Also you generally only realize any gain / loss when you sell property.
If the operating company goes bankrupt, it doesn't take down the real estate company with it. The real estate holding company just has to find a new tenant.
Yes, especially capital expenditures
I suggest you get another accountant. What happens is that the costs are spread over several years but you do deduce the costs.
In my experience, these landlords are amongst the most scummy to deal with -- unresponsive, inflexible and unrelenting on rent increases. They'll take months to fix anything, but damned if they won't raise your rent by the maximum legal amount at every opportunity, and there's very little room for negotiation. Given a choice between losing a good tenant and maybe getting more rent, they'll choose the latter. It's like having Comcast control your living situation.
The corporatization of our residential real estate market is just one more step toward the future predicted by Terry Gilliam in Brazil.
There is some institutional money chasing single-family market as well (AMH, ARPI, soon to be merged into a single entity, and a few others), we'll see how well that model scales to single family residences.
That sounds like a nightmare!
PS what do you mean maximum legal rent increase. I am in Colorado and as far as I know, the only limit on a rent increase is the market. Does SF have laws around this?
That said, it's interesting that you asked, because I lived in Colorado for years and the corporatization (and corresponding market behavior) of apartment managers there was as bad as any place I've been. If you stayed in the same complex for a few leases and weren't an aggressive negotiator, it was easy to end up paying more per month than someone who had moved in the week before. You had to move every year or two to keep your rent from skyrocketing.
It's one of the tangible reasons I prefer thoughtful systems of rent regulations (like SF's) -- it leads to more stable communities. When people have to move every year, nobody puts down roots or cares about their neighborhood.
Perhaps the city I am in (Boulder) has different characteristics, or I was lucky, or things have changed.
My neighbor is renting out a studio apartment.(1/4 of a basement. One room. $30 dollar parking tickets/ per night.) He's getting $2500 month. That was one, or two years ago. I don't want to guess what he's getting now. I know there's a procession of renters. I can usually hear the wife of one of the victims begging for baby sitting work from their balcony.
He weaseled the house from a very lonely lady. "I'll remodel the house, if you give me half ownership, and give me your portion in your will. She got cancer. He got complete control of the house, and her kids got nothing. Why did I out this guy; because the way he gets his money is immoral. Getting money this way is immoral. That it--it's just wrong.
As to alternatives, section 8 is closed. Even if you do get a voucher, and get put up in a ghetto, you need to sign the most one sided lease I have ever read, that's 43 pages long. Yes--43 pages of "can't do this". Down to a covered lid on your garbage can that has to reside only under your sink. Two, or three day notice if a relative wants to spend the night. Absolutely no work on your vechicle in the parking lot. I hope a lawyer eventually brings Marin Housing to their knees.
O.k. move! Many people in my county have been here a long time. The one, or two people who care if they are breathing live here. Some are just old.
O.k. Pitch a tent. Where? There not one campground that accepts full time campers. The minimum fee is, I believe $25/night--no shower, just a out house. Don't stay more that three days!
I don't have an answer. These towns weren't built to scale, and there's a lot of NIMBY's. It not just the NIMBY's, it's small town code enforcement squads that make remodeling a room very difficult/expensive. Plus, traffic on 101 has not improved.
I can't fight everything. My gripe is landlords whom are immoral. It's time to out them. It's time to call people out on their greedy behavior, in all aspects of life. I've never bought this, "If it's legal--I'll do it!".
I see you people daily, and don't like you. I see you in ties at work. I see you with a stethoscope around your neck. I see you going out of your way to screw someone. Someone usually with not much power.
You are not fooling anyone. We see whom you've become. Ever wonder why you are so lonely? Why people don't give you the respect you think you deserve?
Without getting to cynical, but why do you think these people don't get respect or are lonely? Most crooks I know have families and friends that love them and accept them for who they are. Being immoral is pretty acceptable for most people as long as the larger society doesn't penalise their dependants.
Which kid has a harder time in school, the one with a crook for a father, or the one without the new Nike's?
It seems to be a rehash of this: http://www.aei.org/publication/the-terrible-economic-burden-...
Unemployment is quite a bit more expensive to governments than subsidizing retail and commercial space. Buying land when it's very cheap and holding on to it forever, as part of the city's bylaws. And perhaps doing sponsorships deals with big business in the city, to generate additional revenue to support the properties.