Friday, September 16, 2005

Cashing In, Kicking Out

I'm wondering how many people are being faced with the unpleasant job of kicking out long-term tenants so they can finally cash in on the second home they bought 20 or 30 years ago as an investment. As the talk of a housing bubble puts the fear of a crash into those nearing retirement, they must be thinking that now is the time to sell.

I wonder mostly about those who bought second homes in the 1970s or 1980s and rented them out. Many of them likely have families as long-term tenants. Some of those renters have surely enjoyed low, or no rent increases during their tenancy. That becomes a double whammy when the landlord decides to cash in on his investment, kicking the tenant into a rental market that's so out of line with what they've been paying that it inflicts a financial hardship on the tenant.

I'd be curious to hear thoughts on this.

— The Boy in the Big Housing Bubble