Re:California Approves Statewide Rent Control
by halflings on Wednesday September 11, 2019 @09:30PM
(#20946775)
Isn't OP saying they are doing this because of rent control? (e.g not being able to change rent selectively, only able to constantly increase rent?)
Re:California Approves Statewide Rent Control
by kd0amg on Wednesday September 11, 2019 @09:35PM
(#20946815)
Specifically, it's an attempt to hedge against the possibility of the market rate increasing by more than 7% in a year.
Re:California Approves Statewide Rent Control
by tathougies on Thursday September 12, 2019 @10:27AM
(#20951811)
The entire market is going to do this. Legalizing a 7 percent increase basically means mandating the entire market move at this rate.
Is the property management company collecting an extra commission each time a new tenant moves in? Because all this strategy is going to do is let tenants quit once the rent goes considerably above the market rate.
A much wiser strategy, IMO, would be to watch the market rates and keep the existing tenants' rate constant until the market rate climbs considerably higher (7% sounds like reasonable threshold) and then raising it to be marginally below the market, incentivizing the tenant to stay.