Landlord Tenant FAQsThis Is A Summary Page Rent, control, and deposits:Introduction to the subject
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Housing is just another commodity.
In a free society the amount of rent a landlord can charge for their property is determined by market forces. Usually . Like any other commodity or service, the cost of housing is always a factor of supply and demand. The supply of housing is a naturally factor of the cost of providing it, and demand is always a factor of a tenant's ability to pay.
When and where there are reports of a housing shortage, that almost always means there is a shortage of affordable housing; i.e. , it costs more to provide housing than it will bring in the market. The issue is addressed in some depth on a RHOL page titled Cost vs. Value . Costs are often increased substantially by government fees, mandates and regulation while value is beyond government control and determined by the market.
How much rent should a landlord charge?
Landlords should charge the highest amount of rent they can get, and still attract and keep good tenants who will care for the property and pay their rent on time; except in certain areas covered by rent control laws (see Rent Control , below).
It is very import to always consider the cost of turnover when considering raising rents . The important number is Net Operating Income , not the gross scheduled rent.
What Is A Security Deposit?
A security deposit is any surety or advance rental payment other than an advance for the first month's rent or a deposit for a pet, a key or any special equipment. A security deposit remains the tenant's property but the landlord holds a security interest in it. Security deposits must usually be kept in an escrow account in a bank.
Additional topics are discussed on
our members' Landlord Tenant FAQs page.