April 25, 2007
A Bubble Sitter & Bitter Renter message to the desperate landlords ("Floplords") of America - You can't raise our rent (ha ha)
There are over 2 million vacant unwanted homes in America today. There's a 6% vacancy rate in apartments. There are millions of screwed desperate homedebtors ("Floplords" - hattip sac landing) desperately trying to find renters to cover (some of) their second home mortgages. And the housing-led economy is quickly going into the crapper.
If you try to raise our rent, there's millions of other places for us to go. You have no pricing power. And you don't set the rent - the market does.
Bitter Renters and Bubble Sitters rejoice. You have the power in America today. Enjoy it.
Good Time for Tenants - Real estate slump pushes house rents down
Many people are trying to hold onto houses they purchased as investments by becoming landlords. That has flooded the Northern San Joaquin Valley rental market with houses, pushing down rents and forcing landlords to compete for tenants.
Many rental properties originally were bought by speculators who got caught in the real estate downturn, explained Paula Leffler Zagaris, whose Liberty Property Management company manages 1,500 rental houses.
"They were gambling," Zagaris said of investors who intended to quickly sell — or "flip" — houses to cash in on rising property values. "Anybody who did that before October 2005 was a genius and made a lot of money. … But if they bought after that, they're stuck."