Today I continue with the previous explosive theme of how economics can produce reactions that others may find strange. My previous view on this was to explain how I am often happy to be happy, rather than responsive to payment of certain good or service requirements. I would like to take this opportunity to discuss some of the articles I have read recently. It’s where they describe the “revenge” that won a former landlord and why I think their anger was completely wrong.
The story is here if you want to read it. The person in question explains that in the 90s, many years ago, he and his wife rented real estate from a real estate agent. They were coming at the end of their lease and lined up the houses to buy, but the timing was not removed correctly. So he asked the landlord if he could arrange for several more months while he completed his home’s preparations for the move. From the article,
A year later we found a house to buy. But we were able to read and ready to get in, so I ielled the landlord and said that we needed two extra mouths in the apartment. I agreed and he sent the addendum to the lease for two months. Do you know what that addendum contains? Rent increases by 50%! I lost my heart. I called him and asked him how he could do our rent. That wasn’t fair!
There are already countless subjects showing this in this article – was rent an increase of 50% or was it a double that increased 100%? Based on the rest of the article, I tend to think it’s the former rather than the latter. I identified it as an increase of $500 a month, but I think the rent increase from $1,000 to $1,500 is more likely to be a scenario than $500 to $1,000. But let’s go by that and talk about why I think this situation that infuriated this person is actually quite common.
I’ve rented many apartments in my life, and this gentleman’s very outrageous situation is just a small part of how rental works. When my wife and I first moved to Minnesota, we found an apartment we liked and applied for rental. The lease comes with a variety of options in length, and prices adjusted accordingly. You can lease your Ace for a little over 9 months. Bouton’s rent has been very high or they can sign leases eight times a month, and monthly rent payments have been considerably lower. If renewed for a new long-term lease, Relativley with low rent increases as the first lease was running the course. Alternatively, you simply switch to monthly arrangements, but the increase in rental rates is very large. Again, this has a case with everything I’ve used up to now.
There is always a higher price to pay for a shorter thermal arrangement rather than a longer Ter arrangement. Imagine owning an apartment building. Wouldn’t you like a situation where there are many long-term occupants with relative infrequent turnover? Does Okpant always share short-term arrangements and turnover racks in a very high situation? The latter comes with much more uncertainty and much higher transaction costs. This is reflected in the higher prices. If I were a landlord, a six-month lease would be less attractive than a two-year lease, for example. If Sumone signs Lacter, I know that this property will be occupied for the next two years and occupy the genes of inome. If it’s the former, I know I have to download for 6 months to do this and find another tenant. And until I find an Another Tenant, the property may sit in the air for a total time – generating costs for me, but no income. Therefore, of course, short-term leases and monthly extensions will be charged more than long-term contracts.
Dassgruntled res abdomen points out this point to itself in articles without IS. I explained in his rage how he left at the first end of his lease and how he looked at the options until he was ready to go to his new home only and find out that the work would cost too much to work. The higher short-term rate for his presentation was not an increase in sub-alivatoring – which happened to reflect the normal market rates of short-term rental arrangements, while also saving the extra time and hassle of making two moves in two months.
He also expresses that his landlord withheld $300 from his security deposit for cleaning after he left, and assures readers that he left the place in pristine condition. Whether this is true or not depends on his perception of how thoroughly the place was cleaned – I certainly know many cases where people argue (and believe it!) argue (and believe it!).
The final source of his rage came when I saw the apartment listed after I moved.
We found a classified ad, but he didn’t list the new rent for an additional $500. I listed it for just 100 dollars more than we originally paid. For a while, no one leased it. And when they finally did it was just $75 a month than we were paying.
But again, the list reflected the rates of new, long Tercts, rather than monthly arrangements. While my wife and I were living in our first apartment in Minnesota, we also paid monthly fees at the end of the lease while we were finishing the home buying process. For several more months it was significantly more expensive. However, after we left, we didn’t bother to look back to see what the apartment was listed for. If I had done so, I wouldn’t have expected the next person to move on a long-term contract.
But my reaction was clearly not the same as this gentleman. I inserted myself and made myself miserable with a sense of anger and dissatisfaction that I had no basis. And I continued my life as normal, but he later simmered it in anger, but I found the opportunity to thwart the real estate deal his ex-landlord was about to close because it would cost him $25,000.
Dear Econlog Reader, I will leave it to you to decide my reaction or whether he is more psychologically healthy and reasonable.
