Raising Rent In Lakewood

[avromie7]

I do. Factoring in depreciation - it comes out as a wash. (only negative to reporting the depreciation is when I will sell the house)

You can easily come out ahead by deducting a portion of your property tax. It's not subject to the SALT cap and you can deduct even if you don't itemize.

Then deduct any real repairs and expenses, any expenses that add to the aesthetics (like landscaping, power washing, and even new upstairs windows), and any repairs that affect the whole house like a new roof.

[yelped]

I do. Factoring in depreciation - it comes out as a wash. (only negative to reporting the depreciation is when I will sell the house)

I had that hit once (they reclaim depreciation even if you didn't claim it recently and it is a primary residence (less than 5 years)(and NJ state adds it as income even though they don't recognize the depreciation in the first place)), the worst part is that the accountant didn't warn me about it, even though I asked him specifically. If I had known I would have raised funds in a different method.

[Sam Finkelstein]

In Ihr HaTorah? Can’t be…

[ae123]

Wait, you mean to tell me that people are reporting basement income on their tax returns?

Absolutely.

[ae123]

You can easily come out ahead by deducting a portion of your property tax. It's not subject to the SALT cap and you can deduct even if you don't itemize.
Then deduct any real repairs and expenses, any expenses that add to the aesthetics (like landscaping, power washing, and even new upstairs windows), and any repairs that affect the whole house like a new roof.

Do you mean come out ahead every year when filing taxes or when selling the house?

[avromie7]

Do you mean come out ahead every year when filing taxes or when selling the house?

If you can deduct enough expenses, you can save enough now to make up for the expense when you sell.

[jye]

Absolutely.

We report everything. If you have zero tax refund you might ok halachikly depending on circumstances.  If you file for any refund, even if it’s your own withholding, it  becomes  מטעה עכו״ם , not הפקעת הלוואתו and is a serious שאלה.

[Sam Finkelstein]

There’s also potential Chillul Hashem involved. RUOC had enough articles about sales tax in town.

[yesitsme]

for some its price gouging, unfair
for others its taxes + insurance + maintenance that went up even if you dont want to factor in the market price change which is nothing wrong doing so as its a pure business transaction

[JoeyShmoe]

for some its price gouging, unfair
for others its taxes + insurance + maintenance that went up even if you dont want to factor in the market price change which is nothing wrong doing so as its a pure business transaction

Why does a landlord looking to rent out his apartment have to explain his price? He can decide to rent out a 1.5 bedroom apt for $5k/mo and you can choose not to rent it. I don't get the issue.

Now, if you're talking about raising an actual tenant, that's a different story

[jye]

Now, if you're talking about raising an actual tenant, that's a different story

Raising the rent on existing tenants is the topic of this thread. On that note just a recent anecdote: a friend told me his brother has 8 kids and is well behind on tuition and bills. This brother helps him out a bit but he is struggling month to month. One source of his income fell behind on paying him, making a tough situation worse. He has a tenant with a successful online business who’s wealthy father in law is paying the rent.

His brother is still charging this tenant 13xx a month, with similar  apartments in the (hot) neighborhood going for over 1900. The yungerman in the basement down the block was just raised to 1900. My friend told his brother that is unfair to his own family to leave so much rent in the table. He went to one of the Roshei Yeshiva in town (not a posek) to ask if he should raise the rent. The Rosh Yeshiva told him that based of what the Chafetz Chaim writes he should leave the rent low and trust in Hashem to take care of his parnassa.

I don’t know if the Rosh Yeshiva was made aware of the fact that his kids schools aren’t  being paid and that the tenant is far more well off than the landlord, but that was the answer he was given.

[yelped]

Why did he ask a Rosh Yeshiva and not a Rav?

[jye]

Why did he ask a Rosh Yeshiva and not a Rav?

My guess is because he was being pushed to do it by others who want to improve his financial situation and didn’t really want to take the initiative. He has shaychus with this Rosh Yeshiva and wanted to hear he was supposed to do it hashkafically, not Halacha if he was going to make the move.

[yelped]

My guess is because he was being pushed to do it by others who want to improve his financial situation and didn’t really want to take the initiative. He has shaychus with this Rosh Yeshiva and wanted to hear he was supposed to do it hashkafically, not Halacha if he was going to make the move.

I guess the RY doesn't prescribe to "Yenem's Gashmius is mein Ruchniyus"...

[dm123]

I guess the RY doesn't prescribe to "Yenem's Gashmius is mein Ruchniyus"...

Well he was being asked about what level of Ruchni this guys brother should be on...

That being said this is why Poskim/Mashpi'im need to have that gefiel for what's behind a shaila.

[yesitsme]

Raising the rent on existing tenants is the topic of this thread. On that note just a recent anecdote: a friend told me his brother has 8 kids and is well behind on tuition and bills. This brother helps him out a bit but he is struggling month to month. One source of his income fell behind on paying him, making a tough situation worse. He has a tenant with a successful online business who’s wealthy father in law is paying the rent.

His brother is still charging this tenant 13xx a month, with similar  apartments in the (hot) neighborhood going for over 1900. The yungerman in the basement down the block was just raised to 1900. My friend told his brother that is unfair to his own family to leave so much rent in the table. He went to one of the Roshei Yeshiva in town (not a posek) to ask if he should raise the rent. The Rosh Yeshiva told him that based of what the Chafetz Chaim writes he should leave the rent low and trust in Hashem to take care of his parnassa.

I don’t know if the Rosh Yeshiva was made aware of the fact that his kids schools aren’t  being paid and that the tenant is far more well off than the landlord, but that was the answer he was given.

why does emotions play a role, there is a reason why women aren't supposed to be learning

[jye]

Well he was being asked about what level of Ruchni this guys brother should be on...

That being said this is why Poskim/Mashpi'im need to have that gefiel for what's behind a shaila.

It’s also how you ask. Not everyone knows how to read into “meg ich nemen a gerusha”

[jye]

Many of the tenants were couples who couldn't find a regular apartment. If there are enough for them to live in a regular one then the demand for temporary plummets.

Maybe also more temporaries entering the market?
https://www.wsj.com/articles/the-housing-slowdown-is-wreaking-havoc-on-the-short-term-rental-market-11670518837

[ae123]

Maybe also more temporaries entering the market?
https://www.wsj.com/articles/the-housing-slowdown-is-wreaking-havoc-on-the-short-term-rental-market-11670518837

It's behind a paywall.

[ae123]

If you can deduct enough expenses, you can save enough now to make up for the expense when you sell.

Would you be able to elaborate on this a bit or to link to somewhere that does?
I'd like to get a good understanding of this.
Thank you.