Edit: I don't live in Missoula, I live 30 miles away, in Stevensville, so no college apartments here! We wouldn't have to pay for daycare. We are enrolled in Early Headstart which would guarantee daytime daycare for my kids if I can work 30 hours or more a day. Also, the rates are going off of the number of bedrooms and the views. And the quality is just sad. Last place we looked at was a duplex 3 bed 1 bath for 650 a month. The door frame was mostly gone, the screens were being held on my duct tape, there were mice feces in the cupboards, and there was a furnace IN THE MIDDLE of the living room. I'm just having a hard time with not being able to provide my kids plently of room to stretch and run. It's cramped living where we are with 4 family members, and I don't want to sacrifice safety for room. Been there done that, failed miserably (daughter got an unexplained rash that made her scratch to the point of bleeding)
As for how much the houses are, we would qualify for a rural development loan, which would put us at 184,610 for a house. The banks wouldn't even look at us because of our income and credit. So we are basing it off of what we can afford. Not what other people can afford.
I just don't understand how people think that "normal" people can afford to rent at the prices out here. I have a family of four, and with my husbands income (13 an hour which just changed to comission work) we can only afford 550 or less. Prices here are: 595 for a one bedroom, 800 for a two bedroom and 1200+ for a three bedroom. Quite honestly, those prices are higher than the payments would be for a house loan. I've seen houses on the market for rent for about 6 months, and the people don't want to lower the price to what people can afford. Then after 6 months they lower in by 10 dollars!!!! What is behind their thinking? Bills? Greed?
My family and I are rather lucky that we found the apartment we are staying at, but it's a 2 bedroom apartment. I have two little ones, both girls, three and one. They cause so much noise, like slamming doors and running, and banging on the walls. We are looking to move so that our neighbors don't get mad. They are understanding, but they are also going into retirement. I would have a peace of mind if we could get a house where noone would hear those. The houses within our pricerange are are either smaller than the apartment we are staying in currently, or are really spacious and just run down, falling apart, and nasty.
My husband just recently started college so that in two years we can get a house. With what he is being paid we are still under the poverty level here in Montana, and I doubt his dad is going to give him a raise anytime soon. And with their pay change, I don't think he ever will. They just went from hourly to commission. It's a rather scary change, considering I don't understand how it will work. If he works in the shop, that is where his money will be made, but they also require him to be in the office drawing up prints. How will that work? It's just scary thinking that if he can't get enough parts made, we won't be able to pay bills.
Anyways, I guess this was more of a rant than a question, but thank you for reading that :)
The prices you mentioned sound really inexpensive to me. Are the rates in a nice area? I think even for a less affluent area $595 for one bedroom is cheap.
Free Market. People charge as much as other people are willing to pay in the area. It's a business.
If someone bought a house for $150,000 and then wanted to sell it, most would want to make a profit. However, nowadays, people just want to get what they put in it or at least not loose their shirts. Bills? Greed? Its their house! They can ask what they want because its theirs!
Most college towns are more expensive to rent in because there is always a need for rentals. You might try looking in other towns close by. Perhaps they would be more affordable. However, I have to be honest, I don't think the rents you are posting are unreasonable. We don't always get what we want. We get what we can afford. I agree, safety trumps space. For now, you might have to be in a smaller space.
You and your husband don't make enough to support your family. Don't pass the blame off on the landlords. If you can't afford to live, you need to figure out a way to make ends meet. Get a job. Have husband get a better-paying job or get a 2nd job. Around here, $1200-$1300/month for renting a house is average. But your problem isn't what the landlords are charging, it's that you can't afford it. That's not their fault, it's yours. Find a way to increase your income to take care of your family.
Rents are high because there is such a high demand for rentals due to foreclosures/bankruptcies flooding the market. More people dumped out of their homes = more demand for rentals = prices go up.
P.S. if it makes you feel any better, 2 bedrooms here are running $2,000 to $2300 for a condo and 3 bedrooms are running $2400-$2800/month
The cost incurred to operate a rental property is not just a mortgage. It is the mortgage, insurance, repairs, cosmetic updating, property taxes, administrative costs (credit checks, billing and collection if they have more than one rental unit), etc. I am not a landlord, so I dont know if I missed any costs, but we are hoping to buy our first rental property this year. And yes, our intention IS to make money off of it. Why else would we buy a property to rent out to others?
Do you not understand what goes into rent?
* their mortgage
* insurance
* fees (if there is an HOA)
Houses in Missoula aren't exactly "cheap" - it's an nicer area. A mortgage on a home $300K home at 3% interest is still going to be $1500 a month. And most of the homes I saw on-line were above $300K. Yeah - there were some cheaper ones - but still - the mortgage on a $269K home is STILL going to be $1600 a month...do you expect people to rent at a loss????
If you are at poverty level - check into section 8 housing. Get food stamps and welfare. Or you can get a job...to help out.
Sounds like he needs to find a new job if his dad won't pay him market value. Once he gets his education - maybe you can move to Spokane or Boise...where he might have a higher chance at getting a job.
It's all relative to where you live. You can rent a 3 br 2ba house with garage here for an average of 1k amonth in a decent area. Once you go down into the 5 and 600's, you are looking at either living in the 'hood, or a house that's falling apart, and I'd guess that goes for most places, actually.
Not being able to afford what landlords are charging is not a matter of rent being too high, it's about your income being too low. A family of 4 living on a $13 an hour income is just not realistic, no matter where you live. A $550 rent budget is again, not very realistic. I am all for being a SAHM if you can reasonably afford it & still give your kids a good life. It sounds like you are not really in the position to not work, honestly.
I hate to say it, but you can't reall blame the landlords for rental costs being so high. This is your responsibility, and no one else's It's time to get a job or find a more suitable city or town to live in. I hate to be so blunt, but it sounds like you're living in la la land. The fact of the matter is that "normal" people do not expect to exist on such a small income. "Normal" people get a job to cover their expenses.
AllI got out of this post is that your FIL does not pay his son enough to make a living. I can't wrap my head around that!
I imagine it would be pointless for you to get job during the day due to the fact your income would be going to daycare, however, you may need to try to figure something out like working nights while your husband watches the kids. Or your husband needs to find a higher paying job. You obviously need more money if you can't afford more than 550 a month with a family of four.
Good luck! I hope things work out for you :)
This is why my husband and I did college and got careers before we married, bought a house 9 months after we married, and had our son 9 years later (we wanted to travel a bit before settling down to raising a family).
It's a struggle to do anything before the career(s) are in place.
Maybe your FIL is a bit upset his son started a family before pursuing his education.
Prices on housing are based on what the owner can get - not on what you can afford.
If no one can afford what they are asking, the property stays vacant.
There's maintenance/upkeep, taxes, insurance, mortgage (if the property is not already paid off) - there are costs involved in owning a rental (or any property) and it's nice to be able to get a little profit out of it after paying off everything else that's involved.
Hi! Well honestly... The rent we charge has to cover the loan, the land and school taxes, and the house insurance. Unfortunately, the damages from those who came before also come into play. Having in the past spent more money in repairs than we collected in rent we have sadly learned we just need to charge more. I know not every tenant is a bad tenant but over time it happens. We've had some great tenants, we've also had some horror shows, they wreck it for everyone It's not happening to us again. We charge a lot, we check references a lot, we inspect a lot, and we take no excuses. I know that's not what you wanted to hear and I do honestly feel badly about being such a **tch but time and crappy tenants have made it turn out this way. Sorry...
Many people are trying to cover their mortgage and then some. So like you said you could buy a house for less than that, well that's what those owners did.
BTW, here on the East Coast, 2 hours from DC, a house like that is going for $1400+
I base my asking rent on the value of the home itself and what other properties are renting for in the area. I don't know your area so to me 595 is a good price (that is cheap). If the average 2 br home is selling for 120,000 then the mortgage would be around 1000 or higher depending on the taxes and insurance.
rentals are high because the people need to cover their mortgage on the house and usually hire a property management company to make sure that the renters are taking care of their property and also has someone available to go to the residence if an emergency was to happen like a hot water issue or something. And if apartment rentals are going for 1200 for a 3 bedroom of course a house will go for more because they are bigger, have yards etc
I think if I were you I'd start thinking about trying to bring in some extra money, if you can. A friend of mine moved out of state when her kids were little, and within a few months her husband's pay dropped drastically (company restructured, he still had to work full time, but for less.) She got a PT job at Target, a few nights a week, and Saturdays. No daycare cost and the money REALLY made a difference. Plus she ended up enjoying the time out of the house, and the kids really bonded more with their dad :)
If that doesn't work maybe you can do some babysitting?
It's hard making it as a family on one income. Good luck!
People with rentals can do what they want...especially in this economy. Many people have hurt their credit with foreclosures/short sales, so now they must rent. Make the best of it--it's a roof over your head:)
I agree about the demand side of it . . . very high for rentals right now.
I also think landlords are gun shy because it can be time-consuming/costly to evict people too. You're almost better off (depending on your situation) to let your house sit empty than rent to "risky" renters.
Also, the cost of property ownership is higher. Our taxes have gone up, as well as our insurance. Those costs get passed along.
I would scan Craigslist, my church connections, etc. for a property owner who might cut you a rental break if you do some improvements on the property - i.e., paint, maintain the yard, etc.
Good luck - I hope you can find something soon.
I think looking into section 8 housing would be a viable option and in your best interest as a temporary helping hand while you finish schooling. Just as a heads up with a commission based job you MUST have 2yrs on that pay before they will look at you for a home loan - and if he is your sole income you are looking at another 2yrs before you can buy anyway - we ran into the same issue.
Yeah family STUDENT housing here is about 1500 a month.. Housing prices have dropped a bit so a 2b/1ba fixer upper house is now apx 400k instead of 500k. For a decent apt or house? We're talking much more. Drive an hour away, though and things are much less.
DO look into low income housing, student subsidized housing, etc. ditto, student loans, grant writing (school grants), etc.
12 per hour, full time, is about 2k per month. Where else can you cut? At 500 a month that's 'only' 1/4 of your income. 1/3 is considered or less is considered ideal... So I'm just curious... With free daycare... I'm thinking there must be some other debts in play? Anything you can shuffle around to free up the extra 250 you need?
I don't know your situation....
What we have always done is live on less than we make. and we've adjusted lifestyle, etc. to fit the income. OT is a bonus. We don't "depend" on it. And we don't buy anything that we can't afford.
It's worked well for us.
If you're talking apartments, I have no explanation for you since it seems pretty arbitrary to me. But if you're talking houses, I think it's just the way the market is right now. A lot of the rentals are people who couldn't sell their homes (at least around here) and rather than short sale/foreclose, they rent. Because these people have mortgages to cover and potentially a management company (that requires sometimes 10% of the monthly bill plus the cost of any repairs that might be needed), even if the home owner's mortgage is less, the rent will be higher just to break even. This doesn't even take into account putting a little aside for repairs which are always going to be needed, even with good tenants.
It is the law of supply and demand. With Missoula being a college town, there will always be a demand for rentals, and they will always be able to charge what they want. Have you looked out of Missoula, near Hamilton?
Housing prices vary greatly from town to town. However, in general I would say that anything under $700 for a 2 bedroom is inexpensive. I think your expectations are way to high.
I would not consider your income situation "normal". You really should take steps to increase your family's income.
Also, you state you don't understand the change in hubby's pay scale. Does hubby? Does he know what his income will be?
everyone is especially illegals are raping our welfare systme u should take advantage while u can....they have rental income housing, section 8, all based on income. the landlord doesnt have to rent to u but it is guranteed rent. and btw, a job cannot pay just on commission alone, they have to guranteed u make at least minimum wage hourly...its against labor laws.
I have been in your shoes. Most couples just starting out cannot afford to live decently. Rent is sky high because people who own rentals can find renters who can afford to pay the ridiculous prices. Your husband's college diploma will be your family's ticket out of this situation you are now in. I'm afraid you'll probably have to deal with rental and financial issues until he graduates. Two years seems like a long time, but the hard work and effort will pay off in spades! I hope that you can find a landlord who wants some improvements done on his property (in a good, safe area), and will take a lower rental fee if you do some painting or make some other improvements to his property. My husband and I did that years ago while I was out of work, staying home with our two children. You are not alone. There are millions of families struggling now because of the poor economy. I wish you the best, and don't worry about ranting...We all need to vent!
K.
Licensed Teacher
Mother of two grown children
Did his Dad restructure everyone's pay or just his? Are there better options for employment in town?
I don't know anything about your town but I know when I needed something decent for low $, walking was the best way to find that. Advertisement = a sign in a window or yard and nothing else.
Good luck!
Rentals are high in many areas right now because many people are hesitant to buy (not knowing which way the housing market will go) so there is a glut of renters. The prices you are stating sound pretty low to me. The last time I rented (eastern KS, suburban) I paid $1300 for a 2 bedroom and that was 16 years ago. Most people manage by both working full time. A single $13/hour job does not support a family of four. Remember the landlord needs to cover the mortgage, school/property taxes, repairs, upkeep, etc +/- utilities. As well as make some amount of property to justify their investment.
Count your blessing for the apartment that you are in right now. If you can't afford more, then make do with the two bedrooms that you have. I have 4 children now and we were able to purchase a 2 bedroom house 2kids ago. WE got rid of stuff, converted space in the garage for a room for our oldest and spend a lot of time outside playing. It's tight, but it is what it is. If you have Headstart daycare then get a job to start saving money for a future apartment or house. We live on one salary, my husband is a teacher (read no big money) and pay $800-$900 a month on our mortgage. Try cutting your grocery bill, don't buy any sodas and candybars, those little dollars add up, don't redbox, go to the library and check out books and movies there. I am thankful we were able to buy this house and make it work bc I would hate to have to rent here... a two or three bedroom here runs $1500-2800/month. Talk to your neighbors. I bet they are more understanding than you think...as long as they can get sleep at night!
