(03-27-2024, 08:10 AM)Sneakers Wrote:

(03-27-2024, 07:10 AM)The Real Marty Wrote: That's not exactly how it works.  The landlord doesn't have to hear the tenant has more money.  He just has to know there is someone out there who will pay more for the space.  He finds that out by looking at the rent on other properties.

It doesn't appear that either of you have any firsthand experience with rental properties.  First of all, it's important to distinguish between residential and non-residential units, before drawing any conclusions.  

There are such things as contracts and a landlord cannot legally increase the rent "the moment the landlord hears the tenant has more money".  Also, not all landlords are focused on squeezing the last possible dollar out of a rental.  The generalization is simply not accurate.  Many prefer sacrificing somewhat for the advantages of stable, long-term tenants, who are far less trouble.  

Yes, there is a housing shortage just about everywhere across the country, but that is completely a factor of quantity, not price, and it will be years before supply catches up with demand.

Yes, particular landlords may perceive their self interest a little differently.  But in the aggregate, if you need something, and there's a shortage of it, and I have some, I can charge whatever you're able to pay, which will typically be a hefty profit for me.  Again this stuff dates back to Adam Smith and David Ricardo.

As for timing, every month rental contracts expire, need to be renewed, new households form, etc. Every month. Price increases happen on the margin for the new market entrants. Just because your tenants are in long term deals and you can't immediately take advantage doesn't mean there aren't renters out there paying the new higher rates.

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