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I haven’t raised my tenants rent since 2018 when I bought the rental. I just had him pay what he had been paying. Maybe you should be a landlord and help break

I haven’t raised my tenants rent since 2018 when I bought the rental. I just had him pay what he had been paying. Maybe you should be a landlord and help break the cycle?

vanveenada 5y ago
this is an example of "price stickiness." People selling goods tend to let the price stay at whatever level it's currently at longer than is strictly rational. Because prices tend to be sticky, wage-driven inflation tends to result in real gains for wage-earners.
- ethanbond 5y ago
  (Temporarily)
  - vanveenada 5y ago
    Correct, because nothing lasts forever in this fallen world. That said: the amount of time spent in a state of wage-driven inflation -- setting up the situation where temporary moments of price stickiness result in increases of effective demand that in turn hot up the economy as a whole -- is the thing we want to maximize.
    - ethanbond 5y ago
      Totally! We can also go ahead and tax away all the gains captured by landlords on the unimproved value of their land (definitionally price movement that is not due to them).
      - vanveenada 5y ago
        found the Georgist!
InitialLastName 5y ago
If your tenant moved out and a new one moved in, would you charge more? Macroeconomic shifts seem like they would be biased towards transient transactions, and resisted by steady-state.
- mostertoaster 5y ago
  Probably. Though the last time that happened I didn’t. The family had less income, so while I was losing more money now due to property taxes, my income had gone up so it was kind of a wash.
matsemann 5y ago
Becoming a landlord means more buyers for the same houses, thus pushing the housing prices instead, possibly taking them off the market for other's that want to own their own.
- mostertoaster 5y ago
  There will always be those who have and those who do not, the weak and the strong, the poor and the rich. The question is, will those with power (money, connections, education) use it to gain more for themselves or to lift up the poor. The idea that a homeless person’s problem is just, that they can’t afford rent or a mortgage is absurd, and would just prove that you’ve only ever dealt with homeless people at an abstract level.
  - matsemann 5y ago
    I never talked about homelessness. I had young renters in mind, wanting to buy but seeing the prices skyrocket away.
    - mostertoaster 5y ago
      Ahh I see. I’d probably consider selling my house cheaper to tenants if they’re good. Though I guess this is a little bit of the “to he who has more will be given, to he who doesn’t have, even what he does have will be taken from him”
ethanbond 5y ago
I am a landlord! Breaking the cycle is a farce: why do you think it’s a cycle? It’s self-reinforcing and resilient to small changes (like a few landlords here and there delaying rent increases for a few years).
- mostertoaster 5y ago
  Well have you charged less than market rate for rent? I had a place for 10 years that I was charging about 60% market rate on because the lady was old and lived off social security. I had negative cash flow on it. My other rental has a negative cash flow as well. I make good money so I can afford it. If every single person who complained about the plight of the poor actually physically went and helped the poor, their plight would be less, instead you do nothing and go vote for the politicians to do something. You wanna talk about a farce, how about this one - the politicians care about the poor. Talking to immigrant Uber drivers in SF, ironically they hate the government there and it reminds them of the corrupt ones in their own country, the one the “caring progressives” keep voting for.
  - Pokepokalypse 5y ago
    >the one the “caring progressives” keep voting for. And the alternative is what? Keep on hoping the oligarchs will share their wealth and it will "trickle down"?
    - jquery 5y ago
      It’s boggles the mind how one can look at the long arc of history and come to the conclusion caring progressives were the problem all along.
  - mindslight 5y ago
    You blew right past "It’s self-reinforcing and resilient to small changes". The two underlying problems here are zoning policy and macroeconomic policy (ZIRP), both only changeable through politics. Directly helping other individuals doesn't stop the overall trickle-up economy from doing its thing of skimming wealth upwards. Yes, you personally can alleviate some other individuals' suffering by not turning the screws as hard, and I agree that you should where you can. But it's foolish to think that the systematic problem could be solved by everyone just choosing to go against the gradient. Also I presume when you say "negative cash flow" you are leaving out the bit about your equity increasing due to mortgage payments and bubble inflation. So you can get off your performative high horse as well - you aren't describing a charity project, but rather an illiquid savings account.
caseysoftware 5y ago
How have your property taxes and/or insurance changed during that period? I have a rental (family living in it) where the insurance has changed a few percent in the last 5 years but the property taxes are up 5x. Yes, 5x in 5 years between the rate and appreciation. What started as a small net loss is getting bigger and bigger so I hope you're not in the same boat.
- mostertoaster 5y ago
  Property taxes have gone up, about double what they were. I just lose more money on my rentals, and to top it off I pay for private school, so don’t even get the benefit :/ I propose that all landlords start offering two lease agreements. One that is let’s say $2000/month, and another that is $1600/month plus whatever property taxes are, which happen to be $300/month currently. Then tenants might think twice before voting for higher property taxes since it will directly affect their rent instead of indirectly.

I haven’t raised my tenants rent since 2018 when I bought the rental. I just had him pay what he had been paying. Maybe you should be a landlord and help break the cycle?

vanveenada 5y ago

this is an example of "price stickiness." People selling goods tend to let the price stay at whatever level it's currently at longer than is strictly rational. Because prices tend to be sticky, wage-driven inflation tends to result in real gains for wage-earners.

ethanbond 5y ago
(Temporarily)
- vanveenada 5y ago
  Correct, because nothing lasts forever in this fallen world. That said: the amount of time spent in a state of wage-driven inflation -- setting up the situation where temporary moments of price stickiness result in increases of effective demand that in turn hot up the economy as a whole -- is the thing we want to maximize.
  - ethanbond 5y ago
    Totally! We can also go ahead and tax away all the gains captured by landlords on the unimproved value of their land (definitionally price movement that is not due to them).
    - vanveenada 5y ago
      found the Georgist!

InitialLastName 5y ago

If your tenant moved out and a new one moved in, would you charge more? Macroeconomic shifts seem like they would be biased towards transient transactions, and resisted by steady-state.

mostertoaster 5y ago
Probably. Though the last time that happened I didn’t. The family had less income, so while I was losing more money now due to property taxes, my income had gone up so it was kind of a wash.

matsemann 5y ago

Becoming a landlord means more buyers for the same houses, thus pushing the housing prices instead, possibly taking them off the market for other's that want to own their own.

mostertoaster 5y ago
There will always be those who have and those who do not, the weak and the strong, the poor and the rich. The question is, will those with power (money, connections, education) use it to gain more for themselves or to lift up the poor. The idea that a homeless person’s problem is just, that they can’t afford rent or a mortgage is absurd, and would just prove that you’ve only ever dealt with homeless people at an abstract level.
- matsemann 5y ago
  I never talked about homelessness. I had young renters in mind, wanting to buy but seeing the prices skyrocket away.
  - mostertoaster 5y ago
    Ahh I see. I’d probably consider selling my house cheaper to tenants if they’re good. Though I guess this is a little bit of the “to he who has more will be given, to he who doesn’t have, even what he does have will be taken from him”

ethanbond 5y ago

I am a landlord! Breaking the cycle is a farce: why do you think it’s a cycle? It’s self-reinforcing and resilient to small changes (like a few landlords here and there delaying rent increases for a few years).

mostertoaster 5y ago
Well have you charged less than market rate for rent? I had a place for 10 years that I was charging about 60% market rate on because the lady was old and lived off social security. I had negative cash flow on it. My other rental has a negative cash flow as well. I make good money so I can afford it. If every single person who complained about the plight of the poor actually physically went and helped the poor, their plight would be less, instead you do nothing and go vote for the politicians to do something. You wanna talk about a farce, how about this one - the politicians care about the poor. Talking to immigrant Uber drivers in SF, ironically they hate the government there and it reminds them of the corrupt ones in their own country, the one the “caring progressives” keep voting for.
- Pokepokalypse 5y ago
  >the one the “caring progressives” keep voting for. And the alternative is what? Keep on hoping the oligarchs will share their wealth and it will "trickle down"?
  - jquery 5y ago
    It’s boggles the mind how one can look at the long arc of history and come to the conclusion caring progressives were the problem all along.
- mindslight 5y ago
  You blew right past "It’s self-reinforcing and resilient to small changes". The two underlying problems here are zoning policy and macroeconomic policy (ZIRP), both only changeable through politics. Directly helping other individuals doesn't stop the overall trickle-up economy from doing its thing of skimming wealth upwards. Yes, you personally can alleviate some other individuals' suffering by not turning the screws as hard, and I agree that you should where you can. But it's foolish to think that the systematic problem could be solved by everyone just choosing to go against the gradient. Also I presume when you say "negative cash flow" you are leaving out the bit about your equity increasing due to mortgage payments and bubble inflation. So you can get off your performative high horse as well - you aren't describing a charity project, but rather an illiquid savings account.

caseysoftware 5y ago

How have your property taxes and/or insurance changed during that period? I have a rental (family living in it) where the insurance has changed a few percent in the last 5 years but the property taxes are up 5x. Yes, 5x in 5 years between the rate and appreciation. What started as a small net loss is getting bigger and bigger so I hope you're not in the same boat.

mostertoaster 5y ago
Property taxes have gone up, about double what they were. I just lose more money on my rentals, and to top it off I pay for private school, so don’t even get the benefit :/ I propose that all landlords start offering two lease agreements. One that is let’s say $2000/month, and another that is $1600/month plus whatever property taxes are, which happen to be $300/month currently. Then tenants might think twice before voting for higher property taxes since it will directly affect their rent instead of indirectly.