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>they are now advising a default annual increase of the maximum allowed (7 percent before inflation) Is the property management company collecting an extra com
by john_moscow 7y ago
>they are now advising a default annual increase of the maximum allowed (7 percent before inflation)
Is the property management company collecting an extra commission each time a new tenant moves in? Because all this strategy is going to do is let tenants quit once the rent goes considerably above the market rate.
A much wiser strategy, IMO, would be to watch the market rates and keep the existing tenants' rate constant until the market rate climbs considerably higher (7% sounds like reasonable threshold) and then raising it to be marginally below the market, incentivizing the tenant to stay.
- halflings 7y agoIsn't OP saying they are doing this because of rent control? (e.g not being able to change rent selectively, only able to constantly increase rent?)
- kd0amg 7y agoSpecifically, it's an attempt to hedge against the possibility of the market rate increasing by more than 7% in a year.
- deleted 7y ago[deleted]
- tathougies 7y agoThe entire market is going to do this. Legalizing a 7 percent increase basically means mandating the entire market move at this rate.