TOPIC: Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me.

Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50040

If our residents are at market rent. We do not increase if they sign 90 days out. If they sign 60 days out it goes up $25
30 days out it goes up $50.
We are 2 renewal incentives 90 days out 1 renewal incentive 60 days out and nothing 30 days out.
If they are not at market then we go to market.
  • Amber Daisy
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50041

What kind of incentives do you offer?
  • Jennifer Webster
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50042

Carpet cleaning, blind replacements, new kitchen or bath faucet. Or they can request something specific. Had one ask for new carpet we went up a $100 on her rent had another 1 that wanted a new dishwasher we went up $50 on hers
  • Amber Daisy
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50043

Unfortunately for a lot of us the increases aren’t an option. The cost of supplies, labor & taxes increased significantly this year. Our city didn’t have a problem increasing property taxes last year and in order to hire staff we have had to pay more per hour. Don’t forget that lumber alone has increased by a lot causing other suppliers to increase their parts. It’s a vicious cycle.
  • Lori Doles-Manges
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50044

Yes! We are here too. Everyone is moving from elsewhere and don’t bat an eye at paying $1600 for a 2 bedroom at a 17 year old property. Furthermore my company does not give any renewal bonuses so it doesn’t give onsite staff any incentive to try and keep a resident here.
  • Jonathan Weatherford
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50045

Why is it always the landlord/owner’s fault? I can only speak for myself, but property taxes have gone through the roof. So has property and health insurance costs.
  • Anonymous
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50046

I'm guessing you didn't read the email today from the COO of HD Supply. I will share it for you in full here... (please note: I don't use HD Supply so this in no way an endorsement or advertisement).

Dear Valued Customer,

We are proud to provide the service and support you require to operate your properties in a safe and effective manner. As your supplier, we think it is important to share key trends we are observing in the current market around product cost and availability. The insights below are from the manufacturer partners we work with, as well as publicly available data on raw materials provided by the US Bureau of Labor Statistics from the Producer Price Index Detailed Report dated May 2021.

* Cold Rolled Steel up 107% YOY — Used in Water Heaters, HVAC Equipment
* Polypropylene up 57% YOY — Used in Liners, PVC/CPVC Fittings, Plastics
* Copper up 58% since May 2020 — Used in Plumbing, Motors, Compressors

It is not just raw material pricing that is up. Crude petroleum is also up 185% since May 2020, which impacts energy and transportation costs. Transportation costs alone are up 7.3% from March 2020 to March 2021.

In addition, many of the products your business relies on are also impacted by manufacturing constraints. For example:

* Refrigerator inventory shortages are expected to continue into next year, driven by increased demand. We are sourcing additional private-brand options and inventory to help meet this challenge.
* Water heater supply is limited due to component and labor shortages. We have worked with our suppliers to secure large allocations to support your needs in Q3 and Q4.
* Severe pool chemical shortages are causing a spike in prices and reduced availability of alternate products. We expect these challenges to extend into 2022. We have secured market-leading allocations of liquid chlorine to act as an alternate pool sanitizer.

In order to keep your property stocked with the products you need, we recommend ordering ahead.

The good news is this: There is no other distributor better equipped to meet these challenges than HD Supply. Backed by the power of The Home Depot, we are working closely with our global network of suppliers to monitor market conditions, mitigate price increases, and secure the products you need. We also recognize that there may be unavoidable price increases or volatility in the market, and we are committed to communicating such updates as they materialize.

Please know our team of 12,000 Associates is fully committed to providing the products and services you need to safely operate your properties.

Regards,

Brad Paulsen
Chief Operating Officer, HD Supply
  • Anonymous
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50047

Agree, it hurts us to have to offer a higher rate to long term and reliable residents. And we have no control over it. Hopefully providing exceptional service makes up for that. Most of our resident will pay and won’t leave because of how we treat them.
  • Yazmina Bayala
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50048

While you're deciding what to do, just remember, it's a job. It's not your morals that are in question.

That being said, I've walked away from companies like this. Unfortunately, if they can get the rents, they're not going to listen to any reasons why they shouldn't charge even more.
  • Anonymous
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Is anyone starting to grow a conscience? These 10/15/20% renewal increases are getting to me. 3 months 2 weeks ago #50049

I already voiced my opinion on this to my upper management but it was not well received. I’m all for raising vacant units as high as the sky, but it’s literally making me sick to pass along 30% rest increases to residents struggling from the pandemic who have made every effort to pay on time and in a town where no apartments are available. Very sad times. And I’m in a smaller market where the locals think I’m the one setting prices. I actually fear for my safety in public and at home. Greedy landlords are loathed here.
  • Linda Campbell
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