The idea of setting a fixed definition for a ‘reasonable’ rent increase proposes more than a simple limitation. When such increases are defined, landlords lose the ability to act on personal judgment and choose individual actions. Rather than negotiating based on a tenant’s reliability or tenure, landlords are compelled to adhere to a set standard.
A recent observation highlights how this affects small landlords in New York City. Considerations such as personal rapport with tenants and flexible management have long been characteristics of smaller operation models. Some landlords have chosen to refrain from frequent rent hikes for tenant stability and goodwill.
The constraints posed by a standardized system may erode these relationships. Removing the ability to individually assess each tenant’s situation can lead to a less personalized approach to property management. Furthermore, the standardized model motivates landlords to align with legal allowances rather than maintaining previous strategies of flexibility.
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