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But what the really, ACTUALLY charge is usually the MADE-UP RENT.
Only in a stupid "Rent Control" business environment do you have 2 types of rents to further confuse matters. Yet another reason why Rent Stabilization/Rent Control should be abolished.
All you need is 1 rent and 1 rent only...the market rent. Let the market dictate what the rent price will be for a specific area. It works so well in the rest of the 99.9% of the country.
Facts are facts, Manhattan rent will always be higher than say Bronx rents. Why? Because that's how the market is. I would love to charge Manhattan rents in my Bronx building and making a killing, but I CAN'T!
Why? Because no one is willing to pay those high rent prices in the Bronx. It's like trying to get blood out of a stone. It ain't happening. I would have to lower my rent price to what people in the Bronx are willing to pay.
That's how a FREE MARKET environment works. I, as a landlord do NOT make up rent prices out of thin air. The free market tells me what to charge.
I AM A SLAVE TO THE FREE MARKET. DESPITE MY BEST EFFORTS TO WANT TO CHARGE INSANELY HIGH RENTS, THE MARKET WILL ULTIMATELY BRING ME DOWN TO EARTH AND TELL ME WHAT TO CHARGE. THE MARKET IS MY BOSS, NOT ME.
Knowing those facts, it boggles the mind as to why Rent Stabilization/Rent Control exist in NY. It's a HUGE disservice to Tenants.
I AM A SLAVE TO THE FREE MARKET. DESPITE MY BEST EFFORTS TO WANT TO CHARGE INSANELY HIGH RENTS, THE MARKET WILL ULTIMATELY BRING ME DOWN TO EARTH AND TELL ME WHAT TO CHARGE. THE MARKET IS MY BOSS, NOT ME.
So .... where (or who) is this phantom "market," anyway ?
Oh, that's right. Invisible hand and all. Objective. Value free. Always does the right thing, and benevolently so. The great equalizer.
Wait. Weren't those ideas developed in the EIGHTEENTH CENTURY ?!
Only in a stupid "Rent Control" business environment do you have 2 types of rents to further confuse matters. Yet another reason why Rent Stabilization/Rent Control should be abolished.
All you need is 1 rent and 1 rent only...the market rent. Let the market dictate what the rent price will be for a specific area. It works so well in the rest of the 99.9% of the country.
Facts are facts, Manhattan rent will always be higher than say Bronx rents. Why? Because that's how the market is. I would love to charge Manhattan rents in my Bronx building and making a killing, but I CAN'T!
Why? Because no one is willing to pay those high rent prices in the Bronx. It's like trying to get blood out of a stone. It ain't happening. I would have to lower my rent price to what people in the Bronx are willing to pay.
That's how a FREE MARKET environment works. I, as a landlord do NOT make up rent prices out of thin air. The free market tells me what to charge.
I AM A SLAVE TO THE FREE MARKET. DESPITE MY BEST EFFORTS TO WANT TO CHARGE INSANELY HIGH RENTS, THE MARKET WILL ULTIMATELY BRING ME DOWN TO EARTH AND TELL ME WHAT TO CHARGE. THE MARKET IS MY BOSS, NOT ME.
Knowing those facts, it boggles the mind as to why Rent Stabilization/Rent Control exist in NY. It's a HUGE disservice to Tenants.
As a student of business, I understand the above and do realize that rent stabilization/control puts a bit of a wrinkle in that.
However, as a tenant in NYC, I don't like the thought of having to move as my rent suddenly went up by $500-$1,000 a month (I've had a few friends that this has happened to, not a ton, but more than a couple) because the rental market has changed. I understand the alternatives (move, buy a place if you can afford it), but that's also why I was happy to land in an apartment I love that happens to be rent stabilized... I can pay my rent on time, be a good tenant, and love the place I live, knowing that the rent will modestly and predictably increase. I can plan for that. The wild swings are harder to plan for as a tenant and I'd be distraught to leave a place I love due to that.
The purpose of rent stabilization is to protect tenants from caprisious landlords.
We as a society have determined that disruptions in tenants lives by having to move against their will is too high a price for landlords to raise prices as they please and to withhold lease renewals because tenants aren't repsectful enough, the right color, too stupid, too smart or any number of other silly criteria.
The rent stabilization system puts landlords and tenants on more of an even keel even if it diminishes the LORD part of landlord.
If Adam Smith doesn't like this, he is, of course, free to go f**k himself.
If Adam Smith doesn't like this, he is, of course, free to go f**k himself.
The thing people do not understand: Adam Smith himself cautioned strongly against many of the tendencies that define the current "free market" - it is almost as though he anticipated the potential disasters.
That said, just the fact that his ides arose in a world very very different from our own should give people pause. But, no.
So .... where (or who) is this phantom "market," anyway ?
Oh, that's right. Invisible hand and all. Objective. Value free. Always does the right thing, and benevolently so. The great equalizer.
Wait. Weren't those ideas developed in the EIGHTEENTH CENTURY ?!
Harlem...you need to educate yourself on how a free market business environment works. Why is it that McDonalds doesn't charge $20 for a #1 combo? I mean, afterall charging $20 would increase their profits right? So for "greedy" businesses that only care about the bottom line, charging such a price would be a no-brainer right? So why don't they do it Harlem?
All American school kids get it hammered into their heads that price controls are COMMUNIST and NEVER WORK. But it is not so. Every country with a functioning health care system has extensive price controls on health care, for example.
In the case of rent controls, the interests of the owning class (small minority) must be weight against the interests of everyone else.
The purpose of rent stabilization is to pay cheap rentunder the disguise to protect tenants from caprisious landlords and to strip them of their natural property rights that they are entitled to by the Constitution.
We as a LIBERAL and DEMOCRATIC society in NYC have determined that disruptions in tenants lives by having to move against their will is too high a price for landlords to raise prices as they please and to withhold lease renewals despite us tenants not having title to the property, because tenants aren't repsectful enough, the right color, too stupid, too smart or any number of other silly criteria. Afterall, all those thing I mentioned above aren't protected classes under Housing Discrimination. Right?
The rent stabilization system puts landlords and tenants on more of uneven keel even if it diminishes the LORD part of landlord.
All American school kids get it hammered into their heads that price controls are COMMUNIST and NEVER WORK. But it is not so. Every country with a functioning health care system has extensive price controls on health care, for example.
In the case of rent controls, the interests of the owning class (small minority) must be weight against the interests of everyone else.
Such a socialist view. Ok fine. So if the free market is evil, what alternate business environment do you suggest? Communism?
All American school kids get it hammered into their heads that price controls are COMMUNIST and NEVER WORK. But it is not so. Every country with a functioning health care system has extensive price controls on health care, for example.
In the case of rent controls, the interests of the owning class (small minority) must be weight against the interests of everyone else.
Exactly. Smith, like all Enlightenment thinkers, thought rationalism could and should work in favor of the common good. The problem is, this has become things working in favor of the few and vastly moneyed.
And in answer to Hilltop's question - well, I think you either get the critical thing or you don't.
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