• RustyEarthfire@lemmy.world
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    7 months ago

    I guess the argument is that they will raise rent by the maximum, even at excessive risk of losing tenants? Because if the tenants will pay that much, why wouldn’t the landlord charge that anyway?

    • jordanlund@lemmy.world
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      7 months ago

      Yup, it incentivizes the landlords to maximize increases.

      I bought a house in October of '21, I had been renting an apartment for $1,800 a month. My mortgage is just over $2,000 and is locked in for 30 years.

      I looked up my old apartment for funsies recently… $2,300 a month.

      Which tracks…

      $1,800 in 2021. 2022 - 9.9% increase +$178.2 = $1,978.2
      2023 - 14.6% increase +$288.82 = 2,267.02
      2024 - 10% increase +$226.70 = $2,493.72