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There are also tax benefits to keeping rent high. Essentially you can write off the profit of one property with the "loss" of the other. The amount of "loss" is
by ttt3ts 3y ago
There are also tax benefits to keeping rent high. Essentially you can write off the profit of one property with the "loss" of the other. The amount of "loss" is usually the last rent price. There are caviats of course.
- nradov 3y agoI think you have a misunderstanding of income tax law. In the US at least, failure to receive rental revenue isn't considered a loss for tax purposes. The last rent price has zero relevance for income tax accounting. Commercial property owners can generally deduct expenses like security, maintenance, utilities, etc but that's separate from rent or lack thereof.
- ttt3ts 3y agoThanks for correction.