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Is this also why apartment complexes seemingly refuse to lower the rent when demand slumps, but rely on one-time incentives? I'm talking about the "move in spe
by drewg123 5y ago
Is this also why apartment complexes seemingly refuse to lower the rent when demand slumps, but rely on one-time incentives?
I'm talking about the "move in special!" "one month free rent", etc. It would seem more rational to reduce the rent by 1/12th...
- burlesona 5y agoYes, exactly.
- devinplatt 5y agoIf I recall correctly, sometimes there are laws that put a % cap on yearly rent increases. They're intended to protect existing tenants, but they also discourage landlords from reducing rent if they think rents will come back up in the future faster than they're aloud to raise them. So instead you get a one-off discount.