Not so long ago, we declared the extinction of the mom-and-pop landlord. We did so based on the luxuryification of rental buildings (think condo-quality “Class A” rental inventory) and the high cost of maintaining them competitively. What we’re now seeing is a swath of “Class B” rental buildings looking to leverage this strong rental market. They’re doing so by upgrading themselves, either via new kitchens and bathrooms, new floors, or even new gyms … anything to be able to justify an uptick in rent.
Such upticks come to the tune of 25% or higher rent increases, enough to make any renter look to leave. Instead, we’re seeing tenants foregoing the hassle of moving and accepting this increase while grumbling all the way to the bank. If you’re faced with this predicament, think about whether the transaction costs of a potential move are worth taking on (movers, broker’s fee, ancillary set-up fees and time) before you jump ship.
