How your landlord calculates the rent?

How your landlord calculates the rent?

Often the landlord before you install the card, calculates the ratio of resource rents and their income (usually 30%). But the proposed amount may differ from that obtained as the solution to the landlord about the price can be quite subjective.

While big city landlords may use algorithms to establish rents, informing the tenants about the increase in writing, for many small homeowners, the process is more individual.

How your landlord calculates the rent?

The charge for apartments depends entirely on homeowners who weighed the potential profit and the possibility of losing reliable tenants. Many small landlords say that to determine the rents they can do several things: browse the ads of buildings, which are located nearby, know neighbors and visit the open days.

Christopher Athineos, who with his parents owns 150 apartments in 9 buildings in Bay Ridge, Park Slope and Brooklyn Heights, believes that this business really brings together homeowners with their tenants. For example, he grew up with some of his current clients and even baptized their children.

«I live one woman (she is 80 years old, and her husband is long dead), which pays me a fixed amount. It works like this: «Sign the renewal lease, and there will be no increase in fees»,» – said Athineos.

According to the landlord, other tenants, he usually increases the cost by 1-3% after the second extension.

«No one likes increasing the amount in the first year, – said Athineos. But I made a mistake in the past, when I have not increased the rent in over four years, and then suddenly asked 75 or $ 100. Then answered me something like: «Oh my God, you’re killing me»».

As reported by the NY Times, virtually all landlords agree that the most important is to hold on to good renters who pay on time, take care of the apartment and call you when there is an emergency, for example, runs a battery.

But there are moments when the increase in rental value are almost inevitable. For example, the landlord Amit Kalra said that when the taxes or heating costs are rising, he sends a letter to his arendatoram with a detailed explanation.

So renting a place of your own and, suddenly received a notice about the increased cost for it, you have the right to ask the landlord why it happened. Perhaps he will go to meet you and will be the same price.