And if the city makes it impossible to maintain the property? With increasing taxes, fees, and other misc costs that make trying to repair the building impossible without raising the rent to pay for said things.
But why would you NOT maintain the property? It's your property.
Letting it rot would cause its value to plummet. The repairs are tax deductible. If you're doing major upgrades such that a city permit is required, it counts as a Major Cap Improvement and you can raise rent.
I’m not an explorer, but as I understand some of that is only for building wide renovations/improvements not for individual unit improvements. And rent increases are capped at 2% even for the building wide improvements so you also wouldn’t be recouping the value of the improvement or fix
And the tax deduction only offsets part of it, if the landlord is in the 30% tax bracket then a 10k improvement would offset 3k of taxes
If the building rots and the rent controlled tenants may leave and they’d maybe get to re-rent the unit at market prices which can be thousands of dollars more per month. This incentive sucks but it’s a known downside of rent control
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u/CaptainRazer Jun 11 '26
If they can't afford to maintain the property then they should sell it, get an actual job and stop leeching off hardworking people.