Rentals in Milltown>Question Details

jill, Renter in Milltown, NJ

why are rentals so expensive?

Asked by jill, Milltown, NJ Mon Dec 30, 2013

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Dear Jill,
There are many reasons why rental properties are very high in this tri-state area. One reason is due to our proximity to both NY, PA and CT. Please reach out to us so we can discuss your many options within this area. We can be reached at (908) 912-5295 or via email at Toni@MorettiTeam.com. You can also feel free to visit our website at MorettiTeam.com. Thank you, again, for posing your question on Trulia.
0 votes Thank Flag Link Mon Dec 30, 2013
The rental market, like the residential real estate market, has trends and is subject to supply and demand. The reason landlords are able to charge high rent prices is because NJ is densely populated and there is hardly ever a shortage of people looking for housing.

Plus, when it's harder to get pre-approved for a home loan, renters rent as they work on improving credit history and save for a down-payment.

Cutting your expenses, increasing your income, save, live below your means - All things that I would do and have done when I was in your position. When I moved out of my parents house for the first time, I rented a 3 bedroom apartment for $1300 in Harrison NJ and took on 2 roommates. My expenses were about $600/month of which I lived with them for 5 years and was able to save and reduce my debt - mostly my student loan debt and credit cards.

If you have children, this might be harder to do - i.e. live with roommates. But, it's possible if you research rentals and find a landlord willing offering market rent or below market rent.
0 votes Thank Flag Link Mon Dec 30, 2013
Renting is very expensive! You are throwing alot of your money out. Considering buying a home. There are state programs out there is assist with the downpayment and sellers concession to assist with closing cost. You can be renting a larger place from yourself. Better yet have a tax write off too. Interested in buying call me on my cell 732-688-0800
0 votes Thank Flag Link Mon Dec 30, 2013
Because the renter is paying the landlords, mortgage, insurance, maintenance, taxes, refurbishment, profit and making a payment towards the landlords retirement. That is EXPENSIVE!
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Renters should consider becoming qualified buyers. After all, they are PAYING for the real estate anyway, they just don't own it.
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Establish a budget.
Reduce you spending.
Live below your means.
Save money.
Increase you income.
Reduce you debt.
Buy a single family home.
0 votes Thank Flag Link Mon Dec 30, 2013
It's a matter of supply and demand, coupled with a 'landlord unfriendly' environment. If you have read New Jersey's 'Truth in Renting" you will see that almost 100% of the protections are for tenants, very little for landlords. If the judicial system and the legislature refuse to protect both the tenants and the landlords rights equally, fewer people are going to invest in residential rental units.

Landlords are in business to make money. Rent control laws in some New Jersey cities prevent landlords from realizing a decent return on their investment, thus also discouraging investment in rental units. And, whenever a tenant refuses to pay his rent and has to be evicted, the owner is going to suffer a financial loss that will be passed onto the other tenants. Add to that the tax burden, property tax, income tax, etc., and you have a situation where an environment that is not friendly to investors/landlords has lead to a shortage of rental housing units and a problem with supply and demand.

These two factors, the owner's 'cost of doing business' and supply and demand force rents to go higher and higher. The higher the owner's 'cost of doing business' the higher the rents will go as he/she is forced to pass along those costs to the tenant. The lower the rental units to tenants ratio, the higher the prices of rent are going to go as the competition for those units increases.
0 votes Thank Flag Link Mon Dec 30, 2013
Jill, landlords set their monthly rental prices, based on the competition and their overall exepenses. And, of course, most landlords are hoping to make a profit.
0 votes Thank Flag Link Mon Dec 30, 2013
Alan May, Real Estate Pro in Evanston, IL
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