[kelnos]

Except that in SF, a landlord can get a tenant for nearly any price, because demand really is that high, and supply really is that low. On the occasion that a rent controlled apartment goes back into the market in SF, it's snapped up within a week, even if the listing price is set above market rate. A savvy renter (which you have to be, if you want to get a place in SF) will know that they're paying a higher price for a much more stable rent year over year.

[refurb]

That's actually a really good point. One could argue that value of rent control is priced into the rent.

I've know plenty of people who winced at the rent they paid, but told themselves that in 5 years it'll be worth it as the rent will be below market.

[carlmr]

>in SF, it's snapped up within a week, even if the listing price is set above market rate

That makes it the market rate for the apt though. You'd be above market rate if it didn't get rented out in a normal timeframe.

[kelnos]

No it's not; that's a pretty circular definition. Determining the market rate involves comparisons with similar units in the same neighborhood.