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Because they calculate they are more willing to do that than the tenant is willing to move. It only costs them a month or two of the difference in rent they are
by jm4 3y ago
Because they calculate they are more willing to do that than the tenant is willing to move. It only costs them a month or two of the difference in rent they are going to charge a new tenant. They still make thousands more in the end.
Meanwhile, the tenant has to pay more money to move than it costs the landlord to rent the place again. The landlord knows they so they offer an extension at an increase of about the same amount it would cost to move.
They are betting they can do absolutely nothing and make more money. Even if they lose that bet, they still make more money.
There is zero downside when there is high demand for housing and other landlords are doing the same thing.
- rubyfan 3y agoI think this is the exact reason why government should intervene - the market solution doesn’t work. Unfortunately so many government policies are working to make housing scarce and creating the problem in the first place.
- jm4 3y ago100%. This doesn’t get fixed otherwise. It’s predatory. It’s basically the storage unit model applied to housing.
- GauntletWizard 3y agoThe Market solution is working. The fools who are willing to put up with this behavior and the Bay Area are being parted with their money. It is not long-term pain - It is short term pain repeated many times by many fools.
- pauldenton 3y agoGovernment is how we got into this mess by limiting the supply of housing through zoning. Allow people to build up the unit in their backyard or in their garage and you'll unlock a whole new section of housing supply that will drive the bottom of the market down
- gehwartzen 3y agoIt's the same with jobs in most areas that aren't big cities or tech hubs; it's a huge pain in the ass to switch jobs if you aren't in a super high demand field. Often requiring a substantial uprooting and move. Lots of uneven sectors where huge portions of individuals loose to "market forces".