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Updated about 8 years ago on . Most recent reply

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Vitaliy Merkulov
  • Property Manager
  • Sacramento, CA
33
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121
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Do bad tenants cause higher rent prices?

Vitaliy Merkulov
  • Property Manager
  • Sacramento, CA
Posted

A lot of people are saying that the reason why the rent prices are going up so much is because there is too much demand and not enough rental units available. 

But could bad tenants also contribute to the rent spikes?

According to NARPM 2017 report, the most requested service from landlords is tenant screening

Do any of you know any statistics about the damage that bad tenants cause landlords each year? Or any way to track down if bad tenants, and new laws that protect bad tenants maybe contribute to landlords raising the rent prices?

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Every aspect of the business impacts on rental rates. Bad tenants result in higher legal costs, lost income, extended vacancies and higher damage so bad tenants wiyuld have a direct impact for many different reasons. Damage to units is not reported or recorded anywhere so not measured.

My opinion is that the more tenant friendly the rules the higher the rates but usually in the tenant friendly jurisdictions the government also tries to control the rents. The government knows protecting tenants drive up landlord costs and therefor rents should follow.

It is common knowledge that the rise of production costs translates into higher product pricing.

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