Officials in Clark County, Nevada, are upset with the state’s association for realtors. In its August newsletter, the association told members that Nevada has no rent control laws and “landlords can raise the rent as much as they like, as long as the rent increase does not occur during the current lease.” A county commissioner scolded the association, saying that now is not the time for landlords to be greedy. He didn’t indicate when would be a good time to be greedy, but presumably he will let landlords know. In the meantime, I suggest that it’s always time to be greedy.
As a landlord, I have not raised rents during the pandemic, even though several of my properties are currently renting for significantly less than the market rate. While I never relish a vacancy, I am even less enthusiastic about trying to rent a house under the conditions we have been enduring. An increase in rent of 20 percent or more would significantly increase cash flow. However, it would take close to ten months to recover the cost of a make-ready and the income lost during the vacancy. From a business perspective, I have decided that it makes more sense to retain tenants rather than possibly lose them by greatly increasing rents. By doing what I think is best for me and my business, I am being greedy.
Other landlords may make a different choice and dramatically raise their rents. If, after careful consideration, they conclude that that is the best route for them, then they should do it. They should do what is best for them and their business. They should be greedy.
Greedy means “having or showing a selfish desire for wealth and possessions.” Landlords, myself included, purchase rental properties to build wealth. We are the beneficiaries of our actions and properly so. We are being greedy in pursing our personal desires. We are creating a value and trading it with willing buyers. And those buyers are also pursuing their selfish desires. They too are being greedy.
It’s always time to be greedy because the pursuit of values is a life-long endeavor. This is true whether we are landlords or tenants.