Should Landlords Feel Guilty About Raising Rent Prices?
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How many dislikes did this video get?
The caller does feel guilty which is what prompted the call. You don't have to raise rent to cover the "overhead" of this problem which you stated was good for you. Just be honest and admit you love profits over people if you agree the logic of Dave here.
And again I say unto you, It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God.
Matthew 19:24
As the landlord. Has your overhead expenses doubled? No! You are not qualified to answer this question. Get another person with reason and sensitivity.
@@wretchedandexaltedpresents8924 Exactly. I've listened to Dave for years. I've read his multiple books. He is a bona fide scumbag and does great damage to the name of Jesus which he so desperately wants everyone to think he actually loves. Truth is, he loves money. Period.
I have a friend who owns about 12 homes and rents them out. He’s been doing it for years. He’s NOT a Christian but he still refuses to raise rent on any of his homes. He’s about to retire and is very well off financially so he says it’s not about the money for him. But to each his own.
Thank you - this isn't a religious question; it's a business situation and each landlord is different.
That’s great. I also think it should illegal for one person to own 12 homes.
Nice! Must be a great feeling to be getting ready to retire and have no financial worries.
It's almost like he has more moral and ethical judgment than "christian" landlords
If it’s not about money to him then why does he even own them lol
I feel the same as this caller. I don’t raise rent very often or by a lot unless my expenses go up. Others tell me I’m crazy for not raising the rent every year but I sleep better at night.
I’m a landlord and I don’t raise rents very often and not by much either but that’s because I want to keep the tenants happy. Not because I’m obliged to fund their lifestyle
Same here 💯
Your crazy and have lost value and efficiency each year
@@SD-ip2wb why would you feel the need to keep your tenants happy that’s such an off statement I doubt you own your own home🤣
@@coreym846 i doubt you do
Wow. This guy is a real tool, out here twisting up these scriptures. I’m a landlord and if I can afford to keep the rent stable on one property, he certainly can. In my particular situation, I’m already making a profit so raising the rent would be pure greed.
Bless you
Gotta remember that one of the best selling real estate books is rich dad poor dad where the teaching that “greed is good” is a pretty big theme.
At $350 a month for rent on a house I'm only netting $180 a month.
I hear you. My property renta for 1k but the first 325 goes to property tax and i pay income tax on it too even though I put it on the mortgage. Don't say i will see it later bc i know that. Never the principal, I will need to live off the rent when i am old and sick. ( im already sick)
Exactly. Raising the rent to keep up with taxes and maintenance expenses are normal, but anything beyond that is pure greed.
There's also the consideration that raising rents might make them move, then you get a worse tenant.
A stable, paying tenant, is often worth more than the potential increase in cash flow.
Sure
Say it loudddd
Not really. Good tenants usually have more money
Also, if you need 1 or 2 months to get a new tenant, it may not be worth a 15% increase
@@austinreeves5221 No, that is rubbish. Good tenants have good attitude, not necessarily more money. And more money (think rich kid, who lives off Daddy's dime) does not necessarily respect anyone else's property.
I treated every rental as if it was my own (ie no damaged, cleaned, tended garden). So much so, when last landlord wanted to raise the rent, the managing agents bent over backwards to try to get me into another property. Looked after the place, paid on time, I was gold. But broke due to a set of life circumstances that put me in the hole.
Raising rent is fine but the rate in which rent is going up is making housing a luxury now.
Housing IS a luxury now. God help those who just squeak by every month, I bet there's a significant percentage of renters that do.
My tenants told me that some homeless people in a car broke down in front of the house, they ended up literally living in their car in front of the house for three days or so… at some point, the police showed up and told my tenant that they would fine them! My tenants, that is. To be clear.
@@yarrdayarrdayarrda yes, we have an increasing problem with homelessness in my area due to a combination of tyranny and beast system induced inflated housing costs
lol
Expecting to have your own private home (not shared with extended family) IS a luxury. To expect that on a low income is absurd.
I remember when I rented and renewed my lease, my landlord raised my rent $15 a month because his taxes went up that much. THAT is an honest landlord, who truly raised rent to cover expenses and nothing more
You have described a sap.
@@paulk9985 no
I mean you're still paying his mortgage. You didn't sign the bank loan that he applied for. So why would you have to pay for increased cost? It just means you can no longer afford it and have to sell
@@jermainemyrn19 lol, ok.
In what universe is an increased tax bill the only increased expense a landlord faces? Even just within housing, labor costs and materials on any current or future repairs are going up most of the time. And why limit consideration only to directly housing-related expenses? If food prices go up, well, landlords have to eat like everyone else does.
I can understand having to raise the rent due to taxes and insurance, but the rent in Tampa has been raised 25% this year. That's pure greed
How much has insurance and property taxes gone up in Tampa recently? What about maintenance costs? Why don't you become a landlord and rent your stuff for real cheap? Let me know when I can get a cheap place from you since you're so nice.
@@networth00 exactly just let us exploit people in peace
@@networth00 Nowhere near 25 percent in the Tampa area.
@@shinikyokai8815 I live in Tampa. At January renewal my rent will increase from $1300 to $1746. That's over 25%. Actually, my rent won't increase cuz I'm moving out. Thankfully a friend will rent me their condo for cheaper. But I sure wouldn't be leaving if the increase was more reasonable.
@@mikki7384 Sucks dude, I know for a fact that landlord expenses haven't nearly increased that much to justify a 25-percent increase in rent. Rent got bumped up roughly that amount in Palm Beach as well.
Raise rent and add the value back into the property(regular updates, upkeep, maintenance)
Don’t ask for 2022 prices with a 1960s kitchen and bathroom.
Boom! Right on the money
Amen
To be fair the 1960s fridge is probably better built than the ones now lol but you are 100% correct
Too bad many landlords do not have this logic
The tenant would rather you not, considering daily expenses are through the roof
I was renting a few years ago and fell into hardship due to medical issues, I contacted my landlord and he wished me a speedy recovery and said I should rest after I told him I could not afford rent that month. That was the first of four years I rented from him. My landlord floated my December rent in 2017. I paid him in March 2018 for that months rent. Now, I own two homes, one of which I purchased from him.
He did later raise the rent up on that property by $375 a month, due to that fact I moved to another house he owned. He is a great person and I respect him for being honest and fair.
You are rare. Most people who fall behind never catch up. The vast majority. What works better is if the tenant offers something the landlord can keep as security in case they don't pay. Sort of a pawnbroker arrangement except no interest is charged. But the item is worth at least the value of the money being floated so it can be easily sold. If the selling price is more the extra should be given back to the tenant.
@@swilhelm3180 What kind of security would someone have? A comic book collection?
@@Nepthu Usually its their hobbies. Most people have interests. These interests have equipment or tools often. That's what I'm talking about. Its often hobby related. If they don't you can't do anything. The problem is most people will simply not pay if they don't have to. Like the vast majority. Wish it wasn't so. I wish landlords could collect a full months rent at least as security. This would help that tenant climb out of a financial disaster as there would be a much larger financial buffer. In some countries you have to pay several months rent. This forces people to live responsibly and save their money. Something unknown to many people today.
No landlord wants to have to sell tenants' stuff.
That's like a needle I'm a haystack... Other people they kick you out before you heal up
He completely sidestepped the question. Rents are being raised well past income increases. For him to say that it is your problem you can no longer afford my house is very telling. I am following the steps because they make fiscal sense but Dave's morality is well...
Minimum wage here in So Cal is between $14 and $16 an hour. Rent is astronomical!! It’s 1600 and up in most places
Supplies have gone up a ton in price. Landlords shouldn't have to eat that cost solo
@@hb1128 Agreed. Raising prices to keep up with inflation is fair. Tying it to the current real estate appreciation would be gouging
Thank you, I am glad someone else said it.
@@hb1128 Yes, because I am so sure that a raise in supply costs is worth an additional $2400 to $3600 a year increase.
I'm also a landlord. The way around this I found is to raise the rent. I tell my tenants be good to me, and i wil be good to them. Keep my house in good shape for the majority of the year. And December is free. Go have a nice Christmas with the family. Works great 👌 damages are minimum.
Pretty awesome deal. I’m definitely going to implement this.
First I just need to buy a house.
Wow that's really nice
Exactly I would do an inspection and if everything is good then yes one month off
Eh I wouldn’t give that much. I’d maybe give $500 off though lol
I would have loved renting from you when I had a young family.
I feel like as a secular capitalist, this is pretty solid advice.
As a Christian, I feel this is a pretty bad take.
its Greed that will hurt all !
Yep. If you wouldn’t raise your own rent, why raise your neighbor’s? Mark 12:31
Landlording for the most part is immoral
Dave Ramsey is not a Christian, he can call himself one all he wants, but this video proves he isn't.
bo ho.
@@mhballa5866 lol learn to spell
Dave is a criminal!
I haven’t raised my tenants rent in 10yrs. They are that awesome.
Rents here in PHX, 50%, $2000>>$3000 in one year
My home $300K>>$400K in one year
Thank you. I bet you are a good landlord too.
Yea this one thing I don’t like about Dave and a reason why people buy a house when they have debt. Can’t blame with rent is 2x a mortgage
Mikeg6niner - you are awesome!
@@edb484 buying a house comes with much more expenses and maintenance …..a big ticket item will put you further in the hole and demolarize you psychologically. That’s why he stands by that ideology .
We rent a 3 bedroom 900 sq foot apartment for $925 per month, no utilities included in Athens, Ohio. Mind you, jobs here pay $9-$15 per hour. Rent is going up to $1300 per month. We can’t afford that even with two incomes. We have three children. Now we are at the mercy to find a place $1000 or less just so we aren’t eating beans and rice for every meal. It’s beyond ridiculous. College kids are renting four bedroom homes and have to pay $600-$800 just for a bedroom and shared living spaces. It makes no sense to me. People are buying houses left and right with a $600 mortgage and renting it out for $2400+ per month and making $1800+ in profit monthly. It’s disgusting
$600 mortgage where at?? Everyone buying a house now has a mortgage of like $1300 or higher even if you put 20%. Only way you can have a mortgage of $600 is if you're buying a property under 100 thousand
Your numbers are way off. What mortgage is as cheap as you mentioned? I would like to know so I could buy it and get those same rents you mentioned. That’s just not reality.
And if that was the case why don’t you take advantage and buy a home? Live in it for a year rent that out and buy another? And continue to do that process for years? It’s available to those who work. Not McDonald’s but a real job that’s available here in America
Rent is a joke out here in California. It’s too much for the average people. $2000 for a one bedroom apartment!
I guarantee there are many jobs that pay over $15/hr there…
its a double edge sword b/c how many landlords lower the rent once inflation starts to go down, the answer is none.
Inflation 'going down' will only mean less inflation every year, so, no. We will never return to pre-pandemic prices and landlords will no lower rent and those who havent raised will do so in the future.
If your costs, not inflation rates, are going down, please tell me what state you live in bc I want to come there.
@lsshvs8415 that's what people tell themselves to keep them in the 'landlord' game, when in reality they know deep down its a scam, and they have to be as crude as possible to guilt trip people into succumbing to their inflated accommodation costs
@lsshvs8415 that's what people tell themselves to keep them in the 'landlord' game, when in reality they know deep down its a scam, and they have to be as crude as possible to guilt trip people into succumbing to their inflated accommodation costs
As a landlord, personally I do not feel the need to raise my rent if I am still making profits and the tenets are good. I rather leave profits on the table but keep a stable tenant that treats myself and the property with respect.
You’re a rarity sir.
Well said!!!👏
That’s actually a really good point. As a future landlord, I appreciate this comment!
If you like your current tenants and your expenses haven't gone up much, don't touch it and keep the good tenants. If your property taxes, insurance, etc. have gone up, increase rent the bare minimum to cover that. If you're just raising it because everyone else is so why not make even more money, then I hope everyone moves out and you can't replace them!
🙏🙏
You said it all. 👏
Well said. Don't be greedy.
Right on
I agree!
Proverbs 15:27
English Standard Version
27 Whoever is greedy for unjust gain troubles his own household,
but he who hates bribes will live.
I get raising rent to cover increased property taxes etc. no one should feel bad about that. However, Dave’s first answer is a perfect narcissistic answer, deflect the blame on to something else. “Everyone else is doing it so I can too” is a sad answer. I have no problem with having rental properties for additional income etc. but profit over humanity is one of the biggest problems in our society. Dave has been either misleading or happily in denial about how “easy it is” to simply move somewhere you can afford. I got sick of Dave’s half Christian approach so I haven’t listened in a while, I made a mistake coming back here.
The funny thing is that this isn’t even a Christian approach Dave Ramsey is taking lol
I agree with you Chris. Total prosperity evangelical.
It's totally disgusting. Capitalism and christianity are polar opposites and yet this guy doesn't feel bad about throwing families into the street. He's the camel that can't fit through the thimble and go into Heaven.
👍🏼👍🏼👍🏼👍🏼👍🏼💯💯💯💯
Well said. Let’s change our priorities within our country. Give back, live within our means, and see each other as our neighbors. This country has a sad habit of excessive consumerism we have lost sight of what is more important in life. Well I haven’t which is why comments such as yours is so important to read. There are many of us looking for change. Thank you
If there isn’t one already there’s about to be a housing crisis. Every rental house is going to have 2-3 families just to be able to cover rent.
I think in America we may have to resort to the living arrangements of the average European or Asian family in those respective areas. Living in the same home with several generations growing up in it. It seems to be the only way so many people will continue to even be able to afford housing
I agree that would be a solution; however, many rental and lease agreements specify the number of occupants allowed. There is obviously already a housing crisis given how many families are living in their cars or on the street. Many of them have at least one person working and still cannot afford a place to live.
Also, if they thought there was a birthing crisis over the past couple years, then it’s about to increase cause nobody can afford to have kids with these prices!
So? That's the norm for about three quarters of humanity. We've all been trying to live like kings. We deserve everything we get for that reason.
@@Growmap The point is to OWN with family ... not rent. When multiple people combine their money, owning is easy.
Rent is being raised way higher than just covering increasing costs.
Inflation is high that’s why
Landlords want a raise too 😁
Inflation is an excuse to charge more
inflation is an excuse. insurance went up. property taxes went up. repairs went up. court fees went up. ETC
@@JGormanVietitali Inflation is an excuse to charge more. Look it up, rent hikes aren't proportional to the increases in property taxes, insurance, etc. They are exponentially higher. Humans will always be greedy. Be honest with yourself.
Dave Ramsey is a 🤡
wah wah.
I’m starting to realize.
I’m not landlord but worked for some. In my opinion I think is better not to raise rent to the tenants that keep your place like it was theirs (As long as landlord’s cost hasn’t increased). Is so much more work when you have tenants moving in and out.
I often agree with Dave, but this was a really bad response from start to finish. Affordable housing is a necessity not a luxury and rent has absolutely skyrocketed everywhere. Where are these people supposed to go Antarctica? Rent is barely affordable everywhere especially if you're a single individual. And the other guy saying he'd give them some Dave Ramsey resources? And saying a rental isn't a home? This whole response is apathetic and completely out of touch.
Yep Dave is a real estate guy, messed up for sure.
This is why I can’t blame caller for buying a house when they have a small amount of debt. I’d rent is 1.5 to 2x a mortgage you can’t fault them
What is the landlord supposed to do? He's also having to pay a lot more for cost of maintenance on the property. He said in the question of the overhead is rising for him so raising the rent has sort of become a necessity.
As a single renter I agree that it sucks and it's hard but I get where the caller is coming from.
And I think that's why you can do this where you give them enough time and enough Grace so that you minimize the stress it puts on them and give them plenty of time to decide.
it's life. Things become more expensive. Landlords have expenses also. Taxes, insurance, repairs, maintenance all go up in price.
@@random-nz7dy If you're raising rent because your overhead increased, communicate that with your tenant. If a landlord raises rent $100 and says "my costs increased" with no elaboration, what he really means is "my desire for profit increased."
@@KamikazeCash What if I raise rents cause I want to become richer?
Lol, George telling a renter, "I'll hand them the Ramsey resources" doesn't help at all when you're raising rent, ridiculous.
It’s insulting to the renter. These guys are completely out of touch
🤣🤣🤣🤣
If you raise the rent without needing to and you only did it bc the people around you did, you're kind of being greedy in my opinion. It's one thing bc the landscapers and plumbers and other retainers want to charge more... But if all it is just the avg price...and they're in true hardship...That's just greed in my opinion. And if you're being greedy and that results in a family being kicked out and worse off than they were... That's not a conversation I want to have with God.
Again I tell you, it is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God.” Matthew 19:24
I’ve been weighing the options between investing in stocks or buying a piece of property and building a new rental home on it.
Your logic says that I have to make a little profit as possible on the rental property. Why shouldn’t I just invest in stocks then??
The fact is that when there are price fixes in real estate, as you seem to imply, people don’t build new homes anymore and housing becomes even more expensive.
@@andrewsmith8715 Yes, because it appears that the rich honor the almighty dollar above all else.
Just because a landlord doesn't have an immediate expense, doesn't mean the landlord doesn't have large expenses. Ever paid to replace a roof? Heat and air unit? Refrigerator stove and dishwasher package?
@@anniealexander3402 find quality instead of the cheapest option and you wont have large expenses that often. take care of things the correct way for the long haul, theyll take care of you.
I have amazing tenants that take great care of my house. I haven’t raised their rent and don’t plan to . I knock off $300 for December rent so there’s extra money for Christmas . I hope they never move out .
It makes you a bad Christian if you know the family can’t afford it and they have to move. Especially if you don’t need the money and you just want to make more money.
Dave isn't even a real Christian. He worships money first and foremost and he will have a rude awakening when he is judged.
@@andrewsmith8715 Spoiler, there is no judgment. Christianity is fake. Don't hold on to your life being miserable now but you will enjoy a great afterlife.
@@nigelstanford4 Even if you aren't a Christian but understand its tenants it should be obvious that Dave Ramsey is just using Christianity as a cloak to grow his business. Daves ideology and belief system run counter to Christian teachings.
@@andrewsmith8715 agree completely. He is a fake Christian. The rich will never enter the kingdom of heaven.
That depends on your intentions when you started the business. Maybe the owner started the realestate business to make money. Not everyone provides subsidized housing. Most real jobs give annual raises.
I rent. I understand prices need to be increased now and then- so rents have to sometimes be increased. What I wish is landlords would just admit that renting is their business - I have had several say they do it to benefit the community. No you don't. It is your way of making money!
@ Jil Gott.."renting is a business," Duh 🙄
I know that and you know that but I have heard several landlords say it is a service they do for the community as if they were such wonderful people making sacrifices. Instead, they are making a living, building wealth. More power to them just get down from the high horse
They are just trying to build wealth and it's not as easy as it sounds especially being a landlord. I would recommend looking into getting a duplex
Of course it's a business.
@@kyzerw3816 Building wealth, what has God said about that? Does Ramsey or anyone even pay attention to all the warnings in the Bible?
You have to make a living but you don't have to make a killing.
Everybody is trying to make a killing. If you want to do the Christian thing then stick to scripture. It's ok if you want to follow the economic standards of your community but don't try to compromise the scripture.
Well said!
@@stephanied.k.3589 so you’ve never accepted a raise at your job?
@@jeremyjeremy8795 False equivalency
@@jeremyjeremy8795 Yes, but the company that I worked for used the community prevailing wage system to determine annual wages and not Christian scripture. If you are an "inn keeper" and start following scripture you might end up giving a struggling family free room and board at the inn.
Dave, I started doing your steps, a guy in 17k student debt who paid it all off. It isn’t till now that cost of living is going up am I having trouble putting money down to pay of my other debt. After seeing this video, I consider you the biggest hypocrite out there.
How does this make him a hypocrite?
I have lost so much respect for him the past few years... I bet he still thinks we should put 20% down, 15 yr fixed at less than 1/4 of our take home pay... well... guess we will never be able to do that if the median home is $400k and appreciating every year
@@ryanthepianoman27 re-read
Amen!
why are the people who call themselves Christian the least christ like?
Good Business can be led by greedy people. It is impossible to both maximize profits AND be philanthropic/ Altruistic on the same scale. They take from the same resources.
Think the less I pay my workers the more I can pay myself/ share holders.
Some walk the walk and don't brag about their kindness towards others. Others just talk the talk, while doing what benefits them.
He is basically saying don't worry about the tenant 😭
Thanks for all the likes 😊
It's not his responsibility to "worry" about the tenant. He's not family. Does any other business worry about your welfare before asking you to pay for what you've CHOSEN to buy? How is your financial security not your own concern, yet you no doubt expect others to manage their own finances (eg your landlord)?
People shouldn't benefit off of human shelter. It's a basic right.
The issue is he’s trying to represent Christ with an answer that is not Christ-like
Unfortunately, shelter is not a right. Tell it to the people in Calcutta. You can only saythat here bc of the American government
I see why church attendance has went down over the years. Its not a lifestyle, it’s been reduced to a hustle.
...that and the pastors are getting tax free wealth from the tithes and not helping the people who need help. I stopped going years ago, but still tithe...to people who need the help and all them its from a God who has not forgotten them. I do not want any glory.
Read the New Testament. One man pastor is not biblical. Tithes should not go toward church buildings because we NO LONGER have a physical ‘temple’ WE are the temple of the Holy Spirit! Our bodies! Each should use their gift of the Holy Spirit. Not sit quietly in a pew for an hour. And call it ‘church’. Church is the body of Christ. Loving one another is hard. But through Christ He will help us. The Bible says they will know we are followers of Christ if we love one another. Gather in a park, a house, a car, someone’s backyard, a garage etc no special building needed, no one pastor, there should be several elders that are overhead. Even Paul didn’t get paid, he said he labored day and night to not burden the church of God!
My landlord decided to raise their rent to an absurd price and now they're losing renters.
Rent has increased in my area 40% in the past 18 months. Seniors who sold their homes several decades ago can’t afford that steep increase for 1970 un-renovated apartments. Many elderly neighbors had to move to less desirable areas, which is sad. Many single seniors don’t desire a home and that expense. Been there, done that.
Horrible take. My house payment is $1080 a month. There are homes in my neighborhood that are SMALLER than mine where landlords are charging $1800 a month to rent the place. That's almost twice the price.
My tenant recently passed away and we barely raised the rent in the years he lived in our rental home.
The home was trashed and cost us thousands to repair. We wish we raised the rent accordingly.
Landlords are becoming pure evil fascists! Greedy gouging criminals!
@@apartment-gouginglandlord-8775 😂You must be a tenant....
@@jcvchristianson1161 You must be a slumlord.
@@apartment-gouginglandlord-8775 They can't be both. Make up your mind.
It’s amazing how destructive some tenants can be. Some tenants carry a lot of jealousy, animosity and rage.
"Balance your faith and your business practices"
So, compromise your faith to make some profit? Doesn't sound very Christian like, Dave! 🤔
Jesus didn’t really take kindly to those money lenders, did he?
Faith Is the balance for business. It is the pillar. Hence business is based on faith. Without faith business becomes based on greed and fear.
So to say balance your faith and your business practices is to promote the practice of duality as it is attempted to isolate the two into different domains, when one comes from the other. Eitherways duality is forbidden by the Most High for it attempts to make light of darkness
“It is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God.”
It is easier for you to make passive income as a landlord than hard labor, so why don't you become a landlord?
one of the most stupid bible verses.
Give the tenants plenty of notice and dont go crazy and raise it 500$ just because. If you put money in the property raise rent. If you want to fight inflation raise rent. Don’t do it just for more money in your wallet with no benefit to the tenant. Communication is key.
I think the problem is it's easy as a tenant to say That increase was too high/ doesn't make sense.. when I actually have not sat down with an Excel sheet of repairs made, costs of supplies, costs of construction labor, transportation fees for new cement or gravel, new zoning laws, property taxes, fire/ flood insurance, lumber costs, on and on and on. I as a tenant can either do detailed research or accept it as face value. But I can't complain if I stay ignorant
@@hb1128 well I mean that’s not what I said but even then the opposite it’s easy as a landlord to make no improvements spend little to no money on maintenance and upkeep and raise the rent 20%. Even if you are spending that money that’s fine that you raise the rent but still communicating with the tenant is important.
@@bChipps yea that's fair. My boyfriend's place just went up by 300 and half the gym equipment is broken. The parking isn't enforced, etc
@@hb1128 Let's not forget that all of those expenses are tax deductible.
See the thing is people getting smarter. We use to rent and we decided to live in a camper with my wife and kids and we are happy. We have way more money, no electric, all solar. We answer to no one. I will never rent or buy a place. Living off the grid is the best.!
I would lower the rent 50 to 100 if they take a good care of the property.
Yeah, i'm done with this rental stuff. I may as well just buy a house at this point. A 3 bedroom house here costs 30%-40% less to pay a mortgage than it does to rent. It's been normal for 20 years, and then all of a sudden the market goes crazy here in 2020 and people keep coming here and buying houses
My most recent landlord set the expectation when I moved in that he always adjusted the rents on his places every two years. Set an expectation and then stick with it.
This is the best way.
And when the cost of living goes down does this landlord reduce rent? No? Of course he doesn't.
@@ISavant cost of living never goes down. Not sure what dimension you live in.
@@romariosmith422 best comment I’ve seen in a while 😂
@@ISavant The cost of living will never go down, you silly goose.
The other thing you have to factor in is how long, if the tenant leaves, it will take to find a new tenant. Let's say it's one month and rent is $1000/month. So there is a breakeven analysis in terms of the extra income of the rent increase vs lost rental income.
Exactly, at which monthly rate do you eliminate renter turnover? For some, having a tenant for years who is trouble-free may be worth more than extra money per month
@@Originalman144 Even if major repairs are not required many landlords will paint, maybe replace something they wouldn't if the same tenant stayed, possibly even replace some carpeting or flooring. It is less expensive to keep the same tenants for a long time than it is to change them.
So basically Dave is saying “Business first, faith when it’s convenient” 👎🏼
Business is business, doesn't matter if you're religious or not. Nobody invests their hard earned money to be a nice Christian. It's their job once you enter into that line of work. Do you want your boss not to give you a raise just because you're a Christian?
@@networth00 I'm pretty sure Jesus cares 100% in what you invest your money in and how you use it. In everything you do as a Christian it should be to honor God. So no, "business is not business" when you're a Christian. That's the whole point of trying to do the godly thing when we can, and try our best to not willingly fall short. We're in the world but not of it (John 17:14-16)
@@localblackman427 God helps those who help themselves.
@@networth00 Well that’s not quite what the Word of God says. For it is written:
“For he shall deliver the needy when he crieth; the poor also, and him that hath no helper.” (Psalm 72:12) 📖🔥🕊
Ye do err, not knowing the scriptures, nor the power of God.
I think your having a hard time understanding the English language and interpretation of speech.
I would like to see the dislikes on this TH-cam
I rent. My apartment is my home. It is not my property, but it is my home. To assert that one does not have a home unless they own property is unnecessarily callous. This segment was devoid of humanity.
Landlords love to pretend they are like you but most of them only see you as a cash cow and nothing more. They love to call themselves "housing providers". If they did not feel the compulsion to profit off of others need for a home maybe there would be more affordable houses for more people. This is classism plane and simple.
You said it very well. A home is a construct, it's where you make your life. A house or apartment block is a physical building. Dave's little assistant got it wrong.
@@matt497 pretty sure every single person starts out without a home, then they get skills, and can own a home. Where is the classism
I'm a landlord but my 1st place was a rental. It wasn't home. It was a place to stay while I was saving up to buy a home. I didn't hang pics all over the walls etc. My focus was working and saving for my home. That's what Dave means.
I have tenants spend hours and hours and hours decorating. Then I have to spend hours and hours and hours, puttying, sanding, primering, and painting. Just to find out they had time to put nail holes in my walls but never once cleaned the oven.
As a tenant, I tried to keep the place clean like I found it. If something spilled over in the oven, I cleaned it up. It grease splashed on the stove, I cleaned it up.
I have tenants move in junk and then can't move it when they move. It's just too much. So they leave it behind. I have to get movers and pay for disposal.
A deposit doesn't cover a repaint and it all comes out of my pocket or my free time. So rent has to be increased to be able to cover damage that I don't even think some tenants realise they are doing.
@@anniealexander9616 Great explanation
Because the cost of housing and rents is so high, long term renting has become the norm for many people. If you took Dave’s advice of a 15 year mortgage you would need to be earning a ton of money just to buy an average home.
Dave has put more people into poverty than likely helped with his terrible advice.
@@stevenshorten6184 Good point ☝️
Ending Property taxes will fix a lot of this
And we will all fix our own roads... SMH.
@@johnSmith-uz8nl tax GAS!!
@@ryanpotter5002 Oh... it is coming. But it will be a "federal" tax on gas, not state. Another analogy is... you have a BILLIONAIRE who only has electric cars / SUV but he owns the biggest home in town (like the size of three blocks). And you don't want him to pay any property taxes cause the poor people will pay through a gas tax. Again... SMH.
@@johnSmith-uz8nl It's a complex problem, Taxing the rich has not and will not fix the problem. House taxes in my area pay for schools, not sure what information you have.
@@ryanpotter5002 First of all, it is not that complex but the super rich have lobbied for decades to lower their taxes and tax the poor and middle class a unproportionate share. And you think property taxes is only for schools???? I guess you don't need a sewer system, or drainage system, sidewalks, lights, or a fire department or police department, or....
tenant: I can't afford the rent increase
I'm sorry to hear that. here's a book for budgeting
Extraordinarily insulting
I think that definitely crosses the business relationship line. There are not many people who I would be comfortable giving a book for budgeting maybe close family.
I would not give the book away for free.
Exactly. Learn how to be an adult and budget your finances.
@@ebutuoy5088 income is meant for more than just accommodation expenses. You should know this being a 'landlord'
I don't raise the rent on a current tenant who is taking care of things. If I need to, I raise it between tenants. I think your statement is a bit self-righteous and cruel, Dave.
Well if the pay rate is stagnant then something will eventually give if no one can afford “increasing rent” so everyone loses including the landlord if they can’t get tenants
The pay rate is not stagnant. This is not Cuba where the Government tells you your salary. Minimum wage is a starting salary and people can get promotions or get training to increase their skills and become more valuable to employers.
This is why it’s easier for a camel to get through the eye of a needle than a rich man getting into heaven
Yep.
Surely you realize that rents are raising way way faster than wages are.
I'm looking at a rent raise I can't afford. My income has not raised. So I deserve to be punished?
You are expected by the landlords to have simply made more money in anticipation of this. They don't expect themselves to have saved more money or not spent as lavishly as they did.
Yes.
Proven fact the higher the rents go the higher the homeless population goes just because your needing to raise the rent doesn't mean you have to raise it hundreds of dollars at once.
That’s actually true here in Phoenix, Arizona and the surrounding area. There didn’t use to be this many homeless people here ten years ago. I also work in mortgages and in Arizona property taxes haven’t gone up very much despite the house prices here (other states like Florida have seen large property tax increases). In most situations maybe a few hundred dollars a month more maximum for property taxes in AZ than they were a few years ago. Homeowners insurance and HOA fees haven’t changed much here either. So rents going up $500 a month + for pretty much everyone you could say it is greed. At the same time if a new tenant will pay a high amount no reason someone wouldn’t want to have them. But if you have an existing tenant who’s been a good tenant that is taking advantage of them in my opinion if you’re only raising rent because everyone else is. Really the higher rent prices should only be for incoming people to a property not someone who already lived there
They are confusing with terms house and home. This is not the home of the landlord because he's not living there.
5:23 my man said give them Total Money Makeover as you raise the rent 😂. Savage!
Savage? More like disgusting.
I owned rental property during 08 and beyond. Rents were low, apartment buildings were offering people to move in with very low deposits so in order to compete, that's what I did. Now, prices are high but if they go back down, I'm still on the hook to make those mortgage payments regardless.
You got scammed. Taking out a mortgage to invest is the prime scam
Ok I am all ok with land lord raising rents to cover his expenses but do not believe in landlords increasing rents 800 a month for one bedroom. Just wrong
When and where has this happened? What are the local maintenance fees for that area, property taxes, insurance?
As a tenant hearing this, this was hard to hear.
Yep and then is exactly why people go buy instead because it cheaper than renting. Dave is a real estate go so of course he says this.
Agreed. My rent was just raised by $50 a month. No real reason other than they can.
@@caroldieball4293 inflation has made everything go up. Their expenses probably increased by 10% or more. I’m sure they had a reason
It is hard to hear but it remains the truth. Everyone is a victim of circumstances (if that is a particular view you hold to, not saying it is) including the Landlord. They have costs that need to be covered and they are running a business. This caller (and Dave) were discussing how to balance morality with keeping pace, not how to extort tenants. Neither man wants people to face a hardship because of them but Tenants have a responsibility for themselves too, to earn money to pay for a home and to live below their means well enough to afford said accommodation. If somewhere you live becomes too expensive, please try negotiating with your Landlord but ultimately, you may have to seek other accommodation or take on extra work. It's an awful time for everyone right now, we are Tenants facing a huge rise in April and we make minimum wage. We make more cuts to our budget and focus on keeping a roof over our head and food on the table. Some people are definitely taking advantage of the situation (whom I greatly pity, they will have so much to answer for later) and some are wrestling with how best to care for themselves and others. I pray your housing situation is stable x
@@kaelaleedaley Yes everyone has to do what’s best for them In the end. Everyone in all the comments in this video are taken back by Dave’s comments is because he’s worth over $200m. This call shows a more real and different side of him
It is absolutely unchristian to raise rent. If you cant afford to keep the rental house, you can't afford to be a landlord, so go get a job. Screwing ppl over for more profit is very unchristian.
Disagree that it is unchristian to raise rent. By this logic, every business that raises prices is unchristian, which means that only non-christians should own businesses. It's not about screwing people as a landlord, it is about keeping up with the marketplace. Raising rents annually by a small amount, such as $10 a month for example, keeps up with the marketplace. Of course, this also assumes the landlord actually keeps up on the property like they should as well, which is another discussion...
It is very American; Capitalism is the American Way.
Rental homes in my area went from around 1800 to 2500 in a year due to a variety of factors. Property values also soared here like they did in so many other places. I think you can raise rental prices by at least your added expenses as a starting point and take it from there. If your tenants are great you can work with them and take a more gradual approach, say by adding 50-100 to the monthly rent year over year. On the other hand if your tenants are not so good this can be a perfect opportunity to get some new ones in there at a higher price point.
I own investment properties and the way I handle rent increases is to have an escalation clause in the lease agreement. This clause includes a table which details the amount the rent will go up each year for the next 5-7 years. All my residential properties are on a one year lease with an automatic renewal, so the tenant knows what the rent will be if they stay in the property. It makes raising the rent a smoother process as I send out a notification letter prior to the renewal date and reference the escalation clause.
One mistake novice landlords make is not to raise rents. It's an easy trap to fall into - you have a good tenant who pays on time and you want to keep them, so you keep rents flat for several years. The tenant becomes accustomed to this rent and it is quite a shock when the landlord has to increase rent because they didn't figure a major maintenance item (such as a new roof) into his calculations.
This is a GOOD IDEA!!! It is almost like a commercial lease that has all rental increases established. I think I will talk to my wife about this. At the same time... I would much rather charge a few hundred less and have my tenants stay longer. Missing one month of rent could kill the profits. I have a bunch of specialty clauses in my lease... one clause states I can raise rent any time but I can not raise rents more often then once every 12 months, so I don't need to raise the rents on their anniversary date.
We don’t have to play into others’ games just because the game is being played
Glad I always rented from atheists.
I have some renters that have been at me for 60 years. And other people that are my renters and have lived there for like 20 years says that they will live there for the rest of their lives
you are rare sir.
As a home owner I don’t think I could ever morally become a landlord. There are other ways to make money that allow me to sleep better at night. Just feels like you’re putting people in the poor house with these crazy rents so you can pay off a house you didn’t need in the first place. Idk.
They run mental gymnastics to make it ok.
Yeah I totally agree with you. I have a devout Christian friend whose becoming a landlord, and when I ask him about this topic he does some ambiguous flip flopping about how they should be grateful he’s providing them a home. People like that really enforce my belief that most Christians are more greedy and morally bankrupt than most atheists. Christianity seems like a big exclusion club now.
So basically it sounds like you’d never be able to own or run a business because you’d feel so guilty for charging enough to make a profit, cover expenses, put food on your table, ensure you have a buffer and have an ample amount to retire.
Cool. If everyone was as morally upstanding as you, no one would invest in property, and thus all today's renters would be homeless. Great plan ... and SO much more moral 🙄
@@pm2886 housing is a necessity. People will always build shelter because it’s necessary to sustain life. Not because it’s “great monetary investment.” That’s my a huge majority of housing is built to live in. Not to rent out. You’re definitely a landlord or want to be one if that’s your argument lol sucks when someone calls you out and it hurts your wittle feefees. Is everyone around you this smooth brained?
Oh, the guy that raised the rent says its ok to raise the rent and it doesn't make him a bad person? The simple fact is that your COST didn't go up significantly.
I think if I were a tenant barely scraping by, I'd much rather deal with the person who wrote the letter than with Dave.
What would be the factors making you scrape by? What choices have you made and what different choices could you make
@@SD-ip2wb - the military has done extensive IQ testing and found that around 10% of the population lacks the intelligence to even do the most basic of jobs. And there are millions more who can't do anything more than work a menial job. These would be the people I am referring to as having to scrape by.
@@desimo147 The solution would not be to raise the rent, but consider if low intelligence people should really live on their own. Our friends with children with special needs provide for them or they live in group homes. If someone is just "slow," perhaps they should join resources with others in their circumstances to have the living situation they can afford. If we make a rule that slow people must not see rents raised, who will rent to them?
1000%
Great input! 👍
I know an elderly person that has no known illnesses and has decided to rent at his age (over 70) instead of purchasing to forgo repairs ad upkeep. He keeps the property so nice the owners have stated they will move in if he ever decides to leave or you know...
For rent to double in one year? Just pure greed all around. You are blinded by that greed if you don't see that what's happening now is SICK!
"I say unto you, it is easier for a camel to fit through the eye of a needle than a rich man to enter the Kingdom of Heaven"
If most landlords only raised the rent to cover the small increases of doing business, then all would be well. The problem comes when they want to line their pockets too
You should buy some properties and rent them all out while attempting to just break even and not make any profits.
They're making a living! Why do expect landlords to provide you with housing for nil return? Do you regard them as charities? Owning investment property is BUSINESS, not charity. It feeds families, just like any other job or business.
hmmm, landlords seem to be more parasitic then normal lately, in the past year here middle tn i seen an increase in the homeless manly the eldery.
Well, they just didn't read the Ramsey book did they?
Ah yes Jesus said it is unchristian to not raise the rent so this family has to leave their home. One of the commandments is indeed Thall Shall not Lose Profit or something
Dave is the Joel Osteen of finance.
Haha very true
@DJR5280..If your statement is true, why do bother to listen to him?
@@foresight2pable I'll let you have fun thinking about an answer.
Wolves in sheep’s clothing
Beware
How does prices of everything go up but yet a livable wage isn’t given to anyone. Why?
I have been blessed this year. My rent has only gone up $13 a month.
Welcome to America. But this is why I believe education is worth every penny.
Livable wages are given to everyone who has learned a valuable skill. If a livable wage is not given to anyone, please explain how 65% of americans own their own home and retire at 65.
Raise them slightly like $50/month. It’s cheaper to keep existing tenants than to find new ones. If they complain/question, you have to say it point blank. You’ve got new expenses & your property tax is going up
Slightly? That's madness. You shouldn't be raising it at all. Greed all around.
Always remember Yeshua reigns supreme
My rent is going up so much. I'm definitely going to have to revisit my budget, and it's not going to be easy. Yet I know of others in the DFW area who had their rents raised even much more than mine was.
I considering moving from New York to Dallas area but recently I have been getting bad vibes from my research. It looks like DFW is getting a lot more expensive.
@@mattmasteringer4399 It definitely is getting a lot more expensive here. I think the cost of living everywhere in the US is increasing though, so it's hard to say how much more than the average it has increased here.
Stop moving here lol jk, everyone and their is moving here from Cali and NY. Dallas is getting crowded
ill probably be priced out of my apartment in Plano once my lease is up so i know the feels
@@PooterSmooch Yea man Plano and Frisco prices are wild
Well, this made it on TMZ
I was a tenant, payed rent by direct deposit always on time , fixed broken things , always quite . No kids to add wear and tear. The best thing my landlord did was to raise my rent by $300 more a month. Was the kick I needed to go purchase a house. Thank you Mr Landlord !
"When the young man heard this, he went away sad, because he had great wealth..."
Taxes, insurance and cost of renovations go up yearly, more so these past two years. No landlord should feel one should feel guilty for an exchange of goods and services.
Renovations are paid for with equity, not rent.
@@bkucenski It depends on how you treat your asset. If the asset is a 'dividend ' paying one. You seek profits from ongoing costs plus recovery of the capital invested. Plus, without the recovery of ongoing costs. Why would anyone invest in a property.
@@dhruvpandya4136 If you can't make a profit without screwing people over, you're in the wrong business. If your equity growth doesn't cover your property maintenance costs, you made a bad investment and no renter should subsidize your bad choices.
And a lot of people should not own properties and get real jobs instead. No one needs to financially struggle to make an owner financially comfortable.
Actually, just the past year; not so much the previous year. Let's go Brandon!
@@bkucenski Let's say I own a restaurant. I do renovation and maintenance. Would it be screwing people over if I recover renovation and maintenance. Real estate is a buisness and property is an asset. Profits are always generated when one mantains a profit over ongoing costs of an asset and the recovery of equity put in through rent, and growth in equity. Otherwise it is no longer a good asset. I don't care if you feel housing investment is not a valid/moral source of income, you are living in some weird utopia. Land has always been an asset. It will be treated as an industry. Plus, how do you think rent rates are decided. maintenance + taxes + rates derived from home loan or percentage value of equity value.
So this is a weird question but how long should you rent a house?
However long you need it for.
Until you are debt free, have a fully-funded emergency fund and save up 20% for your down payment
The problem is raising rent to this ridiculous amount if it’s to cover prices then of course don’t feel bad
I enjoy Dave's point of view on many topics. I don't agree with this one.
I've seen videos in the past of Dave raising rents on his properties displacing families.
I would say yes, but corporate owned properties are usually even worse.
Really awful...greedy investors.
Dave isn't a Christian
I agree! He is a lukewarmer fake Christian!
Sure he is. He's a prosperity gospel preacher.
Landlords do nothing good for society. It's a stupid idea.
Here it is now, a couple years later, rents have doubled, and more. Many people, single, families and elderly have become homeless due to raised rents. I'm embarrassed to listen to this answer. It feels like a way to justify greediness, while pretending you aren't greedy.
The cost of living is out of control, raising rent for the sake of raising rent if your costs dont increase... is greed!. If your renter has been good no reason to stick it to them. Americans are forgetting you are only off as good as your neighbor. If your neighbors are hurting you will soon be to.
You don't think a landlord has personal needs that need to be paid for from their investments? You don't work for free right? That's using your time as an asset.
@@ryanpotter5002 if the rent is coveting or above the mortgage, the landlord has nothing but upside. Please explain why should raise the rent. If the tenant have been there along time and is good. Please explain why raising the rent is beneficial.
@@dandaniels2868 Because things break and can cost large amounts of money. If the landlord doesn't have a large enough profit to have a large reserve then the items that need to be repaired cannot. Most landlords don't make some huge amount of profit which means they cannot save up for huge repairs. Plus if you invested time, and money I to an asset that is designed to give a good return on you efforts wouldn't you want to get the rewards?
@@ryanpotter5002 designed to give you a good return? NO. Being a landlord isn’t a legit way to make money, you grift off of a system that makes it impossible for poor people to gain equity in property. Rich get richer off the abuse of poor people. Landlords are so scummy
@@goomyworms3130 how's does renting a home from someone stop you from saving money and buying your own home one day?
The problem is rent prices are out of control need extremely strict rate control to stop this because majority of peoples paycheck goes to rent
Get another paycheck
@@richcreager7877 I was gonna say the exact same thing to landlords complaining about profits.
Yup and unfortunately there are slumlords who take advantage of situations as well
Housing costs should be 25% of your income. If you can't afford my rent, I don't need to reduce my rent, you need to increase your income.
@@derekd1510 preach it brother
The question is should landlords feel guilty about raising rent prices. My question is should our courts feel guilty about raising taxes on our homes or should insurance companies feel guilty about raising rental insurance. now answer that question then you make a choice if landlords should feel guilty. Now answer when a landlords has to fix the heat and air doesn't the tenants expect it to be fixed. When the floor has to be fixed or the sink or a water leak should the landlord be able to fix it. If the landlord can't make no money then they can't keep the rentals
Please explain how our courts raise taxes. Thank you.
@@DrSchor Were I live they did raise the land taxes
The next video recommendation for me after this one is titled "why your boss shouldn't give you a raise based on inflation" so that tells a lot about how he is viewing people at the bottom who might be struggling.