Where does your rent go? The truth may surprise you!

Sometimes our tenants will say things that suggest they have a misunderstanding of where their rent money is going. Often it seems like some people feel there is someone with really deep pockets just raking it in, and those people should be able to absorb whatever issue the tenant may have. The truth is, landlords, as businesses, have bills too, often really big ones, and struggle to meet them, often with minimal margins. Our resources are limited too and most of the rental income we bring in goes right back out to someone else: banks, taxes, utilities, and the people who support and maintain the homes.

We will always help when we can, so reach out if you are struggling financially and we will work with you individually to come up with a plan that works for your situation. How can we help you?

The National Apartment Association has some information about where each $1 goes, and thought it might help with some misconceptions. Whatever your concern is, let us know and we will try to help. The remainder of this note is from their educational materials. Let us know how we can help you!

Where’s your $1 go? Banks, Taxes, Utilities, and People

Where does my rent go?

Because there exists a misconception that rental housing owners enjoy large margins and can continue operating in the absence of rent payments, and with so much discussion around rents during COVID-19, the National Apartment Association (NAA) has released resources for its members and affiliates to use to help explain the breakdown of $1 of rent.

NAA offers this explanatory video and companion infographic breaking down a dollar of rent into its component parts.

From property taxes that finance schools, emergency services and other local needs, to investor returns that include public pensions and 401(k)s, as well as the dollars put back into the apartment community to ensure quality living for residents, a rent payment is much more important than one might otherwise realize.

Please utilize these resources in your conversations with policymakers and your community and help them understand the importance of rent payments, especially for those who are financially unaffected by the COVID-19 pandemic.