4 ms·

It really depends on where you are. In many european countries it's traditional for the tenant to fix the problems. Washing machine broke? Get a replacement you

It really depends on where you are. In many european countries it's traditional for the tenant to fix the problems. Washing machine broke? Get a replacement yourself. Pipes clogged? Call a plumber.

ncphillips 7y ago
Why would you rent then?
- bufferoverflow 7y ago
  Most people can't afford to buy. Buying a house/apartment generally requires a 20% down payment, inspections, lawyer fees, realtor fees, and a shit ton of paperwork, and that's assuming a bank will even loan you money at a reasonable rate.
  - Frost1x 7y ago
    Plus, home ownership also reduces your mobility. With rent I have a lease I can typically sublet or end. If not, I'm at most liable for the remainder of the lease. If you ever want or need to move, you have the liability of selling your home, managing a mortgage plus rent, etc. on-top of finding a new position, moving, and everything surrounding the act. The obvious downside is you'll never get any ROI beyond having a place to live like you may with property ownership. Homes are great when you have financial stability and freedom but can become a big shackle if you don't.
YorkshireSeason 7y ago
I recommend thinking about this probabilistically: X% of tenants are reasonable and handle the repairs they are contractually required to handle smoothly. (1-X)% of tenants are a massive headache, and call the landlord for every lightbulb that needs changing, threaten to sue you all the time, smash your property to pieces etc etc. Compute the expected value, and compare with other forms of investment. In my experience, renting out a single property is not worth the expected reward, vis-a-vis other forms of investment. This changes if you can reap economies of scale from renting out multiple properties. (Cut-off point depends on ambient legal system, tax, your own background (e.g. if you are a lawyer, you can handle legal disputes yourself) etc.)
- apathy 7y ago
  Hello fellow statistician (whether by training or habit). For everyone else, note that this approach is not limited to landlording. Excellent exposition!
- NullPrefix 7y ago
  >(1-X)% of tenants You mean (100-X)% ?
spacesuitman2 7y ago
Which European countries?
- freshm087 7y ago
  In Eastern Europe it's often the case. Worth mentioning however that plumbing services are much cheaper then in States, and there are usually no legal/insurance nuances which reapairing may bring in the US. So it's simply easier to call a plumber and have trouble solved then include a landlord into equation. Broken washing machine, or expensive furniture in most cases are on landlord, though.
- MandieD 7y ago
  Germany, for sure - tenants usually own their own washing machines and most of the time, their own kitchens, including all appliances, cabinets and the proverbial kitchen sink. Tenants are essentially paying for the right to occupy the dwelling, and that’s about it. Therefore rental price to purchase price ratios have historically been lower, as well as home ownership rates. Rents in desirable cities are going up faster than they had been, though, and Berlin has quickly gone from being one of the cheapest cities in the country to one of the most expensive.
docbrown 7y ago
I agree with you on this more than the original response. From my time renting — houses and apartments — the former has always been more of an “as-is” type rental. In a house rental, the landlords tend to usually only be responsible for the big ticket items (hot water tank, septic tank, foundation/exterior issues, etc.) while you were left to deal with moderate homeowner fixes. Apartments on the other hand, especially a complex, we’re held responsible for every repair. Pilot light out? Maintenance. Broken window? call the office. Your water pressure suddenly got cut off at 3:30am? Hello, 24/7 maintenance line.
mrighele 7y ago
I would say that it depends. Regular maintenance of course is on the tenant, if the washing machine is not mine and it brakes down I would not repair it without first discussing it with the landlord. If it broke down because of my misuse I'm fine paying, but it is just regular wear why should I ? I'm paying a premium for a furnished house after all. Of course the best is to make it clear at the moment you rent, not when the issue arise.
diegolo 7y ago
Not in Uk
cblum 7y ago
Same thing in South America. Edit: I find it insane that most people in the US don’t see the advantages of renting. When you rent here, your housing cost is fixed for at least a year. Anything breaks, you call the landlord or leasing office and it gets fixed at zero cost to you. I really miss renting. Now that I own a condo, I keep having to deal with unexpected expenses - fridge breaks, something comes off the drywall, microwave breaks, plumbing issues, etc. Plus, I don’t have the option anymore of moving closer to my kid’s school when she transitions to middle and high school (and those are quite far compared to her elementary school). I mean, I do, but selling a place and buying a new one is a monumental hassle compared to switching apartment leases. I would go back to renting if I could.

It really depends on where you are. In many european countries it's traditional for the tenant to fix the problems. Washing machine broke? Get a replacement yourself. Pipes clogged? Call a plumber.

ncphillips 7y ago

Why would you rent then?

bufferoverflow 7y ago
Most people can't afford to buy. Buying a house/apartment generally requires a 20% down payment, inspections, lawyer fees, realtor fees, and a shit ton of paperwork, and that's assuming a bank will even loan you money at a reasonable rate.
- Frost1x 7y ago
  Plus, home ownership also reduces your mobility. With rent I have a lease I can typically sublet or end. If not, I'm at most liable for the remainder of the lease. If you ever want or need to move, you have the liability of selling your home, managing a mortgage plus rent, etc. on-top of finding a new position, moving, and everything surrounding the act. The obvious downside is you'll never get any ROI beyond having a place to live like you may with property ownership. Homes are great when you have financial stability and freedom but can become a big shackle if you don't.

YorkshireSeason 7y ago

I recommend thinking about this probabilistically: X% of tenants are reasonable and handle the repairs they are contractually required to handle smoothly. (1-X)% of tenants are a massive headache, and call the landlord for every lightbulb that needs changing, threaten to sue you all the time, smash your property to pieces etc etc. Compute the expected value, and compare with other forms of investment. In my experience, renting out a single property is not worth the expected reward, vis-a-vis other forms of investment. This changes if you can reap economies of scale from renting out multiple properties. (Cut-off point depends on ambient legal system, tax, your own background (e.g. if you are a lawyer, you can handle legal disputes yourself) etc.)

apathy 7y ago
Hello fellow statistician (whether by training or habit). For everyone else, note that this approach is not limited to landlording. Excellent exposition!
NullPrefix 7y ago
>(1-X)% of tenants You mean (100-X)% ?

spacesuitman2 7y ago

Which European countries?

freshm087 7y ago
In Eastern Europe it's often the case. Worth mentioning however that plumbing services are much cheaper then in States, and there are usually no legal/insurance nuances which reapairing may bring in the US. So it's simply easier to call a plumber and have trouble solved then include a landlord into equation. Broken washing machine, or expensive furniture in most cases are on landlord, though.
MandieD 7y ago
Germany, for sure - tenants usually own their own washing machines and most of the time, their own kitchens, including all appliances, cabinets and the proverbial kitchen sink. Tenants are essentially paying for the right to occupy the dwelling, and that’s about it. Therefore rental price to purchase price ratios have historically been lower, as well as home ownership rates. Rents in desirable cities are going up faster than they had been, though, and Berlin has quickly gone from being one of the cheapest cities in the country to one of the most expensive.

docbrown 7y ago

I agree with you on this more than the original response. From my time renting — houses and apartments — the former has always been more of an “as-is” type rental. In a house rental, the landlords tend to usually only be responsible for the big ticket items (hot water tank, septic tank, foundation/exterior issues, etc.) while you were left to deal with moderate homeowner fixes. Apartments on the other hand, especially a complex, we’re held responsible for every repair. Pilot light out? Maintenance. Broken window? call the office. Your water pressure suddenly got cut off at 3:30am? Hello, 24/7 maintenance line.

mrighele 7y ago

I would say that it depends. Regular maintenance of course is on the tenant, if the washing machine is not mine and it brakes down I would not repair it without first discussing it with the landlord. If it broke down because of my misuse I'm fine paying, but it is just regular wear why should I ? I'm paying a premium for a furnished house after all. Of course the best is to make it clear at the moment you rent, not when the issue arise.

diegolo 7y ago

Not in Uk

cblum 7y ago

Same thing in South America. Edit: I find it insane that most people in the US don’t see the advantages of renting. When you rent here, your housing cost is fixed for at least a year. Anything breaks, you call the landlord or leasing office and it gets fixed at zero cost to you. I really miss renting. Now that I own a condo, I keep having to deal with unexpected expenses - fridge breaks, something comes off the drywall, microwave breaks, plumbing issues, etc. Plus, I don’t have the option anymore of moving closer to my kid’s school when she transitions to middle and high school (and those are quite far compared to her elementary school). I mean, I do, but selling a place and buying a new one is a monumental hassle compared to switching apartment leases. I would go back to renting if I could.