[quote=spdrun]Why? The landlords are providing a service, in the form of maintenance and flexibility (you’re not tied down by a property that you own if you don’t want to stay in a given place for years on end). For providing that service, we should be entitled to a profit.
Or do you also subscribe to the horseshit that supermarkets are “monopolizing a basic necessity” by selling food at a profit? Or how about car leasing agencies, that “monopolize transportation?” Yep. Clearly.
As far as tax revenues — if most properties are forced back into owner occupancy, then revenue increase will not be as predicted since the mix of properties will have changed.[/quote]
All too often, the landlords expect the renters to pay for maintenance. Not only do they often withhold deposits for regular wear and tear, you can even read threads here where the LLs are trying to get the renters to pay for pest control, new flooring, etc., even when the renters are not liable for it. If LLs are making a profit after all costs, then it’s the renters who are paying for all the maintenance, insurance, taxes, etc., even if they are paying it indirectly.
Given the choice, most people would prefer to own their own homes vs. rent. The #1 reason most people in Southern California rent is because there is not enough for-sale inventory to buy, and this pushes priced up beyond what they can afford, especially when 20% down payments are required.
While **some** rentals are useful for when people need flexibility, the majority of California’s housing units are owned by “investors.” This constrains the supply of “for sale” housing, which is a huge negative for society, IMHO.
If someone wants to provide flexible, nicely maintained housing for rent, let them build it; they should not be allowed (encouraged, even!) to monopolize existing inventory, especially when taxpayers are subsidizing them via govt-backed loans, tax deductions, subsidized property taxes, etc.
————-
As for comparing housing to food or cars, land supply is fixed and easily monopolized whereas food and cars can be produced all day long. That being said, if one company (like Monsanto, for instance) were to try to monopolize our food supplies, you’d better believe there would be hell to pay.
