The larger the mortgage on a building, the higher the rent.

Some property owners have no mortgage payments at all, so they can charge
lower rents.  These are the "good" landlords.

Other property owners have purchased their buildings more recently, paid
higher prices and need to collect more money just to cover the monthly debt
service payments.  These are the "bad" landlords.

Here are a few other expenses that influence the amount of rent required to
make ends meet:

  Property taxes (we know these are going up)

  Insurance (my premiums tripled for next year because of the 9/11 attacks)

  Bad Debts (the more people who don't pay, the higher the rent is for
everyone else)

  Vacancy costs (these are increasing)

  Repairs (this varies a lot depending on the age of the building, conduct
of the residents)

  Utilities (water/sewer going up, heating costs went through the roof last
year, OK so far this year)


If rental housing is such a profitable business, why do we have to pay
developers millions of public dollars to build more of it?

Vicky Heller
St. Paul

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