?

Log in

No account? Create an account
entries friends calendar profile It's Me Previous Previous Next Next
The cost of living goes up, up, up... - The Autobiography of Russell
Life from a different perspective
zimzat
zimzat
The cost of living goes up, up, up...
Why do landlords and rental management companies feel the need to raise the rent just because everyone around them is doing it? Why isn't cost + reasonable profit sufficient? This seems especially strange when they're not paying for any utilities and I doubt property costs are going up at anywhere near the rate of the rent. It's especially strange when I can walk out and see half a dozen places with signs hanging out for the past month of units available.

In a way raising the rent raises the value of the property which raises the property tax, so in a way they're feeding their own costs.

Worse yet it raises the cost of everything else in one terrible cycle. When rent is raised employees need to get paid more to meet the cost of living. When businesses have to pay employees more then the cost of goods go up. Money is a strange game. I'm not going to touch that one any more than I have to.

"Leaving money on the table" my foot. Any money left on the table gets spent on something else. People need to stop listening to these "Get Rich Quick" schemes.
4 comments or Leave a comment
Comments
mai_neh From: mai_neh Date: June 18th, 2013 12:00 am (UTC) (Link)
It sounds like you would be in favor of rent control laws :-)
zimzat From: zimzat Date: June 18th, 2013 12:15 am (UTC) (Link)
Possibly, though I'm not familiar with what all they entail to say for sure. Normally I'd say the market would fix this as less and less people would be able to pay the higher prices and then the prices would come down, but that can take a while to really impact realtors, we're already having a problem with housing prices, and developers have started introducing these multiple unit shared domicile rentals for the same as what was the lower end of the price range for a one bedroom a year ago. These days you pretty much need an Amazon/Google/Microsoft level salary to afford living vaguely in the city.

If we go for rent-control laws what's to stop us from going for X-control laws where X could be cars, gas, milk, toys, alcohol, furniture, computers, etc. I'm pretty sure we already have some of those, but I doubt more government control is actually the answer (that has a habit of getting perverted from protection to extortion). Rent-control laws could be used to squeeze the mom-and-pop realtors out of the business over time when the properties get too expensive for anyone other than larger management groups from purchasing. Oye.
mai_neh From: mai_neh Date: June 18th, 2013 12:33 am (UTC) (Link)
I used to think, when I was a renter, that landlords would raise rents every year regardless of market conditions, because they figured you would rather pay more than go through the hassle of moving. And then they offer incentives to new renters, like two months free rent, to compete with the market.
zimzat From: zimzat Date: June 18th, 2013 12:59 am (UTC) (Link)
I've heard that theory before as well. I've doubted it but then I think I've often voluntarily moved at the end of the lease anyway so I can't remember if they were rate-increasing anyway.

That, too, is a poor "Money left on the table" gimmick and a good way to game/bankrupt the system. Oye.

I don't see anyone offering two, one, or any incentive to new renters around here, though.
4 comments or Leave a comment