rentalsecrets

When laws statutes or rules are created or employed for political purposes there are consequences Some of these consequences are seen but the vast majority of them are unseen It's like an iceberg It may seem sizable on the surface but most of it is hidden underwater just like the investment decisions of investors

This seems to create a precedent for the state of New York to inject itself into the process of property valuation for sales and loans when the process of valuing property is much more art than science Here's a simple example of why value is so difficult to determine Let's look at a simple bottle of water If you buy it in a package on a shelf that bottle might be worth 50 cents If it's in a refrigerated case it might be worth 2 dollars If it's in a nightclub or on an airplane it might be worth as much as 6 dollars but it's the same bottle of water

The governor of New York Kathy Hochul has attempted to assure the general investing public that they won't be treated in the same manner as Trump She's trying to calm the fear that has come from the ruling insisting that quote Law-abiding rule-following New Yorkers who are business people have nothing to worry about because they're very different from Donald Trump and his behavior But the concern remains that while Donald Trump is in their sights today who's to say that some other investor won't be in those very same sights tomorrow if they become politically undesirable Her statement displays an incredibly small view of the world because many people from around the world may have been thinking about investing in New York not just New Yorkers But they may be rethinking those plans just as Kevin O'Leary and Grant Cardone are

Limiting investment in housing costs renters real dollars that they have to go out and earn According to Apartment List counties that add housing fastest saw much lower increases in rent from 2017 to 2023 counties in New York that added 11 percent to their housing stock saw single-digit increases in rents over that period while counties that added only one percent to their housing stock saw increases of over 40 percent Again all of this research was done prior to the ruling that was just handed down in the Trump case

Already several prominent real estate investors including Grant Cardone and Kevin O'Leary have stated that this one ruling is single-handedly pushing them to shun investments in New York in favor of other markets Regardless of what you think of him as an individual this ruling will have massive negative implications for renters not only in the city of New York but across the entire state

The crux of the case is that Donald Trump provided inflated values of his properties when seeking to obtain loans from major financial institutions These financial institutions were well-versed in their business performed their own assessments of value and all of these loans were repaid in full By claiming a higher value for his properties the judge found that Donald Trump was able to benefit from lower interest rates than he would otherwise receive The fine of four hundred and fifty three million dollars was meant to recapture these quote unquote ill-gotten gains And as these transactions happened years ago Part of that fine is for interest being charged from the dates of the transactions until today #RenterConfidential, #NewYorkRealEstate, #TrumpRuling, #RealEstateInvesting, #HousingMarket, #KevinOLeary, #GrantCardone

The next stage of your life will be just the fresh start that the doctor ordered. The property manager emailed you the link to the application a couple of days ago and you promptly filled it out. And after running a credit check they've come back to you with a problem. They're saying that your credit score is too low to qualify for the apartment. And you think to yourself that can't be. If my credit score was that low I'd know about it. But yet here we are. Today we're covering the importance of your credit score.

Street parking. This is where residents park their vehicles on the street, hopefully somewhere near their building. This is by far the cheapest parking option and in crowded urban areas it is often the only option. Not only is it the most competitive option but it is completely beyond the control of your property manager. There's absolutely no way to know what parking spots will be available until you drive around looking for them and what you do find may be some distance from your apartment. In fact, people who don't even live on your street may very well be parking in your preferred parking spot.

As a renter understand that you are of central importance to the landlord and all their vendors. It is you who gives energy life and vitality to the buildings you live in. You are the source of the value that the building has. Whether a particular rental community continues to receive this from you or not is completely up to you. You are a rental market of one. They have to convince you not the other way around.

Considering the 12, 16, 18, or even more years spent in formal education it's somewhat shocking that they couldn't spare an hour or two to provide some guidance on the residential rental market that you were thrust into after graduation. The whole process feels completely intimidating. Well if you truly knew just how important renters are to the residential rental market and who is dependent on the decisions you've made ever since then you might not feel so intimidated. We're covering the true importance of you the renter on today's Renter Confidential.

This is just like the process every superhero goes through in the movies. One of the more humorous superpower discovery scenes is in the movie Shazam where Billy Batson and his foster brother run through scientific superpower discovery tests. But the superhero in every origin story has to learn how their powers are used. The only difference between the movies and real life is that in real life everyone has a superpower including you the renter.

36 million households paid $512 billion in 2019. That's over half a trillion dollars. Yes that's trillion with a T. To further put this into perspective, it is more than the annual revenue of Apple. It's nearly double the annual revenue of Google and more than four times that of Facebook. In short, it is a massive industry that all comes down to convincing individuals and families one by one to call a particular room, trailer, apartment, condo, or house home So as the renter you are the foundation for the entire ecosystem.

Newly built apartment buildings are desperate to get renters to move in. And I don't use the term desperate lightly at all. The value of that building is absolutely dependent on having people move in. Nobody wants to live in a lifeless monstrosity of glass brick steel concrete and wood. They want to live in a community. They want to hear and see children playing outside. They want to see their neighbors enjoying the courtyard and using the swimming pool. They want to chat with their neighbors while walking the dog. None of these things are possible unless renters move in to call the building home. So here's the takeaway. As a renter understand that you are of central importance to the landlord.

Where did that price come from? They decided to ask for that price based on their perception of what the rental market would pay for their property. The keywords in that sentence are ask and perception. The rent prices you see are asking prices. This means that they're asking for that amount in exchange for housing services. They perceive that enough people have the ability and willingness to fill their vacancies and reach their desired level of occupancy at this chosen price point. Whether you actually pay that amount is another question entirely. Landowners can ask for whatever they want but that doesn't mean they'll necessarily get that amount from you.

You can't control the residential market. What you can control is how you respond to it. Notice that I didn't say how you react to it. Reacting is what the people in the video are doing. The emotion is raw and the feelings are real but they haven't taken the time to truly stop and reflect on how to solve their problem.

School did not prepare them for the real world. How many financial literacy classes did they likely have? Zero. How many negotiation classes? Zero. Classes on how renting works? Nada. Classes on critical thinking? Zero. And yet the very first steps required after graduation are to negotiate for a job, earn money, and find a place to rent.

If the market isn't working for you vote with the dollars you have by putting them toward new solutions that do work for you. Is it going to be easy? In a word, no. It's probably not as easy as the off-the-shelf housing solution those in the video clearly don't like. But in the long run, choosing better options will likely lead you to a better place and certainly enhance your financial resilience. Who says you have to get a one-bedroom apartment? Who says you have to live in a certain neighborhood in a certain city or even in a certain state?

The very first steps required after graduation are to negotiate for a job, earn money, and find a place to rent. I'm not placing any blame on them as it isn't really their fault. As one gentleman in the video points out they followed the script and did everything they were asked to do. Good grades. Check. College. Check. Find a job. Check. In this specific respect, they were failed by those claiming to prepare them for the future. In my opinion, they were set up to fail which of course is a topic for multiple conversations in and of itself. A little less time spent defining microaggressions and handing out participation trophies would have gone a long way toward more time for much-needed real-world education.

We've been trained to be consumers. To walk into a store, pick up the product that solves our problem, pay, and walk out. Never once thinking about whether the market is presenting us with the best options available. Don't always depend on the market to present the housing options you'd like to see on a silver platter. Determine what you want and need and if the market isn't giving it to you then create it. You vote with your dollars each and every transaction. Rental housing is no different.

If you're still looking for that roomy feeling head to the south and southeast because unfortunately as you head toward the Pacific and Pacific Northwest apartments become quaint and cozy - real estate code words for tiny.

In 2022 the average apartment size was eight hundred and eighty-seven square feet, which is a drop of fifty-four square feet from ten years ago and a drop of thirty square feet from the year before which is the steepest year-over-year drop in history, according to RentCafe.com. For further perspective, fifty-four square feet equates to a little more than half of a bedroom. In this case, inflation is hitting in two ways. First average rents are going up. Second, the apartment you're renting is getting smaller. Yes shrink inflation really is a thing.

It's also possible that inflation could lead to fewer parking spaces on newly built multifamily properties or each individual parking space might be smaller. This is because developers may prioritize other aspects of the building such as amenities or high-quality materials over providing ample parking. In addition, if land prices are increasing due to inflation developers may need to further maximize their use of available space by constructing more units and reducing parking spaces.

As a renter it's not easy to understand how and why certain rental product arrives on the market. The process from conception to permitting to financing to construction is about as clear as mud to the average individual. But inflation would clearly affect the cost of all the inputs required to complete the project from lumber to construction wages to copper wiring in order to offset increase in costs the attributes of the properties that would get built would need to be altered to adapt. These alterations may include apartment size the quality of appliances installed and amenities on any given property.

Shrinkflation is more deceptive. With shrinkflation the actual price of the item doesn't change. What changes is the item itself is smaller or contains less product. A really good example of this is ice cream shrinking from a full half gallon or two quarts down to one and a half quarts even though the price remained the same.

If multifamily property developers use lower-quality appliances you as the renter may experience lower energy efficiency in your apartment. This can lead to increased utility bills and potentially more frequent breakdowns of the appliances. Hopefully, the developers won't skimp too much on appliance quality as renter dissatisfaction could reflect poorly on the overall perception of the property leading to negative reviews or difficulty attracting new tenants. While less expensive appliances could help the project be more profitable in the short run it could result in a more expensive rental experience over time. However, developers have sold the property since then and are long gone by the time these costs materialize for renters.