'My landlord is jealous of my income, raises my rent $500. I screw him years later for $20k.'
"My landlord is jealous of my income, raises my rent $500. I screw him years later for $20k."
In the late ‘90s wife and I were just married, just getting started, and we decided to DINK (“double income, no kids”) it for a few years to save up for a down payment on a house. The dotcom bubble was still rising and I was a newly minted software developer.
I had an entry-level job for a while and then got recruited to a new city and a new job that paid 3x what I was making before. It was an offer too good to pass up. I ran the numbers and it was a no-brainer: by living frugally and saving my entire salary, living off just her income, we would easily have enough in a year to put 20% down payment on a new house.
We rented an apartment in the new city that was listed for $950/mo. The landlord was a real estate agent who owned a two-bedroom condo as an investment property. Let’s call him "Hank Wazowski." Hank was a thin, gray, no-nonsense guy. He was pleasant enough, but perfunctory, dry, and had no sense of humor.
He made a point of explaining that under no circumstances was he responsible for maintaining the garbage disposal and that it was NOT included in the rental agreement and he would not be responsible for fixing it were it to break. Um, okay. He seemed slightly amused by us, a clueless, young, newlywed couple, but I could tell he wanted to rent to us because we were very obviously a safe choice as renters.
We filled out the rental agreement and the credit check, and this is where my troubles began. Hank looked hard at the credit application where I listed my job title, “Software Developer”, and my income, $75k. For a 23-year-old in his second year out of college, in the late 1990’s, this is a small fortune.
Throw in my wife’s salary and we were over six figures in income, renting an apartment far beneath our means. Like I said, DINK is the way to go when starting out. “I can’t believe how much money you make.” Hank must have said half a dozen times, muttering under his breath.
I explained we were saving to buy a house and that we were only going to stay in the apartment a year. “We might stay a few months after the term is over, would month-to-month be ok after a year?”
Hank assured us that would be fine.
We saw Hank only once during the year and he again mentioned my salary and how he couldn’t believe that’s what software developers were making. It was awkward and I gave a vague reply. Anyway, a year later we had found a house to buy, signed all the papers, and were making plans to move.
The new house wasn’t going to be ready until two months after our rental lease was up, so I called Hank to ask if we could, as discussed, simply extend the lease by two months before moving out. Hank assured me on the phone it would be no problem and he would send over an extension for us to sign.
The extension arrived in the mail and it included a month-to-month clause and a $500 increase in the rent. I flipped out and called him.
“Hank, why are you increasing the rent over 50%? That’s too much! That’s more than my new mortgage is going to be!”
He was super condescending to me, “RockyMoose, it’s what the apartment goes for now. I would be losing money by renting it for less.” I tried to reason with him but it was very clear he knew we could afford the $500, had no choice in the matter, and he was going to screw us over as best he could.
He got angry with me for arguing my point, and I’ll never forget his parting words:
“You don’t have to like it, RockyMoose, you just have to pay it.”
My wife and I tried to figure out a way to move out early by putting our furniture in storage for a couple months and crashing with friends, but it just wasn’t going to work out. I swallowed my pride and wrote out the check for $1450 for the extra month. A month later I wrote a similar check, and then we moved out.
I made sure the apartment was spotless before moving, but still Hank withheld $300 from our security deposit for BS things that were just a way for him to squeeze a few more dollars from the kids who made too much money. $100 for cleaning, sure? But $300 was obscene. In my mind, he had screwed me over for $1200 and there was nothing I could do about it.
What made is even more infuriating is that I saw the ad Hank put in the paper after we moved out and he listed the apartment for rent at only $150 more than we had been paying originally, not the grossly-inflated $500 increase. And it didn't rent. A month later I saw the same ad and he had lowered the price to $75 more than we had been paying, and I assume it got rented since the ads stopped appearing.
Fast-forward about five years. Life is good, the house is good, we have a baby, and even though the dotcom bubble has burst, I’m still employed. One day, out of the blue, I overhear one of my co-workers, Phil, a senior developer, talking to the guy working the reception desk:
“Hey, Mike, I’m expecting someone to drop off some paperwork for me. If a Hank Wazowski asks for me, tell him I’ll be right out.” I freeze and get a taste of bile in my mouth remembering how I had to write out that name on those checks all those years ago. There’s no way it’s the same guy, right? I walk over to Phil who is still by the reception desk.
“Phil,” I say, “How do you know that name, Hank Wazowski?”
Phil explains that Hank is his real estate agent. “I bought my condo through him several years ago. I’m selling my condo now so I can buy a house. So I’m going to ask him to be my agent again. Do you know him?”
I tell Phil that I used to rent an apartment from Hank and described what he looks like. Phil confirms the description: it’s the same guy, wow small world, right? And on cue, right then the front door to the office opens and in walks Hank Wazowski. I stare in disbelief. He’s carrying a folder of papers and doesn’t recognize me.
Phil and Hank shake hands and they talk for a few moments. I stand there silently, wondering what to do. Phil finally says, “Hank, this is my friend RockyMoose, I think you may have already met?”
“Yes, hello Hank. Good to see you again. My wife and I were your tenants a few years ago on ---- Street. Remember, the software developer who rented for a year saving to buy a house? Well, this is where I work. Here. With Phil.”
Hanks eyes indicate he now remembers me, and he’s starting to put it all together. We shake hands and he says yes, of course he remembers and asks how we are doing. “Oh we’re just fine, thanks for asking. Phil says that you’re his real estate agent. Small world, isn’t it?”
Hanks nods pleasantly. He still doesn’t remember the details of our last conversation.
I do some quick math in my head. This is the early/mid 2000’s, the real estate market is very strong and easy money for any agent. The crash of 2008 is still a few years in the future. I start to think out loud.
“Selling the condo for around $150 to 200 thousand, and you’re looking at houses in the $500 thousand range, so that’s $650 to 700 thousand in total transactions.An agent getting 3% on the sale AND the purchase is getting around $20k for his trouble. That’s a good commission for the agent, isn’t it?
Hank's eyes flash and I can tell he remembers everything about me now. Phil is surprised at my passive-aggressive tone. I am enjoying the uncomfortable silence.
Hank deflects my question, saying it’s complicated, and tells Phil to send back the papers as soon as possible. He shakes hands with Phil, looks at me, nods, and goes to leave. “It was really good to see you again, Hank.” I call behind him.
He exits the building. As the door is still shutting, I say a bit too loudly, so that Hank can hear, “Phil, don’t sign anything just yet, I have a story to tell you.”
Phil looks at me and says, “Rocky, what the hell was that all about?!” He looks pissed and confused at my behavior.
I tell Phil the whole story, the rent, the $500 increase, the security deposit, "you don't have to like it, you just have to pay it," everything. “Phil, you can’t use this guy to sell your condo and buy a house. I hate him. He’s evil. I’ll help you find another real estate agent, just use ANYONE BUT HANK!”
So the great thing about Phil is that, well, he’s a great guy. He says he’s a little surprised at my story and has always known Hank as a straightforward guy. “But I totally see him doing that to you,” he admits. “There’s no way I could use him now. What a dick!”
Then Phil’s eyes lit up a bit, “What do you want me to say when I fire him?” (I have special feelings for Phil now.)
We came up with a plan and I made sure there were some key phrases in Phil’s repertoire. We planned it all out together in advance. My only regret is that I didn’t get to see Hank’s reaction in person a day later when Phil made the following phone call while I stood behind him listening:
“Hi, Hank? It’s Phil calling. Yeah, about that. I’ve decided to get some other quotes from other agents. I’m not going to sign up with you…"
[pause]
“No no, you shouldn’t give a discount. You’d be losing money if you did that . . .
[pause]
“No, this is just a decision I’ve made . . . no, it has nothing to do with RockyMoose . . .
[pause]
“Well, you don’t have to like it, Hank. You just have to accept it. Good bye.”
CLICK
And it was the greatest revenge I could have ever imagined: through a chance meeting years later, Hank got screwed out of twenty thousand dollars in easy commissions. And the best part is Hank absolutely KNEW it had EVERYTHING to do with RockyMoose!
Here's what people had to say to OP:
six4two wrote:
The only question I have is how did you manage to walk around the office with a huge justice boner for the rest of the day without offending anyone?
OP responded:
I stumbled upon this forum a few days ago and said justice boner has been re-popping ever since in anticipation of writing down this story. So glad I got to share it!
tanngrisni wrote:
Bring on the downvotes, but there are some fundamental economics that might paint you in a villainous light. I'm not accusing you of being one, but I wanted to lay out some fundamentals that might point to an alternate conclusion.
I can see how you might not see it that way, but everything that Hank did seems not unreasonable, aside from constantly being an irritant about your salary, and maybe not returning your $300 security deposit. More on the deposit later.
The Opportunity Cost Perspective - Depending on the time of the year, two-month extension may easily cost him $1000 or more in rent. Consider the following: Peak rental season is May to September. If your two-month extension moved him out of that time frame, he may have to take a minor haircut (to the market) just to land a deal.
Assuming simple math, with wholly made-up numbers: in May-Sept, he could lease the apt @ $1150 for a 1-year (or more) term. In Sept - Feb (when things are really bad), he may only be able to get $1025 (you mentioned he listed it for only $150 over what you were paying, and he couldn't even land that).
Over one year, he'd already be taking a haircut of $1,500, and only making back $1,000 from your two-month bump. Additionally, he's now outside of that peak cycle unless the next renter wants a 9-15-18 month lease (made up numbers, again). You could have, theoretically, cost him in the long run, despite paying $500 more per month.
Defining the "Market" - You're paying for convenience. The market for a 2 month lease has different pricing than the market for a 12 month lease. $500 a month wasn't unfair, as the market (that's you), accepted it.
A market rate was whatever you'd be willing to pay. You always had the option of temporary housing, moving in with a friend, moving to a hotel (and putting everything in storage etc). So long as you accepted it, the market was defined and fulfilled. Was it price gorging? Sure.
An Eye for An Eye/The Golden Rule Not a fundamental principle of economics, but more the "Golden Rule" - You took a hit of $1000, which you were obviously capable of paying (again, you always had the option not to). You ensured that this person did not make $20,000, which is his living.
The Deposit - $300 doesnt go a long way. It is common practice to do a walkthrough in rentals. You seem like a savvy guy, so it holds that you might have done such a thing, noting imperfections like messed up floorboards, mirrors with peeling corners, lights that just dont work.
You should have presented this, and that your unit matched all the same things at move out so that you could have gotten your money back. He's responsible for "typical wear and tear," which would include picture framing holes, maybe some light scuffing of entryways/high traffic zones, etc. You easily could have recovered this as NY is one of the most tenant-favoring states in the country.
I'm not here to say you're a bad guy; there are a lot of specifics missing. But do consider how from an alternate perspective there are ways that this isn't the tale of revenge, but of you being a pretty medium-bad guy.
OP responded:
Ok, I'll reply, and I appreciate your response.
I don't think this matters much, but the lease was up in Feb and we moved out at the end of April. So he had the condo free right at peak season. Also, it was not a true month-to-month contract, it was just a two-month extension.
He could have started showing the apartment immediately and had renters ready to go on May 1st. In fact, I vaguely remember him showing it to people while we were still tenants, but I might be confusing that memory with another apartment.
I agree with you here. The Landlord priced his excessive increase pretty perfectly. We did the math at the time and the hassle of moving out and putting our stuff in storage would have been about the same price as the rent increase. I had the option, but instead I accepted his rate increase. He knew exactly what he was doing to us.
Damn straight! He lost a sale because of a bad reputation. The market drives itself. But you know what, if he had been a nice person and been reasonable in his dealings with me, I would have been reasonable all those years later when Phil mentioned his name.
I'm not in NY, but had the $300 deposit hit been the only issue, I doubt I would have remembered all those years later. Yes, I could have argued it and maybe gotten some money back, but I didn't at the time and I agree with you on this point.
Absolutely, I was petty in the end, and it's worth considering that perhaps I am indeed the AH in this story. At the same time, I still think that had I been the landlord in this story, I would have been much more reasonable with my tenant.
Euthy wrote:
Great story, but I feel like it's worth noting: a 50% per month increase to stay two months extra isn't actually that unheard of. When I ended each of my last two leases, a 12-month renewal would have run a 8% increase, but a 4-month extension was closer to 40%, and a 50% higher month-to-month was baked into the contract as well if we overstayed without renewing.
Factor in how the rental market can change (two months might have been August to October, which is a big difference in rental demand) and I think you may be off-base in assuming the $500 was because of your income.
lousyarm wrote:
This is so satisfying. I feel like it's everyone's bad landlord fantasy.