Because they’re over leveraged. They’ve purchased assets when rates were low and now that rates have gone up they haven’t factored this into their profit margins and would either go under or not make enough.
It’s disgusting. If you have enough money to play the game you should have enough money to live with the consequences and a tenant isn’t your get out of jail free card for your shitty planning.
Costs rising more than 3% a year. Since it’s California I’d imagine the insurance is going up much faster than 3% of total ownership costs. If small landlords cannot stay in the black because they can’t afford the insurance with capped rent increases they will sell to the entities that can afford to self-insure. Corporations like BlackRock
Why would that push them to sell?
Because they’re over leveraged. They’ve purchased assets when rates were low and now that rates have gone up they haven’t factored this into their profit margins and would either go under or not make enough.
It’s disgusting. If you have enough money to play the game you should have enough money to live with the consequences and a tenant isn’t your get out of jail free card for your shitty planning.
Costs rising more than 3% a year. Since it’s California I’d imagine the insurance is going up much faster than 3% of total ownership costs. If small landlords cannot stay in the black because they can’t afford the insurance with capped rent increases they will sell to the entities that can afford to self-insure. Corporations like BlackRock