My “favorite” is when you get a rent increase despite overall dropping rents. The landlord would rather risk vacancy AND lower rent from the next tenant for the pure joy of inconveniencing you with a move.
I lived at a place many years ago, and the landlord wanted to increase the rent from 900 to 1300. Which was just a fantasy number for the area. I countered with 1000, because moving is a hassle and it was an ok place. They said no, so we moved.
Then the place was vacant for years afterwards. I always chuckled when I walked past it. Great job, instead of getting a steady income, you try to gouge your tenant and get nothing! Art of the deal level right there.
Whilst for some it might just be the inertia of “I increase the rent every year”, for many it will be a careful calculation, assuming that staying in the same place has an increasing value to you over time. It also helps with the overall dropping rents “problem” by helping to increase the average, and encourage other landlords to do the same.
I’m not convinced that landlords’ collusion to fix the cost of rent is the “careful calculation” that you’re describing. From my perspective, it’s quite the easy choice for them to extract more money instead of less money.
I only potentially benefit from an overall market reduction in rent (which rarely occurs) if I move to a new apartment because they refuse to negotiate a lease renewal at a lower rate.
My “favorite” is when you get a rent increase despite overall dropping rents. The landlord would rather risk vacancy AND lower rent from the next tenant for the pure joy of inconveniencing you with a move.
I lived at a place many years ago, and the landlord wanted to increase the rent from 900 to 1300. Which was just a fantasy number for the area. I countered with 1000, because moving is a hassle and it was an ok place. They said no, so we moved.
Then the place was vacant for years afterwards. I always chuckled when I walked past it. Great job, instead of getting a steady income, you try to gouge your tenant and get nothing! Art of the deal level right there.
Whilst for some it might just be the inertia of “I increase the rent every year”, for many it will be a careful calculation, assuming that staying in the same place has an increasing value to you over time. It also helps with the overall dropping rents “problem” by helping to increase the average, and encourage other landlords to do the same.
I’m not convinced that landlords’ collusion to fix the cost of rent is the “careful calculation” that you’re describing. From my perspective, it’s quite the easy choice for them to extract more money instead of less money.
I only potentially benefit from an overall market reduction in rent (which rarely occurs) if I move to a new apartment because they refuse to negotiate a lease renewal at a lower rate.
No. They don’t collaborate.
Don’t misunderstand your enemy, folks. They’re selfish, like Donald Trump.
Sure.
Uh. My dude, they do in fact collaborate.
It works.