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I think its important to distinguish the types of landlords. I rent my house, and the owner is just an old couple across the street. Those two are not part of t
by galleywest200 3y ago
I think its important to distinguish the types of landlords. I rent my house, and the owner is just an old couple across the street. Those two are not part of the problem.
Now the property management company doing the lease paperwork for the couple, now they are part of the problem.
- dragonwriter 3y agoIf the landlord wasn’t part of the problem, they wouldn’t wouldn’t be delegating management to a management firm that is (there may or may not be management firms that aren’t, but there are definitely landlords that manage properties themselves that aren’t.)
- yieldcrv 3y agoyour landlord across the street isnt the strongest counterargument actually those are the local forces gambling on the highest possible rent - which they could have done anytime whether richer people were in town or not - , and attention should be directed at them to alleviate price pressures
- noduerme 3y ago>> attention should be directed at them to alleviate price pressures Why is that the responsibility of small landlords who rent out a spare bedroom or second house? That's like saying it should be on independent gas stations to alleviate high oil prices.
- yieldcrv 3y agoIts not the responsibility, its an observation that they are more susceptible to peer pressure while having been largely overlooked as a contributor to housing price pressure
- noduerme 3y ago>> more susceptible to peer pressure This implies that one should pressure people to the degree that you can pressure them, rather than to the degree that they're in the wrong. Which is pretty unjust.
- yieldcrv 3y agoI'm not familiar with that reading of it, and I have no opinion on the existence of that side effect. My observation is that they have an outsized influence on housing price pressure, while they currently fly under the radar from local disdain about the influences on housing price pressure.
- amw 3y agoIndividual landlords can be moral, upstanding people, and the incentive structure around deriving your income from rents can systemically produce inhumane outcomes. They are not mutually exclusive.
- noduerme 3y ago>> the incentive structure around deriving your income from rents can systemically produce inhumane outcomes It's also the only thing that produces new construction. Properly regulated and harnessed, the incentives are necessary to draw capital to building.
- joshlemer 3y agoExactly! And also the rest of the benefits of speculation apply to housing just as much as anything https://en.wikipedia.org/wiki/Speculation#Economic_benefits https://en.wikipedia.org/wiki/Speculation#Economic_benefits Namely, real estate investors provide liquidity to the market, bringing price stability and absorbing risk from developers and homeowners.
- eric-hu 3y agoFrom that same section, though: > On the other hand, as more speculators participate in a market, underlying real demand and supply can diminish compared to trading volume, and prices may become distorted.[8]
- noduerme 3y agoNote that I said "properly regulated and harnessed". The creation of bubbles is a temptation for both speculators and governments. Specifically, derivatives and futures based on real estate should be treated by governments as toxic / illegal speculation. In fact, banning bad money from bubble-making practices amplifies the incentive for small landlords to improve and build living space on property.
- 3y ago