Rents will be going up.
That’s the latest good news for [tag-tec]landlords[/tag-tec].
For the first time in 20 years, an estimated one in four tenants will be paying over half their income in rent.
This is shaky ground at the very least.
Our policy with our tenants has been the rents should be around 25% to 30% of their income. However, we will probably have to re-think that.
Another major change is tenants are now expecting to pay higher rents. This is significant because we aren’t having to pass out the deals anymore. We can also increase rents to meet our rising property taxes.
Landlords will no longer be losing large numbers of tenants to home ownership. Now that the days of easy subprime credit are over [tag-self]tenants[/tag-self] will stay put as they save for that first home.