I have to raise the rent for our apartments.

[Last1Standing]

Due to the large increase in the value of homes and buildings, you may have considered selling the property, or at least looked into its value. What you decide to do depends on your goals. You're providing an important community service, so that's one goal that points to keeping the rents affordable for tenants while allowing you to make a reasonable profit. If you were to sell in order to take advantage of the increased value of the property, whoever buys it will probably be looking to make a bigger profit, such as by renovating the building and raising the rents much more. So it's both a financial and a moral question. At the very least, I would explain the reason for the increase to your tenants, which I'm sure you've done. The pipe debacle sounds like a nightmare!

[Submariner]

Originally Posted by Last1Standing

Due to the large increase in the value of homes and buildings, you may have considered selling the property, or at least looked into its value. What you decide to do depends on your goals. You're providing an important community service, so that's one goal that points to keeping the rents affordable for tenants while allowing you to make a reasonable profit. If you were to sell in order to take advantage of the increased value of the property, whoever buys it will probably be looking to make a bigger profit, such as by renovating the building and raising the rents much more. So it's both a financial and a moral question. At the very least, I would explain the reason for the increase to your tenants, which I'm sure you've done. The pipe debacle sounds like a nightmare!

A few months ago, I received a letter from a man who offered to meet with us to discuss a price for him to buy the building.

I did not respond to his letter.

I have no doubt that with the recent increases in property values we would see a massive profit if we were to sell now. That was not our motive for buying this building.

The property is entirely 'up-to-code' as we just got our Certificate of Occupancy in March 2020. I doubt if there are any further upgrades needed. I would assume that a new buyer would likely double or triple the rent levels.

If we were to sell, it would put us back into the position we were in in 2016, holding a big stack of money and wondering what to do with it.

I do not trust the stock market. I have no desire to put my money into the stock market.

By offering cheap apartments for low-income people, we feel that we are doing something relatively good for society.

It was not among our goals to make a profit.

I am a retired US service member, my pension is more than enough to support us. We are okay with living within our means.

[Last1Standing]

This makes good sense, Submariner. Thank you for what you're doing for the community. Too often profits takes precedence over basic needs like housing. There's a housing crisis across the country. Without your apartments, your tenants would have an even greater need for various forms of social assistance, which costs the public more in the end. Being a responsible landlord is a "public service" in both senses.

[Kiwiluver]

Sounds like Calais.

[Submariner]

Originally Posted by Kiwiluver

Sounds like Calais.

Old Town.

[CARas2020]

Originally Posted by Submariner

A few months ago, I received a letter from a man who offered to meet with us to discuss a price for him to buy the building.

I did not respond to his letter.

I have no doubt that with the recent increases in property values we would see a massive profit if we were to sell now. That was not our motive for buying this building.

The property is entirely 'up-to-code' as we just got our Certificate of Occupancy in March 2020. I doubt if there are any further upgrades needed. I would assume that a new buyer would likely double or triple the rent levels.

If we were to sell, it would put us back into the position we were in in 2016, holding a big stack of money and wondering what to do with it.

I do not trust the stock market. I have no desire to put my money into the stock market.

By offering cheap apartments for low-income people, we feel that we are doing something relatively good for society.

It was not among our goals to make a profit.

I am a retired US service member, my pension is more than enough to support us. We are okay with living within our means.

You are a good guy!!! Do your tenants have leases or month to month. I don't know if you can raise anything if it is a lease. We tend to stay in places for long periods of time. We rented one place for 9 years and the landlord(he was a bit of a slumlord) only raised our rent once. We only moved because I was having a baby.

The amount you are raising seems to be reasonable. Good luck and Happy Holidays!!

[Submariner]

Originally Posted by CARas2020

You are a good guy!!! Do your tenants have leases or month to month. I don't know if you can raise anything if it is a lease. We tend to stay in places for long periods of time. We rented one place for 9 years and the landlord(he was a bit of a slumlord) only raised our rent once. We only moved because I was having a baby.

The amount you are raising seems to be reasonable. Good luck and Happy Holidays!!

These are six-month leases that roll over into month to month.

From now on each new tenant will be paying $500 a month.

[citychik]

Originally Posted by daxbr

If your renters complain, tell them to come to Mexico. 2 top floor penthouse, 110m2 2 bed/bath with walking distance to downtown. I pay $110 a month altho I had to remodel the whole thing before moving in.

Do you mean the country of Mexico? Just wondering because this is the Maine forum and there is a town called Mexico in Maine.

[Submariner]

In the last month, we have seen three tenants leave. The apartments were left filled with stuff [furniture, dirty dishes, freezer-burnt food in the frigs, dirty clothing, etc]. We have cleaned out those apartments. The clothing has been laundered and donated to a church thrift shop. The dishes have been cleaned [I make them available to new tenants]. We have installed deadbolts on the doors and re-keyed them. One of the doors is a bit funky, examining it closely we noticed the door frame is not square. The top of the door frame is narrower than the bottom of the door frame, so we are trying to figure out how to fix that issue.

Two of these vacant apartments have been filled with new tenants at $500 a month.

The building has a laundry room with two washers and two dryers. One of the dryers has died, an appliance repair man looked at it and said that its repair would cost more than buying a new one. I called the appliance store where we got it. Their records show we bought these machines in 2018, but there is no warranty. I am shocked at the price of a new dryer nearly $1,000.