Triple G

This could explain rent prices.

I'm going to check if they have a presence in TN.

https://www.reuters.com/legal/litigation/first-settlements-reached-realpage-rental-price-fixing-lawsuits-2024-02-05/

RixPix Loc: Miami, Florida

Rental prices in my area have quadrupled in the past 20 years. They have doubled in the past three years. Nearly 90 percent of the recent increases are due to the increases in property insurance.

Here's my experience.

When I relocated to Florida, I rented a one-one for $500 a month. After six months my rent nearly doubled. I decided to buy a place.

My condo is one of 27 mixed-size units in a waterfront building here in Dade County. I pay a separate premium for contents insurance and the association pays for a policy that covers everything else.

For our 2023 association insurance premiums rose by 35%. For the 2024 fiscal year, we budgeted for a similar increase only to receive an increase that's 80% higher than in 2023. Each unit was assessed for the shortfall in the budget. Our assessment was $1,600.

My HOA fee has risen from $105 per month in 2000 to a whopping $900 per month in 2024. We expect that our policy premiums will again go up for 2025.

We have considerable equity in our condo. I paid $90,000 cash for it in 2000. I took a HE loan in 2003 and pulled $150,000 in cash out. That loan was paid off in 2013.

Last month, a similar condo to mine without the renovations I did ($150,000 worth) sold for $479,000. In discussing things with a neighbor, I found that my 2-bedroom, 2-bath with secured parking will rent for nearly $4,000 monthly. Many of my friends are selling and moving but more than half are buying out of state and using the rents to pay for the new place.

Blurryeyed Loc: NC Mountains.

So, how do you figure interest rates may play in the cost of rentals? As the cost of ownership rises so will the cost of rental.

Triple G

Dod you read the article? Are there any lawsuits by you charging with price fixing?

Shutterbug1697 Loc: Northeast

You might like to read this article before making a final decision about retaining your condo with the intent to rent and planning on using the rental proceeds to pay for a new home's mortgage.

https://insideclimatenews.org/news/06032024/florida-skyrocketing-insurance-rates/

The article does a pretty good job of explaining the rising insurance costs in Florida and several other states in the country.

One contributor is that insurers are pulling out of particular markets, or going out of business because of the significant increase in claims made. Climate related events are a major contributor to the reduced number of insurers in certain market locations across the country, with Florida leading the list due to the ever increasing number of hurricanes hitting the state.

Your potential plan to rent your condo could be just one natural disaster away from putting yourself into a financial situation from which you might not recover. You should factor in future natural disasters and the potential damage which could occur into your decision making process.

The thoughts of a sizable amount of rental income shouldn't cloud your decision, because you really need to factor in natural disasters and the potential property damage brought on by that natural disaster.

What would a total immediate stop in your income inflow from the rental property do to your bottom line?

How much higher insurance premiums are you willing to absorb before crying uncle and throwing in the towel on owning property in a high cost homeowners insurance market?