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by notahacker 381 days ago
Fixed term rental contracts in many jurisdictions, and lack of motivation, particularly for landlords buying property primarily for anticipated capital gains who are quite happy with a "reliable" tenant paying no much more than their costs, but won't be prepared to do the same thing when the monthly cost goes up (and most of the anticipated capital gain disappears...)
1 comments

Sure. But how do any of these factors suddenly change with an LVT?

An LVT doesn't change any of the opportunity costs here. Getting more rent is exactly as useful (or not) as without an LVT.

If you go from covering your costs and expecting to making a capital gain to not covering your costs and not expecting to make a capital gain, you're much more likely to put the rent up
Approximately all landlords are already charging the maximum they can. Especially commercial landlords. Otherwise, they would break the fiduciary duties to their shareholders.
>Approximately all landlords are already charging the maximum they can. Especially commercial landlords. Otherwise, they would break the fiduciary duties to their shareholders.

Assuming all landlords have shareholders is the first clue you aren't on target here.

Your approximation is wrong and dangerous