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It is a mistake to ignore the power imbalance between landlords and tenants, especially when the landlord is a business. Sure you can argue that the market is o
by runarberg 4y ago
It is a mistake to ignore the power imbalance between landlords and tenants, especially when the landlord is a business. Sure you can argue that the market is out of equilibrium which causes this inflation in rent, but to say that is the only reason is a blatant oversimplification.
Rich landlords will keep overcharging for rent as long as they are able. And more buildings just gives them more opportunities to exploit more renters. That is unless the renters strike or the government enforces rent control.
- ericd 4y agoIf developers build at a faster rate than new renters want to move in, the rent will decrease, because it will again become a competition between landlords to try to reduce their vacancy rate, for the same reason they're currently increasing rent - revenue maximization. Vacancies represent a lot of lost revenue. Please, don't agitate for more rent control, it's such a bad idea.
- runarberg 4y agoLike I said, this ignores the power imbalance. A business has far less to loose by letting an apartment go vacant for a while, then a renter has by living on the street for even a week. This becomes even more true as the business has a larger portfolio and more assets to devalue. It is in the common interest of all landlords to keep the rent high, so if they are able to sink the cost of keeping an apartment vacant, they will do it if it means that that cost will be realized as profit in their non-vacant units. Tell me, why do you think rent control is a bad idea? For me it seems only bad if you are a landlord.