Posted by Sir Loving on June 12, 1997 at 03:18:28:
The big landlord groups don't want to unfairly, raise rents right away. First, they want to make sure the rent laws become nothing but history.
Rent regulations (a stumbling block for big landlords) prevent rents from going through the roof for everyone because of the following:
History has shown us that, in the past, big landlords have been known to warehouse vacant apartments instead of putting them back on the market. This unfair action on the part of big landlords caused laws to be passed that limit the amount of apartments a landlord can warehouse to 10% of their vacant housing stock. In effect, these laws prevent big landlords from unfairly reducing the supply of apartments in order to drive price sky high.
The elimination of existing rent regulations would allow big landlords to side-step warehousing regulations by allowing them to take affordable apartments off the market simply by setting their prices at very high rates. This will certainly cause a shortage of affordable apartments and every tenant in the middle class along with our poor people will be forced to vacate the city or pay unfair amounts for the few remaining apartments left on the market.
Without a doubt, these big landlords have enough financial resources to keep this practice going indefinitely. As a practical matter, they only need to sustain this long enough until they can unfairly control public offices. Under those circumstances, it will be only a matter of time, before they become permanently dominant and control, not only the supply, but also the price of the entire housing market.
Windfall profits from bringing regulated apartments to market levels will be small potatoes. Big landlords know that control of the marketplace is the name of the game.
The big profits will go to the few who presently have, and have the resources to build, massive apartment complexes. After everything is done, small homeowners, of limited resources will be left to ponder what happened and why they're still no better off than they were before. Tenant voices will become a non-issue.
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