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As likely as not, they have loans where something is conditional on the rent, e.g. the landlord has to put up additional collateral if the current collateral's
by Arnt 6y ago
As likely as not, they have loans where something is conditional on the rent, e.g. the landlord has to put up additional collateral if the current collateral's value drops, and the value of the collateral is defined as "x times the last three rent payments received".
- mjevans 6y agoFirst, non-rented months _really_ should count; as zero for that time. Second, it sounds like they're over-leveraged.
- Arnt 6y agoIf you assume that the landlord prefers to do repairs/maintenance/improvement between tenants and that that's the most common reason to not let out a property, then not counting that time makes sense. I'm not at all surprised if some landlords are over-leveraged, particularly not now. A lot of people have bled money in the past year.