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@Mirek landlords really think they are the ones who are the worst off? 😂 😂 😂
In most apartments, landlords can just raise the rent whenever the tenant signs a new contract. People have had their rent raised 40% and then had to leave or pay a ridiculous amount. They can screw tenants over whenever they want.
@ShadowyZephyr I feel like both the landlord and the renter can screw each other over. My friends parents are landlords, and I’ve heard horror stories about bad tenets. For example if they refuse to pay rent, it could take as long as a year to evict them. Meanwhile the landlord still has to pay the mortgage and utilities.
@NathanDickson Can't evict in Winter months and some people know it. Then you got a bring a deputy around for eviction. Not getting paid, being legally exposed when you're the one being screwed, and then they'll destroy everything on the way out just out of spite. Sometimes tenants are good, sometimes they are devil incarnate. Either way, in the future tenants should be shamed for not tapping the 15% tip button when paying their monthly rent. A little appreciation would be nice.
@NathanDickson That is true sometimes, but it's because the system is so clogged, especially during the pandemic. Evicting isn't supposed to take a year, and normally doesn't. I agree there are bad tenants, and they can screw landlords over, not disagreeing with that, but that doesn't represent a majority of tenants.
The simple reality is that most tenants cannot afford to pay 15% extra on top. Many landlords make a lot more than their tenants do. If you want tenants to pay 15% more, in most places, you can literally just raise their rent in a year.
@Mirek I think my main issue with this becoming a reality is not about whether landlords deserve tips, but that the "tipping culture" is that you tip servers with low wages. You wouldn't tip your doctor, they'd probably be offended. If you want to thank your landlord it would be more appropriate to give a gift than a monetary tip.
@ShadowyZephyr Agreed. I also said that no it was not going to be normalized.
I do think the true problem for everyone is inflation. House prices were skyrocketing, now they are starting to level off a little. If you want to be a home owner you need to have some serious savings and pay a huge interest rate. Also I live in the west, and migrating Californians are driving the price up too. I wonder if anyone born in my area will be able to become home owners. :(
@NathanDickson Kind a unrelated to this market. But I feel like being technically correct today.
the true problem for everyone is inflation
In theory inflation shouldn't be a problem for most since by definition wages should go up equal to inflation. If wages don't go up, then the real problem is a decrease in real wages, not inflation. In theory inflation should only hurt unsophisticated investors who have a lot of cash savings. Poor people generally have debt rather than savings. Inflation erodes the value of the debt and makes it easier for them to pay off, so inflation shouldn't be a problem for most people.
House prices were skyrocketing,
While this is happening, it is in some sense unrelated to inflation. Since if it were just inflation wages would keep up with increasing house prices (they are not).
wonder if anyone born in my area will be able to become home owners.
Renting is often cheaper, so this might be a good thing.
@moyamo I respectfully disagree friend.
Inflation is a major problem. In “theory” wages should increase with inflation, but there are two problems.
1 wage increases have always lagged behind inflation
2 The quarterly house price to income ratio has steadily been going up since the 1960s. If the income would also increase with inflation then the house price to income ratio would remain constant.
The claim that house prices are unrelated to inflation is a complete falsehood. The consumer price index (which all inflation data is based on) allocates housing as its largest cost. I think you should research what makes up the CPI friend.
Renting is cheaper in the short term, in the long term you never build up any equity. This is a major problem for the up and coming generations.
wage increases have always lagged behind inflation
That can't be true in the long-term if Real GDP per capita is increasing (which in some places it is not. But on average World GDP per capita increases by 1% every year), sure maybe right now wages are increasing slower than inflation, but at some point in the past they were increasing faster than inflation, and they probably will again some point in the future.
The quarterly house price to income ratio has steadily been going up since the 1960s.
I'm not disagreeing with this.
If the income would also increase with inflation then the house price to income ratio would remain constant.
Not necessarily, other things can become cheaper, while housing become more expensive, leaving incomes the same. I'm claiming that houses, education, and healthcare have become more expensive relative to other things, which is not "inflation". Inflation is defined as the price of everything going up. An example of something that is a lot a lot cheaper: computers.
Renting is cheaper in the short term, in the long term you never build up any equity
You can build up equity when renting by buying stocks with the money you save from not buying a house.