Yep with the exodus, you’ll have a glut of apartments without tenants. You don’t raise your prices in that situation, you lower them because a lower amount of rent is better than nothing. I’m friends with an apartment manager; yes we talk shop, this is what actually happens.
When was the last time your friend dealt with the government arbitrarily removing 5%-10% of the rental population from the market as a whole?
Normally if you have a lot of vacancies, it’s because other places are more attractive. In this situation it’s because of an arbitrary market distortion.
A better example is looking at university towns where the student population is comparable to permanent residents. In those situations you often see rental companies raise costs during the summer. When the students are on their way back for the next year, prices come down to increase appeal.
Yep with the exodus, you’ll have a glut of apartments without tenants. You don’t raise your prices in that situation, you lower them because a lower amount of rent is better than nothing. I’m friends with an apartment manager; yes we talk shop, this is what actually happens.
When was the last time your friend dealt with the government arbitrarily removing 5%-10% of the rental population from the market as a whole?
Normally if you have a lot of vacancies, it’s because other places are more attractive. In this situation it’s because of an arbitrary market distortion.
A better example is looking at university towns where the student population is comparable to permanent residents. In those situations you often see rental companies raise costs during the summer. When the students are on their way back for the next year, prices come down to increase appeal.