5 ms·
How long does it take for landlords in the area to realize that there's an extra $500/mo to be had?
by JonFish85 13y ago
How long does it take for landlords in the area to realize that there's an extra $500/mo to be had?
- nerfhammer 13y agoAssuming there's more than one landlord they will capture some of the value but not all of it. E.g., they would be incentivized to raise rents $500, but then one of then could get more business by only raising it to $450 letting the employee capture $50 a month, and so on and so forth.
- Jormundir 13y agoThis reasoning is based on false circumstances. SF has a landlord's market, so they have no reason to shave the price for more business, but they have ample reason to raise the price to extract as much value out of the property.
- asdfologist 13y agoBy your reasoning, every landlord can raise their rent by an infinite amount and maintain at least the same revenue.
- Avshalom 13y agohave you seen the rent increase graphs; they're in the process.
- nerfhammer 13y agoOnly if the number of zenpayroll employees willing to live in that neighborhood > number of available apartments in that neighborhood