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Rent controls are an attempt to prevent landlords from acting opportunistically. Since increasing rents under such conditions is generally considered “taking advantage” of a tenant, “eficiency is deliberately sacrificed in favor of fairness,” resulting in rent controls (ho 1992, 1184).
Tenancy rent control, which is a special case of what is known in the literature as “second-generation rent control,” allows landlords to freely choose a nominal rent when taking on a new tenant (the tenant is of course free to reject the offer), but places restriction on raising rents
25 Δεκ 2001 · We consider a rent control regime where rent increases on, and eviction of, a sitting tenant are forbidden. When apartments become vacant landlords may negotiate new rents. If inflation exists, landlords prefer to rent to short‐staying tenants.
Within this context, this chapter covers the basic economic principles that govern the functioning of urban real estate markets. As such, it first reviews the fundamental concepts of demand, supply, prices, and price adjustments, then expands on how they apply to real estate, and finally elaborates on their relevance to market analysis.
5 Φεβ 2020 · • Need a broad definition of utility. • There may be important deviations from simple optimizing behavior for some individuals. • Firms may need to think about customer relationships in figuring out how to maximize long-run profits. • But basic insights and implications of utility and profit maximization likely still hold.
11 Σεπ 2020 · This article seeks to develop a composite picture of the defining features of leases and why leasing is such a widespread and highly successful economic institution.
11 Σεπ 2020 · This article seeks to develop a composite picture of the defining features of leases and why leasing is such a widespread and highly successful economic institution. The reasons fall under three general headings.
