And there should be a law forcing landlords to offer a rent-to-own option.
I generally don’t think there should be laws forcing individual citizens to sell anything they own. I could however be on board with government regulated and incentivized rent-to-own programs.
I understand what you’re saying and I did feel weird typing that since I know there must be a better alternative.
Something has to give, though. In late June I had to leave a place I rented for 19 years and I’m still stunned. Idk how much of the house’s value we paid in rent, but it was a lot. And it wasn’t even a large home, just a small cabin few people would wish to live in. But there was nothing stopping the landlord from kicking us to the curb.
Idk how much of the house’s value we paid in rent, but it was a lot.
Definitely 80-100% of it.
Almost 20 years of renting, if all of that including the (almost certain) increases had been applied to the original mortgage you’d likely own it by now.
They charge you everything they’re charged plus add on a profit margin. That profit margin if applied to principle on a standard 30 year mortgage would’ve paid it off earlier.
Honestly, I don’t feel like landlords should even exist
Sure, maybe renting can still exist, as long as it’s cheaper and government run or something. I would much much rather give my rent to the government than some rich fuck who literally gets my money for free
Whether or not they should exist is basically irrelevant. They do and that’s not something we’re likely to see change. Also, sometimes renting is a better fit for people at certain phases of their life.
In exchange for a reasonable rent, a landlord is responsible for ensuring that the building is kept safe and well maintained and that any necessary repairs happen as quickly as is reasonably possible. What I’d really like to see is landlords being held accountable for failing to do so.
Owner Occupancy credit against property taxes. Sometimes called a “homestead exemption”.
Basically, if you live in a house you own, you pay a vastly lower property tax rate. If you don’t live in a house you own, you pay a vastly higher property tax rate.
When we establish this, “landlords” stop “renting” and become private mortgage lenders. They sell their homes to their former tenants, or issue “land contracts” (rent-to-own arrangements), and enjoy the lower tax rate on the property.
If they foreclose or evict, they pay the higher tax rate until they get a new “buyer”.
I like the general idea but how does rent to own work for multi family properties, especially in larger apartment buildings? I know condos exist already but that requires an HOA or something similar to provide upkeep for the building/property. I also wouldn’t want to completely deincentivize renting because there are situations where it’s a better fit for people as long as they are not getting gouged or kicked out needlessly.
Maybe instead of a credit for occupying a property you own, add a tax on income from rental properties that is earmarked for the kind of infrastructure that an area needs to accommodate a growing population including mass transit. There would have to be some protections in place to prevent landlords from passing that cost directly to tenants but I’m not smart enough to know how to do that.
Alongside that, offer a tax credit for rent to own arrangements that starts small and gets larger as the tenant gets closer to owning the property. Successful transfer of ownership gets the original owner a credit equal to the difference between the taxes paid and credits received plus interest and the new owner gets a reduced property tax rate for their first year of ownership.
I like the general idea but how does rent to own work for multi family properties, especially in larger apartment buildings?
You get the reduced tax rate if you live inside the building. If the owner of an apartment building has to live inside the apartment building then the overall quality of the facilities is going to be better maintained.
That does nothing to answer the question of how a single building with multiple occupied units could be converted into a rent to own property.
In most states that have a program like this the property tax exemption is laughable compared to the average annual income from owning an apartment building with 10+ units. For example, in California you get $7000 towards your annual property taxes for living on property. The average rent for an apartment in San Francisco is right around $3500/month.
No. It’s extremely uncommon but the comment that started this discussion mentioned forcing landlords to adopt rent to own programs. Got me thinking about how cool it would be if that was a viable option.
I agree with everything you said except for this:
I generally don’t think there should be laws forcing individual citizens to sell anything they own. I could however be on board with government regulated and incentivized rent-to-own programs.
I understand what you’re saying and I did feel weird typing that since I know there must be a better alternative.
Something has to give, though. In late June I had to leave a place I rented for 19 years and I’m still stunned. Idk how much of the house’s value we paid in rent, but it was a lot. And it wasn’t even a large home, just a small cabin few people would wish to live in. But there was nothing stopping the landlord from kicking us to the curb.
Definitely 80-100% of it.
Almost 20 years of renting, if all of that including the (almost certain) increases had been applied to the original mortgage you’d likely own it by now.
They charge you everything they’re charged plus add on a profit margin. That profit margin if applied to principle on a standard 30 year mortgage would’ve paid it off earlier.
Yeah, and it sucks, but what can I do but move on :/
Honestly, I don’t feel like landlords should even exist
Sure, maybe renting can still exist, as long as it’s cheaper and government run or something. I would much much rather give my rent to the government than some rich fuck who literally gets my money for free
Whether or not they should exist is basically irrelevant. They do and that’s not something we’re likely to see change. Also, sometimes renting is a better fit for people at certain phases of their life.
In exchange for a reasonable rent, a landlord is responsible for ensuring that the building is kept safe and well maintained and that any necessary repairs happen as quickly as is reasonably possible. What I’d really like to see is landlords being held accountable for failing to do so.
Owner Occupancy credit against property taxes. Sometimes called a “homestead exemption”.
Basically, if you live in a house you own, you pay a vastly lower property tax rate. If you don’t live in a house you own, you pay a vastly higher property tax rate.
When we establish this, “landlords” stop “renting” and become private mortgage lenders. They sell their homes to their former tenants, or issue “land contracts” (rent-to-own arrangements), and enjoy the lower tax rate on the property.
If they foreclose or evict, they pay the higher tax rate until they get a new “buyer”.
I like the general idea but how does rent to own work for multi family properties, especially in larger apartment buildings? I know condos exist already but that requires an HOA or something similar to provide upkeep for the building/property. I also wouldn’t want to completely deincentivize renting because there are situations where it’s a better fit for people as long as they are not getting gouged or kicked out needlessly.
Maybe instead of a credit for occupying a property you own, add a tax on income from rental properties that is earmarked for the kind of infrastructure that an area needs to accommodate a growing population including mass transit. There would have to be some protections in place to prevent landlords from passing that cost directly to tenants but I’m not smart enough to know how to do that.
Alongside that, offer a tax credit for rent to own arrangements that starts small and gets larger as the tenant gets closer to owning the property. Successful transfer of ownership gets the original owner a credit equal to the difference between the taxes paid and credits received plus interest and the new owner gets a reduced property tax rate for their first year of ownership.
You get the reduced tax rate if you live inside the building. If the owner of an apartment building has to live inside the apartment building then the overall quality of the facilities is going to be better maintained.
That does nothing to answer the question of how a single building with multiple occupied units could be converted into a rent to own property.
In most states that have a program like this the property tax exemption is laughable compared to the average annual income from owning an apartment building with 10+ units. For example, in California you get $7000 towards your annual property taxes for living on property. The average rent for an apartment in San Francisco is right around $3500/month.
Is rent to own that common? Is it a viable option? I have heard of owner financing situations, but they are generally looked down upon (risky).
No. It’s extremely uncommon but the comment that started this discussion mentioned forcing landlords to adopt rent to own programs. Got me thinking about how cool it would be if that was a viable option.
Owner financing is far less risky than renting from that same owner. For both the seller/lender/landlord and the buyer/borrower/tenant.