What is fair in this business?

[Maria Teo]

Hello BiggerPocket members,

I'm probably in the wrong business but does anyone suffer from landlord guilt?

I have a rent controlled building and petitioned to do a capital expense rent increase, which will raise the monthly rent by 10% over their base rent. I wasn't surprised to receive  tenant objections, but one thing a tenant said got to me: "Just because its legal doesn't mean its fair".

This person has lived in the unit 10+ year without any previous capex rent increase. White collar professional. I wouldn't knowingly impose an increase on someone who is fixed income, and of course tenants have the right to petition for hardship. 

Still it has me thinking, what is fair in this business especially since this business deals with something so personal as a person's home. And from a tenant's POV, its always I already pay you rent, why do you need more?

What helps you determine what is fair? When do you push to increase a return on investment and when you hold back?

[Nathan Gesner]

Quote from @Maria Teo:

I have a different perspective.

The median rent rate in the US has increased about 25% in the last ten years. The tenant has lived there for 10 years with no increase, but I bet his salary has gone up. I bet the price of a white-collar shirt went up, as well as the insurance on the nice car he drives or the cell phone he uses.

This is one of the many problems with rent control, welfare, etc. People are given a housing advantage, but they don't appreciate it. They want you to buy property and operate it at a loss so they can save money and live a better life than their peers.

I offer a product. People are free to use it or shop somewhere else. I don't lose sleep when they think my prices are too high because I know they will shop around and (a) find nothing, or (b) live in a cheaper place that is cheaper for a reason.