Here’s the thing. You put yourself out there. You ask people for their opinions, advice and guidance.
And then they give it to you.
Here is the other thing.
My husband and I have talked a lot about our unit and how much we think we should rent it for. We rent out our lower unit because we can’t afford our mortgage without that additional income. We do not rent it out to turn a profit. We feel very strongly about this.
Living in San Francisco right now, it kind of sucks. The lack of affordable housing is reshaping this city in truly upsetting ways. The amounts people are charging for space are horrendous. So many people are being forced to flee–some of them are our friends. I don’t even want to think about what it’s going to look like when this tech boom is over.
My husband and I do not want to perpetuate the system that we so despise. We are not interested in playing the part of greedy, corrupt San Francisco landlord. We don’t want any part of it.
We have calculated how much our home costs us every year–mortgage and property taxes, utilities, water, trash, home insurance–and multiplied it by 25%, which is the percentage of square footage of our home that the unit represents. Then we add a little on top, for our troubles as landlords. And that is what we rent our place for.
Could we rent it for more? Probably. But we don’t want to. It’s a small unit, in a not-so-great neighborhood, housing a loud family with two small kids above it. The pipes are super loud, especially the ones the connect to the washing machine that bang like crazy on the wall shared by the unit when I run a load of laundry. Also when the shower in the unit turns on it can sound like Armageddon.
We don’t love being landlords. We do this out of necessity. Sometimes it takes us a little while to deal with things that aren’t working great. Sometimes we fix things the cheap way. We’re not trying to screw anyone over, we deal with issues in that space like we deal with issues in the space we inhabit–we always spend as little as we can to fix the problem. Heck, most of the time we fix things down there that we would just deal with in our house: When the unit’s heater stopped working we got it fixed immediately. When our own heating ducts fell down we never had them replaced and didn’t end up turning on the heat one time that winter (and one of those months was COLD).
One of the reasons we keep our unit below market value is because that great deal inspires appreciation, and that appreciation goes a long way in placating people when things aren’t working as well as they could. Will we always fix something if it’s broken? Of course! But we hope they’ll be patient if it takes us a little while to do so, and that they’ll be satisfied even if they solution is less than ideal.
So that is why we don’t rent our unit for what we could rent it for. We don’t want to play the greedy San Francisco landlord, just because an insane renters market says that we can. And we don’t want to have a renter who feels they deserve the best and fastest service when things aren’t working great, in return for spending top dollar on the space. Instead we want to provide a place to live for someone who may not otherwise be able to afford this city (and sure, as someone argued, we can’t change the market by renting our one unit for less than we could, but we do change the life of the one person who is living there). We want to have a good relationship with that person, for them to feel at home in a space that otherwise would be ours, and that we hope we’ll live in some day. We want to foster a sense of community, not of hostility, resentment and entitlement. And so we make a choice to forgo a certain amount of money each month to have that. And we feel good about it.
{We also only rent to friends or friends of friends because we just don’t feel comfortable sharing our space so intimately with someone that no one we know can vouch for, so it’s nice to be able to help out a friend or friend of a friend.}
Maybe this isn’t the right decision. Maybe we’re fools for not asking for every penny that someone might be willing to pay. We certainly could use the money (now is probably not the right time to admit that I can’t afford the therapist, and called and cancelled our first appointment). But we can make it work. And we will. And it will be okay. And for us, right now, we’d rather be stretched a little thin and feel good about how we’re renting that unit, than have more money and feel shitty about what we’re charging and stressed out about what they will expect because we’re charging it.