It will rise to the level where the supply and demand curves meet, modulo market uncertainty and information imbalance.
I’ve rented several places that listed “no pets,” and after telling them I’d pay an extra $200 per month or whatever because I had two 75lb pit bulls, no one even blinked. If they had originally thought they could get away with charging the extra $200 and people would snap it up, they would have.
Most people renting houses do not do sufficient due diligence on market rates, and there’s enough variability in both housing and tenants that it’s probably a bit difficult to price ideally. If you have a large enough company that you can write some kind of statistical analysis and are renting similar/identical places in the same building, that’s one thing. If you’re a new buyer just purchasing a second house to rent over on 2nd Street because it’s $800k and you think you can cover the mortgage in rent after looking at Zillow, that’s something else.
That has been true historically, I’m not so sure now. They have started using algorithms. There’s some sort of Zillow type shit for landlords that monitors every market and is helping them price gouge, market fix, and pluropolize. Thank fuck I don’t have to worry about that
It will rise to the level where the supply and demand curves meet, modulo market uncertainty and information imbalance.
I’ve rented several places that listed “no pets,” and after telling them I’d pay an extra $200 per month or whatever because I had two 75lb pit bulls, no one even blinked. If they had originally thought they could get away with charging the extra $200 and people would snap it up, they would have.
Most people renting houses do not do sufficient due diligence on market rates, and there’s enough variability in both housing and tenants that it’s probably a bit difficult to price ideally. If you have a large enough company that you can write some kind of statistical analysis and are renting similar/identical places in the same building, that’s one thing. If you’re a new buyer just purchasing a second house to rent over on 2nd Street because it’s $800k and you think you can cover the mortgage in rent after looking at Zillow, that’s something else.
That has been true historically, I’m not so sure now. They have started using algorithms. There’s some sort of Zillow type shit for landlords that monitors every market and is helping them price gouge, market fix, and pluropolize. Thank fuck I don’t have to worry about that