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now that the private equity guys have figured out how to cost effectively manage the properties Anyone renting from one of this big corporations knows that thi
by vanilla_nut 4y ago
now that the private equity guys have figured out how to cost effectively manage the properties
Anyone renting from one of this big corporations knows that this game can only go on for so long with this "cost effective" management. Pretty much every apartment I've rented from a big soulless corporation has had insect and rodent problems, dripping ceilings, poor ventilation, mold problems, and a whole lot more. When you build cheaply, maintain lazily, and extract as much profit as possible, you're effectively destroying the rental unit in the long term for short term gains. At some point these buildings will literally collapse due to poor maintenance. I can only hope that the government fights lobbyist attempts to "step in and correct the situation" with massive corporate bailouts.
- quantified 4y agoFor PE the building decay isn't a problem. They will have extracted a profit over time and there will be new buildings to move to. It's a harvesting/consuming model more like a carnivore than a producing model like a plant.
- nr2x 4y agoYou left out the housing shortage. In a market with no other options you can make people leave in filth if the only other option is living in their car. The more property you buy up and let decay, the higher rents you can charge.