samfarrell
Registered User
- Messages
- 78
By my calculations, you must have left the rent unchanged for around 6 years to get that RPZ result.To give a real example, I changed tenants recently and the effects of the RPZ were as follows:
Old rent: 1200
Potential market rate: €1500
RPZ result: €1345
One effect of the RPZ has been to reduce the incentive to be a good tenant, as you now know that rents will almost invariably go up regardless of your behaviour, and how well you keep the place.
By my calculations, you must have left the rent unchanged for around 6 years to get that RPZ result.
Outside of the greater Pale landlords struggle to keep up with overheads never mind profit.
It's an interesting point - my experience from other landlords is that "everything was going ok with the tenants until I increased their rent - then they started calling me almost every month with things to resolve"
If this was an IT business who had to charge the same price for their product, what they would do for 'reliable' customers is offer their 'premium' support service for free (or discounted). This support service would have shorter response times for issues (even minor ones). People on the basic support service would be responsible for fixing some of their own issues, minor (cosmetic) issues would be dealt with within a couple of weeks etc.
Not sure how much scope there is in landlording for such a pricing mechanism though... you would to split out 'support' \ service charges from 'core' rent.
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