tag:blogger.com,1999:blog-5154389358831836369.post7068455295916568144..comments2024-03-29T06:09:37.749-04:00Comments on The Slack Wire: A Quick Note on Rent RegulationJW Masonhttp://www.blogger.com/profile/10664452827447313845noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5154389358831836369.post-66091208727108034452015-07-19T08:17:44.025-04:002015-07-19T08:17:44.025-04:00"The difference, of course, is that charging ..."The difference, of course, is that charging market rents doesn't (usually) result in apartments being left unoccupied, so there aren't the same kind of efficiency losses from enforcing perpetual property rights in apartment buildings that there are from perpetual copyrights. "<br /><br />tell this to Manhattan. Nathan Tankushttps://www.blogger.com/profile/16298104991209885385noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-26013052156705316882012-02-17T02:32:02.303-05:002012-02-17T02:32:02.303-05:00Of course if most of the value of structures comes...Of course if most of the value of structures comes from frequent renovations, then my argument doesn't apply. But that is just assuming away the existence of long-lived capital goods, and I don't think it's generally true.JW Masonhttps://www.blogger.com/profile/10664452827447313845noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-32988399726149460092012-02-14T17:14:21.388-05:002012-02-14T17:14:21.388-05:00Well here is a good article of rent control in pra...Well here is a good article of rent control in practice: http://mjperry.blogspot.com/2011/05/because-of-rent-control-sf-has-31000.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-86050481044088749612012-02-12T12:05:34.495-05:002012-02-12T12:05:34.495-05:00Rent now definitely wasn't included in the pre...Rent now definitely wasn't included in the present value calculations when the building was constructed, and maintenance/improvements were included in that or are separately covered by rent law.<br /><br />But what about major remodellings? Future rents (like yours) were included in NPV calculations when the landlord decided to go forward with a big renovation. I don't mean painting the halls or re-tiling, but more along the lines of re-doing the whole lobby and installing new, safer elevators and the like. Say there were 10 tenants in a building, and the renovation cost $1 million. Even recuperation by the landlord of those costs from existing tenants wouldn't come close to covering that cost. Those costs would be partially covered by the rent of future tenants - and assuming that rent didn't double or triple in the future, its reasonable to assume that some of the tenant's rent (ex increase) would be going to finance improvements. In that case, its not pure economic rent, really.Thomasnoreply@blogger.com