From: richard@kunikpok.UUCP (rich)
Newsgroups: austin.general
Subject: Re: Rent Increases - any control ??
Date: Fri, 02 Oct 92 12:21:53 CDT
Organization: Kunikpok Kennels and Komputers (Pet Project)

lenny@icus.ICUS.COM (Lenny Tropiano) writes:

> In article <1992Oct1.023726.14084@awdprime.austin.ibm.com> mbjr@austin.ibm.co
> writes:
> >
> >	My landlord (Tallwood Apartments, avoid it) has just raised
> >the rent again, in about 5 months. (This time, about 12%. )
> >
> 
> >	Is there some kind of agency I could appeal to ? [Leaving,
> >though desirable, is NOT presently an option].
> 
> Well no, unfortunately they seem to like to price fix, since most of the
> places here in Austin are filled up.  98-100% occupied with people on the
> waiting list that are willing to pay that rent.  Maybe you can bargain,
> since it costs them money to get an apartment ready, and it will be
> vacant for a few days (and there are no guarantees that someone will rent
> it...) tell them you're leaving because of the high rent... maybe they
> can work with you.  You can always say, "I've changed my mind, under
> protest, and will sign another lease..."
> 
> -L.

Hmm, since this "ISN'T" NYC, rent controls are voted on with your feet.
This is both good and bad.

1.  You can find a place to live, but i9t may cost through the nose.
or
2.  You can pay $350/month for life on an apartment that you can't find.

Which do you prefer?

On the otherhand, for the last 6 years, Austin has had a very low average 
rent.  The occupency rate was as low as 50-65% at some places, and so 
rents were low.  Now that Austin has more of that HIGH TECH industry, and 
lots of new people to work at these places, Occupency rates are nearing 
100%.  Economic theory tells us that as supply for free apartments 
dwindles, the price will skyrocket.  Thus, it becomes more profitable to 
own apartments again.  Since they lost their shirts in the late 80's this 
means they break even.  In a few months, someone with a little cash will 
build some more apartments since they can rent them for only $650.00/Mo 
and be competetive.  Then, as more people do this, rents will lower a 
little.  But, that curve is going to lag by a couple of years.  And if 
the local economy continues to do better, and attract more people than 
there are apartments, then the prices will climb further still.  So,
what can you do about it?  

1.  Move to a depressed area of the country. ( good luck finding that 
dream job though:-)
2.  Buy a house.  (tough on someone with no cash)
3.  Get a roommate or a spouse.  Sharing experiences allows you to more 
than compensate for the price hikes.
4.  Move further out of town/Rent a duplex/rent a house.
5.  Not always recommended, move in with your SO:-)
6.  Scream at the Apartment manager.  It won't help, but you should feel 
better afterwards.
7.  Call Mom and Dad.  Tell them that yours ends just came and left, and 
to please send more money.

So, what is the good news in all of this?  

Those of us who already own our homes are the big winners.  See when
All the apartments are full, your apartment dwellers will say, "I'm outa 
here, honey, lets buy us a house".  House prices will go up in sympathy 
with the rent prices.  I know of one guy that was just tired of having a 
house.  He had a for sale sign on it for a year, looking for "more than 
it was worth", and no offers came his way.  No offers that is, until 
someone came to him and offered him $500 less than what he asked.  He 
says to himself, "Hmmmm." and went to find out what it cost to live in a 
decent apartment.  He discovered that it would cost him almost as much as 
the mortgage, and no Tax incentives.  He declined the offer, and pulled 
the sign from the front of the house.  Thus, the price of homes continues 
to climb.

So, either you are shelling out to someone else that controls the price, 
or you are locked in.  As I see it, $660 is the mortgage of a $60,000
house.  What are your limits?

Richard Hasting, taking the day off and needing it.

Richard Hasting, Computer Literacy 2000 Project Office
richard@kunikpok.uucp
"When all is said and done, more is said than done."
Newsgroups: austin.general