent control laws artificially control prices by ignoring tenant loyalty and market conditions. A landlord is not allowed to offer rent discounts to long-term loyal residents because it will lose the right to raise the rent at a future date, since rent ceiling are in effect. Politically, the topic rent control is favored by tenants because they are led to believe that the law will keep their rents under control. However, tenants are not warned about the hazards of controlled pricing and its harmful effects on housing quality, neighborhood crime, and the ill effects from landlords who are forced to raise rents according to rent control timelines or be disallowed from raising rents later. Basically, rent control laws dictate when a landlord can raise rent, even if the economy is dismal. This means a landlord is forced to raise rent in poor economic conditions or otherwise lose the right in the future, when the market conditions improve. This type of pricing control discourages real estate investment and deteriorates cities.
What is Costa Hawkins?...
Researchers at the University of California in Los Angeles (UCLA) examined rents and home prices in the 100 largest metro areas in the U.S. between 2012 and 2016. They found that a 10% increase in Airbnb listings leads to a 0.39% increase in rents and a 0.64% increase in house prices. By comparison, Admiral Realty average rent increase over the entire duration of a resident's occupancy is only 2% (on average). Rent control rent increase is about 5%. Admiral Realty strictly forbids room share hosting due to liability reasons and safety concerns from unknown non-qualified occupants. However, this UCLA report suggests that apartment tenants who do engage in such activity are not only risking automatic eviction for breach of contract, but they are also cannibalizing their own homes by raising rents and pricing themselves out of the apartment building and neighborhood.
“That may sound minuscule, but between 2012 and 2016, rents rose by about 2.2% annually [on average in the 100 areas], so a 0.39% increase in that context isn’t very small at all,” says Edward Kung, an assistant professor of economics at the University of California Los Angeles and one of the study’s authors. The same is true for home prices, which rose by an average of about 4.8% annually in the 100 areas, he adds.
Los Angeles has a lower rate of eviction than Las Vegas and Atlanta. A recent report from rental-listings site Apartment List found that locales with higher rents, like New York, Los Angeles and the Silicon Valley area, have among the lowest eviction rates in the country. Some of the highest rates were found in more modestly priced spots like Memphis and Las Vegas, according to survey data the company collected from 8 million users over the last three years.
What is ordinary wear and tear? Why is life expectancy of household appliances and fixtures important? How do you calculate tenant responsibility? This document (from the Montgomery County Office of Landlord-Tenant Affairs in Rockville, Maryland) provides insight into the depreciation costs involved in calculating a security deposit.
1 bedroom and 2 bedroom statistics for every city nationwide shown below:
SOURCE: Business Insider
Living in an apartment? Expect your rent to go up again.
Renting has gotten increasingly expensive over the last five years. The average U.S. rent has climbed 14 percent to $1,124 since 2010, according to commercial property tracker Reis Inc. That's four percentage points faster than inflation, and more than double the rise in U.S. home prices over the same period.
Now, despite a surge in apartment construction, rents are projected to rise yet another 3.3 percent this year, to an average $1,161, according to Reis. While that's slower than last year's 3.6 percent increase, the broader upward trend isn't going away.