All Forum Posts by: Michael Calvey

TL;DR: Recent article suggests rent hikes aren't just about landlord greed - rising costs across the board are a major factor.

Just read an eye-opening article about the recent rent crisis.

It challenged my assumptions, so I thought I'd share the key points:

- Rents up 25% since 2020, but wages only 22% - ouch.
- 50% of renters now "rent-burdened" (>30% income on rent).
- Landlord costs skyrocketing: 
     - Insurance: +30% (thanks, climate change)
     - Utilities: +30%
     - Property taxes, materials, maintenance all up
     - Even lawn care and cleaning services cost more

The article argues these costs are being passed to tenants, not just padding profits. Interestingly, it cites data from Baselane, banking built for Landlords, showing a 30% increase in landlords' monthly expenses from 2022 to 2024. This kind of data gives us a more concrete picture of the situation.

Questions for discussion:
- Renters: Has your landlord mentioned any of these factors when raising rent?
- Landlords: Are these costs hitting you as hard as the article suggests?
- Everyone: What solutions do you see to make housing more affordable?

It got me thinking - how many of us might be unwitting Airbnb hosts?

The author shares a wild story about discovering his long-term tenant was secretly running an Airbnb out of his apartment. Even crazier, he found out a film crew had used his property for a shoot without his knowledge!

This raises some serious questions:

1.Have any of you experienced something similar with your tenants?
2. What precautions do you take to prevent unauthorized subletting?
3. How often do you inspect your properties, and what do you look for?
4. What legal recourse do landlords have in these situations?
5. For those running short term rentals, how do you handle guests who misuse your property (like the author's film set situation)?

This exact situation has been playing out on Twitter in recent weeks, with many 'business influencers' who jumped into the syndication space a few years ago facing backlash.

These syndicators promised seemingly guaranteed returns, much like a bond, downplaying the actual risks involved.

These GPs presented investment decks showing that a few small improvements would significantly increase property values, allowing them to refinance the deals, take the 'profits,' and return capital to the LPs.

In reality, as market conditions changed rapidly, these promises fell through. Many 'influencer' syndicators have not paid out distributions to their limited partners for over two years.

It's disheartening to see a lack of transparency and investigation into these funds.

LPs deserve clear communication and honesty from their GPs.

When things go wrong, the last thing they need is intimidation and legal threats.

Hey Marc - Have you tried using the Agent Finder Tool to find an investor friendly agent in that area?

I'd recommend using the Agent Finder tool to connect you with an investor friendly agent. Its the easiest way to find an agent that is trusted and vetted by BiggerPockets. 

Hey Tye, The two softwares are different. While both have similar features, many investors use RentRedi and Stessa for different purposes. 

Here's the good news for you. As a Pro Members of BiggerPockets, you get both Stessa and RentRedi are free....So I would definitely encourage you to become a Pro Member for these perks and more. 

https://www.biggerpockets.com/blog/pro-partners

@Derek Morrison I've got good news for ya! RentRedi is completely free to use for Pro Members. And so is Stessa. 

What I would suggest is signing up for a Pro Membership to BiggerPockets so that you can use both softwares for free. 

https://www.biggerpockets.com/blog/pro-partners

My oldest child is going to college next year in a town where I could buy a house for $160k. I've got the cash to buy it outright, then let him live there, rent out the other bedrooms to classmates, etc. And ideally sell it 4 years later.

If I can more or less count on the renting of additional bedrooms to cover the running costs of the house, I'm really only looking at taking a hit on the buying/selling costs - which SHOULD be lower than what it would cost to house him in dorms for 4 years.

I feel like this is pretty obvious and easy (not trying to make significant money here, just thinking I could save $10-$20k on housing costs over 4 years). What am i not thinking about?

You betcha Henry! This is exactly why we've worked to develop the Find a Property Manager service. 

To use it, just look under "Build Your Team" - Find a Property Manager - Then you can answer a couple of questions and be presented with options that fit your needs. Give it a try!

Or feel free to use the direct link to find a short term rental property manager. 

The trusted and vetted investor friendly agents that are available to you with the Find an Agent tool in the nav bar, is the best way to go. 

You'll be able to connect directly with agents who work with investors and specialize in multifamily properties.