My rent goes up $95 starting with May.
A notice - from Martek - was under my apt door when I got home today.
I'll bet the same thing is happening all over the city.
I'll be ok - but that size of increase must hit some tenants really hard - not just in this building - but at the great number of highly desirable apartment properties owned by Killam in many cities. If people do move, they will either be moving down-scale from great buildings in great locations or purchasing homes/condos. Personally I prefer apt living.
If I was not taking ECON2020 - Macroeconomics - this term, I would have just laughed as I still consider the apartment very underpriced for its wonderful location. In fact, I think it is the very best location in the entire city.
However, as an economics student, I wonder how Killam / Martek calculates "inflationary factors" ? From surfing, I understand that increases in property assessments need to be factored in. It would seem that consumers always pay the tax in the end, so it will be interesting in future economics courses to see how raising apartment property assessments fits in with community planning by cities. Why would any city not see apartments as a great alternative land-use to private homes ? Personally, I love skyscrapers.
Killiam even setup a webpage years ago - 2008 - "Killam For The Tenant" informing tenants that apartment assessments in NS increased significantly whereas other residential properties were capped at CPI - Consumer Price Index. I would argue that city policy is unfair to the people who want to make money renting houses. Why not let all the properties rent at market value ?
Someday I am going to buy stock in Killam Properties Inc.
If any of my readers are curious - here is the website with investor information:
As a capitalist, I don't think that rent increases should be tied to the inflationary rate. I think it should just be a question of how much are people willing to pay to live in a great location and let the market sort itself out. I believe in rent subsidies for the poor - but not in any form of rent control. If someone was willing to pay double or triple my rent, then I should have to match their offer to stay or I should leave whether I am renting an apt or renting a house.
This rent increase is NOT to recover any improvement investment costs re my unit as not 1 cent has been spent directly on my apt. Nothing has been necessary. Everything is fine. I love where I live. I always say, "Donald Trump has nothing better than me !" I should mention that both my hot water tank and fridge were brand new when I moved in. The company regularly updates apartments so tenants live problem free.
While we make every effort to control costs, certain inflationary factors result in the need for nominal rental increase. As a result, effective May 1, 2012, your rent shall be increased from $720.00 to $815.00, representing an increase of $95.00. This increase is in accordance with the requirements of the Residential Tenancies Act for the Province of Newfoundland and Labrador, Section 14."