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>What you're missing is that the market floor get universally pushed up. There's no competition from cheaper places because they all increased their rent to cov
by pydry 5y ago
>What you're missing is that the market floor get universally pushed up. There's no competition from cheaper places because they all increased their rent to cover the new coat so they can still make their same margin.
You're saying that it doesnt matter if supply and demand remains unchanged, rent goes up coz every landlord independently decided that it does?
- giantg2 5y agoNot that they decided it does, but generally that they all had to in order to stay profitable. Part of this is due to the othwr commenter's suggested goal that the rise in rates be significant enough to demotivate rich people. Here is some research on commercial properties, which would in theory be more competitive than residential. It shows that 80-90% of any tax increase is covered by an increase in rent. https://mitcre.mit.edu/news/blog/can-landlords-really-pass-higher-property-taxes-tenants https://mitcre.mit.edu/news/blog/can-landlords-really-pass-h... And of course many landlord resources say to just build it in. "The best way to protect yourself from taking a hit is to plan ahead. Plan for a tax increase every single year and adjust your rents accordingly. Build the tax increase into your rent and allow for future rent increases. A planned annual rent increase will allow you to stay ahead of tax increases instead of being caught off guard and behind." https://commonsenselandlording.com/property-taxes-rental-property/ https://commonsenselandlording.com/property-taxes-rental-pro...