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I suspect there's a sneaky thing going on with big SFBA landlords managing units *not* under rent control — as long as rents rise, high turnover is actually profitable. By year 2, your rent will increase *above* market; whether you stay & pay or leave, it's a win for the landlord
In other words, the measure we call "median rent" or "market-rate rent," when derived from listings for currently available units, is really only "first year market-rate rent." And I'm willing to bet that that's *actually substantially lower* than the true market rate.
Confused - if you leave, won't the new tenant pay the first year market-rate rent? But sounds correct that if moving out is more painful for the tenant than the landlord, year 2 rent will be higher than year 1.
In stable markets, the second-year rate will not reflect a large landlord incentive to have you leave. Your willingness to pay more to avoid a move is balanced by your landlord's desire to not have units sitting empty. If demand is high & rents are rising, that pressure is gone
I knew someone trying to sublet a room. Kept getting turned down after offering to pay a full year’s rent up front. Finally realized people preferred month to month because they expected rents to increase before then
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