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Why should landlords extract more from their renters, just because they can?
by stainforth 5y ago
Why should landlords extract more from their renters, just because they can?
- putnambr 5y agoThat's exactly it, maximizing profit. Lots of rental units, at least in my area, aren't owned by individuals anymore. They're owned by corporations or private equity who have an obligation to their shareholders to maximize profit. If I stop renting, someone else will pick up the bill. The landlords' operating costs haven't gone up significantly either. They own the property outright, the same maintenance crew is around, they're down a leasing agent and manager from a year ago, and property tax increases are capped in this city. Any rent increase they can push beyond inflation directly lines their pockets.
- chii 5y ago> If I stop renting, someone else will pick up the bill. aka, they are charging the market rate, which other people in the market are willing to pay for the use of the building. The increase in rental income for landlords mean that there should be pressure to build more buildings to let out. Market forces _should_ cause stablization, if only it is allowed to work long term. Short term, there will be pain, because you can't build a new building instantly, but this pain is what causes new buildings to spring up. Market-distorting forces, such as building density/height regulation, and local residents' complaints (NIMBYism) is the cause for the lack of stablization imho.