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Landlords don't increase rents to "cover losses". That's not a real thing that happens. Rents are set at the market rate, with some variance and time lag for pr
by nradov 1y ago
Landlords don't increase rents to "cover losses". That's not a real thing that happens. Rents are set at the market rate, with some variance and time lag for price discovery.
- esseph 1y agoCommercial is in crisis https://www.jimersonfirm.com/blog/2025/02/the-approaching-commercial-real-estate-financial-crisis-a-looming-threat-for-lenders-and-borrowers/ https://www.jimersonfirm.com/blog/2025/02/the-approaching-co... I spent 3 years renting a commercial property that subsidized the rest of the property locations. As soon as my business left, the building and rest of the tenants were gone within 3 months. It's now vacant, and has been for 2 years.
- rightbyte 1y agoIn many cases rent is set to prop up the value of the house to match the loan, not to match any market rate. I.e. rather empty to not break the silent understanding with the bank than too make money. Remember the stock is the product not the leases.
- nradov 1y agoNo, that's not how it works. You're just making things up. There's no such thing as a "silent understanding" with a bank. Either that's a covenant in the loan terms or it's not.