“Rents Spiraling out of
control “
According to the article the rent has been
increased by the landlords, the table in the article shows how every region has
increased. in this situation a rent ceiling is been occurred and its below what
people can afford , a rent ceiling is not fair as it doesn’t benefit the poor
or the young people who are trying to look for an apartment or those who came from
abroad to live in the U.K for either a job residence or higher studies plus
this will hardly have no effect n people live in the rental apartment for quite
some while and those who bought
themselves houses instead of renting , not all people can save up for buying
houses as the rental was easier to find and was much cheaper than this. With
plenty of property being build the demand increases .
When owners plan to increase their prices
this not only has an effect on the tenants but landlords also as they have a
fear of confronting their tenants on what will be there reaction they can’t afford to get tenants mad because if this becomes a
problem between the landlord and tenant , tenant ends up leaving the
apartment , this more like they have a
fear of dealing with tenant , tenants are like friends to landlords and they
wouldn’t want to ruin their relationship , there is always this period where
landlords need to raise their prices , its not a pleasant subject from a
tenants point of view but this must be overlooked also as food and other goods
are being increased , landlords should increase their prices once in a while
even if it’s a small amount but there should an agreement done by the landlord
and tenant when the tenant first moves in , because a sudden increase will
offend the tenant and this will lead to a bad and unhealthy argument , prices
can’t just be raised ,but keep in mind
that there are people who earn so low , they should take in to account on how
this will leave an impact on them , if
this happens and people have no choice other than to leave the rental this will
put a lot of people in the streets .
Obviously the landlords have reasons on why
the rent should be increased , this is because either the government has raised
their taxes and has affected their income and prices of goods have been
increased as well , the owner or
landlord might have to provide a good property maintenance , the price might also be increased because
the tenant is not paying up the rent on time and is not respecting the
landlords rules or maybe the owner
decides that he the wants the tenant to leave and suddenly rises the price of the rent .
The rent always depends on three things
which are the rental market which depends on how the market changes and if the
rent should be increased or lowered , the quality of the tenant also matters as
if the tenant is good the landlord tend
to make the increase of price at a minimum rate satisfying the tenant and the
landlord himself and telling the tenant that they are valued and welcomed to
stay and that they did everything they could to keep the payment minimum and then the
tenant is grateful that the increase wasn’t that high this only happens when
the tenant is wonderful but if the tenant wasn’t the increase tends to be much higher.
The better a tenant feels about the house , the
happier they are going to be I
personally suggest making easier for your tenants to pay the rent on time and
online and submit maintenance problems and request them through a 24 hour
system that ensures their request are being handled and received
.today tenants want a fast and efficient service
and of course nothing is quicker and easier than an online request and response
.
A number of people are finding that they are
priced out of today’s market as there is a strong demand and a shortage of
supply continue to push up ,there has been an small uplift in the supply but
the difference between the demand and availability can only mean that rents
will continue to rise .Tenants will have cut down their spending like for
example the will need to buy less groceries
,they will need to stop their outings as transportation will be needed ,
tenants will not have the freedom to spend their own money as they will be
having a huge burden and they wouldn’t
even think about spending their money on luxuries items . Saudi Arabia
is said to also have an increase in rent just like how it has increased in the
U.K , it was claimed that rent sold in the black market is
even higher than the normal increase in price , some tenants might be
desperately looking for a an apartment and will probably ending up renting one
from the black market ,it is also claimed that
Malaysia on the other hand’s rent
is affordable by every one this probably
because of different GNP of the two different countries . A rent Ceiling which
below the equilibrium leads to a inefficient underproduction of hosing services
, the marginal social benefit of housing services will probably exceeds its
marginal cost and this will lead to a deadweight loss .
- · this diagram shows the consumer surplus , producer’s surplus the deadweight loss and the loss of housing search
The law of Demand says that the higher the prices
are the lesser people will be demanding, the landlords will also be benefiting from the higher
demand if their prices could drop , movement along the curve is going to be
that when the prices of rent tend to fall more tenants will be able to rent the
apartments, and then in that case the equilibrium can occurs when the demand
meets the supply .
- · This diagram shows the movement along the demand curve .
·
This diagram shows the equilibrium .
In my opinion the rent should only be increased
in areas or regions where people earn high and are able to pay up their rent ,
the increase in the rent should be fair as not everyone can afford the increase
in price specially the low income earners receive their current money and not
an increase, this will put a question up saying how will they be able to pay
their prices when the rent has increased and their income stays unchanged ?! .
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