Although I see your point, I don’t believe you are looking at it from the opposite end as well. Over time, nothing goes down in cost of living. Property taxes, insurance, electricity, water, repairs, labor costs, etc. The only thing that can go down temporarily in some states is taxes (and not by much). In regards to residential rental increases, many places do in fact have restrictions. Commercial leases however do not have restrictions on increasing rent. I would agree that it is unfair to kick a tenant living in a property out because they can't pay an additional 5-10% a year; however with a business you are given all conditions up front before signing a lease. You take a risk on running your own business but there could be a huge payoff.
I would disagree that landlords want to have vacant space and take a loss instead of renting it. Most intelligent landlords will realize it's better to have it vacant for a short time period and then get the market rent rather than just take anything to fill the space - especially with a long term lease. Imagine selling your home for dirt cheap instead of waiting another year and getting a market value when all the housing mess comes to be semi-normal.
Also, in regards to the law being unfair against tenants again put yourself in the landlord shoes. It's THEIR property, why would they be obligated to change something that's in writing? How upset would you be if the government told you what you can or can’t do with your property/home? If you rent out your home and tell the tenant he/she has to pay an additional $50/month rent just like a lease says and they don't want to, would you just let them have their way? What about if they don't want to pay something else again later on? Ultimately, it is YOUR home, NOT theirs.
Jul 25, 2009