All Forum Posts by: Colton Clark

I have a tenant in my townhome in Salt Lake City that his one year lease is ending in June. He’s wanting to extent his lease to the end of Oct. He’s agreed to a 5%-10% rent increase to extend.

My concern is that if I agree, it will hurt me in Nov when trying to find new tenants and what price I can rent my townhouse since there is less demand. Hoping to get advise.

Any advise is much appreciated.

Thanks!

@Taylor L. thanks for the comment! I’m sure there are lots of things that effect demand. I feel like interest rates would be one of them. Right?

If rates go up someone who originally did qualify for a loan now may not. If I wanted to keep the same demand I feel like I’d have to lower my sale price for that type of person.

Overtime though there may be higher contributions to demand instead of rates (unless for some reason rates significantly increased which I doubt they’d do.)

@Michael J. Abel thanks for the comment. When you say cash flow I’m thinking we are talking about rent revenue vs all the cost that come along with a property. Is that right?

Does rental revenue not fluctuate as much as the home value? That would be great to know so that even if home values don’t increase or decrease the rental revenue would stay consistent.

@Jeremiah Maughan thanks for posting. I’m new to this so my apologies if I’ve missed something. But I don’t see the link for this meeting or a time for when this meeting will take place.

I would love to be there/online for this.

How awesome are rates right now?! Right?! I feel like the common theme is “take advantage now.”

My thought though as I was eating a bowl of Captain Crunch this morning was...

If I bought another property today with plans to sell in the future. If rates went up. Would that hurt my house sale value? It seems like if rates were higher when I was trying the sell, the buyer would be having to pay more in interest. With higher interest wouldn’t that mean less money in my pocket for me on the actual sale of my home?

History would probably show my house would still appreciate. But would higher rates when selling cut into that appreciation amount?

No one knows the future. Unfortunate there’s no magic crystal balls. I was hoping to hear if this concept is correct. Or am I missing something and that wouldn’t be a thing?

@Andy Jenkins if you share that info with me as well I’d really appreciate it.