February 21, 2023
Chris Kornelis of the Wall Street Journal writes about the current market creating temptations to turn homes into rental properties instead of selling them. In the article, he speaks with landlords and rental industry experts from throughout the country about the biggest mistakes first-time and veteran landlords make when they get into the rental-property business. Among those interviewed, was our very own Tia Politi, ORHA Board President. She offers her insights about where many housing providers go wrong.
"It’s also important to understand that what a property owner can charge for rent isn’t dependent upon costs—that is, there is no guarantee that a landlord will be able to charge tenants enough to cover both the monthly costs on the property and needed repairs and home improvements.
Tia Politi, who owns multiple rental units with her husband near Eugene, Ore., and is the president of the Oregon Rental Housing Association, says first-time landlords will sometimes tell her: This is what my mortgage is and my taxes and insurance, so this is what I want you to charge for rent.
“Well, I’m sorry. Rents are not dependent upon what your costs are,” she says. “They’re dependent on what the market will bear.”
You can read more about on the Wall Street Journal.