High Energy Prices Affecting Landlords? You Betcha…

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

FurnaceWith many older apartment buildings, utilities are built into the rent as common furnaces are deployed. You see this much more in the northern cities where central air is not offered.

But with the sky high increases in fuel oil and natural gas, these landlords are taking a beating. This issue hit my radar screen when Warren Marcus LLC, a Wisconsin landlord, had to file Chapter 11.

If energy costs are the only increase, most landlords can probably ride it out till the next lease comes around. However, if there are any other unexpected business costs that arise, watch out below.

And traditional upgrades for rental units that have utilities included probably will be postponed. The money for improvements are going directly to the power and oil companies.

With a Chapter 11 filing, a company still can run its business, but the move allows it to restructure its business operations while preventing creditors from seizing its assets.
According to court documents, Warren Marcus ran into cash-flow problems last year, in part because of rental issues and also because of higher energy costs. via mlive.com.

Related posts:
  1. Two Thirds of Landlords Will Lower Rent For Struggling Tenants
  2. Landlords Better Get Ready For A New Accounting Headache With New Tax Plan
  3. Waxman-Markey Cap And Trade Will Make Homes Cut Energy Consumption 62 Percent
  4. Circuit City Liquidation Hurting Landlords Hard
  5. Real Estate Developer Tarragon Files for Chapter 11

Post a Response

« Back to text comment
  • Popular

    Most Comments

    Search

    Tags

    Archives

  • Recent Comments

    • Well Tom, once again you have said it much better than I could have. Unfortunately the folks at Move, ...
      Joe Spake | 7Nov09 | More
    • It certainly does not bode well for a fast recovery in the economic climate. This will affect all real estate ...
      Antony Lexington@Home loan | 7Nov09 | More
    • I HAVE 25 YEARS EXPERIENCE IN TELECOMMUNICATIONS..HOW DO I APPLY AT KAI.
      ROBIN SPURLIN | 6Nov09 | More
    • Definitely not a fan of Move Inc.!!!
      Tony Sena | 6Nov09 | More
    • A lot of you really need to go back to kindergarten and learn to spell correctly. If you cannot spell ...
      SpazzyCat | 6Nov09 | More
    • In 2008, there was an extension to push first-time home buyers to purchase their homes quickly since the program did ...
      Mary | 6Nov09 | More
    • I also need HELP and don't know what to do about my problem. I have a garden apartment off ...
      Cheryl Gungor | 6Nov09 | More
    • I have the same situation. I sold my home in July and am scheduled to to close in a few ...
      Arlo Moehlenoah | 6Nov09 | More
    • My cousin in Maryland going thru same thing as Jack Thomas. Have loan Mod Agreement from Countywide dated April 2009, ...
      Trying to help BoA customer | 6Nov09 | More
    • Print Ads is the popular way to advertise among seniors in the business industry but today it seems like it ...
      Central Oregon Homes | 6Nov09 | More
  • Statistics

  • Friends

  • Recent Friends Visiting

  • Subscribe





    Get Updates Delivered Daily By E-Mail:

    Delivered by FeedBurner