06-03-2021, 09:40 AM
(06-03-2021, 08:56 AM)Bytor Wrote:(06-03-2021, 08:00 AM)ijmorlan Wrote: Isn’t a shortage of rental housing one of the issues we supposedly have in this city? If rental apartment buildings are good I can’t see how having many units in a condo building be rental can be bad.
Corporations as landlords can rely on economies of scale, so to speak, for a lower profit margin and thus smaller increases. Joe Schmoe investor, on the other hand, wants the excessive increases to fund their upper middle class retirement. I mean, something's gotta pay for 6 months in Florida every year, right? People like Joe Schmoe donate to their favourite politicians and bend their ear in order to prevent any legislation that would curtail the situations like we're in now. The Corporate landlords, while they don't need the excessive increases, so they aren't quite as motivated to lobby for them, aren't going to complain about them, either.
Actually, I believe that many condos that are being rented are cash flow negative for their owners, and often negative enough that the owner's equity in the unit is not increasing. Instead, the owners are fully dependent on future property value increases for their profit. So, there isn't necessarily a greater investor profit, but the condo buildings tend to be more expensive to start with than rental buildings.
I fully support building sufficient rental housing that there will be less need for condo unit rentals, but those can still fill in some gaps in the market. Recent and upcoming rental stock looks good, though: The Scott, 66 Civic, Arrow 2, Drewlo, Market Flats, Ophelia in DTK alone.