Rent Stabilization

Alden Park Apts Model

Alden Park Apts Model

To Stabilize Or Not To Stabilize?

When I started Cool Places to Live, there wasn’t as much talk of rent stabilization as it has been in more recent times, so here is my take on rent stabilization, and it may or may not surprise you. I am all for everybody being able to partake in living, working, and playing in, and around downtown Detroit, but I don’t think there should be any rent stabilization. Here are the reasons why, there are advantages and disadvantages. After doing the research I feel that the disadvantages outweigh the advantages. The advantages are the obvious, because they can’t price you out of it you get to stay in your apartment indefinitely, at pretty much the same amount of rent, yaay you right? Well maybe. I can’t get into a lengthy conversation of the disadvantages because it would be two pages long, but the short of it is this, rent stabilization reduces the available supply causing a housing shortage. When a property owner is restricted with the amount of rent that they can charge, they are less likely to construct more housing, so if tenants aren’t leaving, and property owners aren’t constructing, then there is less availability. Also with tenants not vacating, landlords are less likely to maintain the property, outside of the bare minimum responsibilities, much less do any upgrades, so forget about those granite countertops, and stainless steel anything, because as long as you’re there not paying a rent increase, they have no desire to make improvements. This situation might be idea for some renters, but let’s not forget that you may want to move someday, and if nobody’s moving out, where are you going to move to? Try not to get rent stabilization confused with rent control, they are very similar, yet slightly different, which I will discuss at another time. So what’s the solution? There needs to be an intended percentage of affordable housing mixed in with mid, to high-end luxury housing, meaning that the property owner, or investor, should want to provide affordable living and not be forced into providing it. Shelborne Development  is a development company that is providing low income-affordable housing, located on the out skirts of downtown that would make residents in some of these luxury apartments wonder, why in the heck are they paying so much?! I’m talking granite countertops, stainless steel appliances tons of closet space, and faux cherry wood floors, so there is someone out there filling in the blank spaces in the market. At the same time I don’t think that the supply should completely meet the demand, because in my opinion there should be some level of allure to live in the heart of our beautiful city of Detroit. What do you think?

Cool Tip For The Day

Cool Tip for the Day: Notices to vacate. To make your search less frustrating, you need to ask the policy for notices to vacate, and you need to check at the first of the month. Some properties require from their residents 30, 45, or even as far out as 60 days notice. If you asking for availability from a property that only requires a 30 day notice, and you’re looking to move in the next few months, sorry but they won’t have that information for you.  

Cool Tip For The Day

Cool Tip for the day: Safety?  We get this request a lot, and unfortunately we can’t guarantee anyone’s safety, not to mention that’s a lot of pressure to place on someone.  Our response to that is, bad things can happen anywhere, anytime, any place, to anyone, and it is really up to you to be responsible for your own safety, and take precautions, like not leaving your windows open while away from home, or coming and going on a schedule, things like that.  Most crimes in greater downtown Detroit are crimes of opportunity, make sure you don’t give anybody one.  Stay safe out there!!

Cool Tip For The Day

Cool Tip for the day: Because I’ve worked on both sides of the fence, when a leasing person tells you that “this is the last one” most of the time it’s not a sales pitch, it is the last one, so if you really like it you need to take it, especially in Detroit.

Cool Tip For The Day

Cool Tip for the day: If you decide to go at this apartment search  thing on your own, beware of the landlord/property manager that makes promises, but won’t put them in writing.  If they won’t put it in writing it’s a strong possibility that they are making promises they don’t plan to keep.  Don’t move in on a promise.