[yardie]

He's definitely losing something. Property taxes are based on area and number of rooms. They could have found a tenant looking for the right number of rooms in their budget.

[jtbayly]

Or he advertised 1, 2, and 3 BR and took the first that came along.

You are assuming demand is equal for all of those. It might be in some places, but not others.

[adolph]

Unused capacity might be claimed as a business loss?