Why do the owners of rental units reduce their maintenance expenditures on the units when rent controls

Question:

Why do the owners of rental units reduce their maintenance expenditures on the units when rent controls are imposed? Does their decision have anything to do with whether they can afford those expenditures?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

The Economics of Public Issues

ISBN: 978-0134018973

19th edition

Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North

See More Books

Question Posted: Oct 15, 2018 07:17 AM

See More Questions

Who, other than the owners of rental units, loses as a result of rent controls? Who gains from rent controls? What effect would the imposition of rent controls have on the market price of an existing...
In most Western democracies, it is settled law that governments cannot simply confiscate land for public purposes. Such confiscation is labeled a taking and, even when the government has compelling...
1. What is the initial cash flow (fixed asset expenditure) for this discount used rental car project? 2. Is the cost of installing the LoJack System relevant to this analysis? 3. Are the maintenance...
Is the State of Michigan justified in advertising the prize amount as $1.586 billion? Explain.
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $586,600 of manufacturing overhead cost, 41,900 of direct labor hours, and...
Use R to simulate the probability in Exercise 1.30 Data from Exercise 1.30: A tetrahedron dice is four-sided and labeled with 1, 2, 3, and 4. When rolled it lands on the base of a pyramid and the...
Explain the term coffin corner.
Perfect Pizza wants to install a system to record orders for pizza and chicken wings. When regular customers call Perfect Pizza on the phone, they are asked their phone number. When the number is...
Sam and Alicia arrived outside their boss's office at the same time and took a seat. Both exchanged a cordial "hello", but they didn't say much else as they waited outside. Fidgeting nervously in...
Sportz, Inc., manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines (clothing and shoes), which are produced in separate...
How does the percentage of voters who are renters (as opposed to owners) affect the incentives for politicians to propose rent controls? Does this incentive depend on the likelihood that renters are...
Why dont individuals simply force the FDA to do what is best for consumers of prescription drugs?
A company uses a process cost accounting system and the weighted average method for inventory costs. The following information is available regarding direct labour for the current year: Goods in...
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Reynell had capital accounts of $12,000 and $48,000, respectively. The partnership assets were sold for $22,000....
Suppose you consider buying a share of stock at a price of $90. The stock is expected to pay a dividend of $12 next year and to sell then for $93. The stock risk has been evaluated at B = -0.5. c-1....
For each of the following independent cases (A through E), compute the missing values in the table: Case A B C D E Prime Cost 6,910 11,630 Conversion Cost 11,530 8,020 20,540 Direct Materials $ 2,060...
Simple Interest Mason Culton If you placed $2,000.00 into an investment account earning 5% simple interest, how many months does it take for you to have $2,200.00 in your account? (Round your answer...
Assets Liabilities Cash 1 0 0 Accounts payable 5 0 Accounts receivable 4 5 Notes payable 3 4 0 Inventories 1 4 5 Total Current Liabilities: 3 9 0 Total Current Assets: 2 9 0 Long Term Debt 1 0 0...
Apply the ADI method to the Dirichlet problem in Prob. 9, using the grid in Fig. 456, as before and starting values zero. Data from Prob. 9 For the grid in Fig. 456 compute the potential at the four...
Show that the peak of the black body spectrum as a function of ? is given by eq. (22.14) kg T Wmax = 2.82
In the current year, Wilson Enterprises, a calendar year taxpayer, suffers a casualty loss of $90,000. How much of the casualty loss will be deductible by Wilson under the following circumstances? a....
Benton Company (BC) has one owner, who is in the 33% Federal income tax bracket. BCs gross income is $395,000, and its ordinary trade or business deductions are $245,000. Compute the Federal income...
In the current year, Tanager Corporation (a C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55,000 and a...
Factory overhead of $44,700 consists of Indirect labor of $21,900, Depreciation expense-Factory of $16,900, and Factory utilities of $5,900. a. Compute total manufacturing costs. b. Prepare a...
In Giannakakos et al. (2016), titled Using Video Modeling with voiceover Instruction plus feedback to train staff to implement direct teaching procedures, why do you think collecting data on the...
Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidios cost data table. 2. Calculate Presidios contribution margin ratio and...

Why do the owners of rental units reduce their maintenance expenditures on the units when rent controls

Question:

Step by Step Answer:

Landlords reduce maintenance expenditures because they cannot capture the potential returns from th...View the full answer

The Economics of Public Issues

Students also viewed these Business questions