Are buildings rent-controlled?
Posted: Tue May 24, 2016 5:06 am
I loved Capitalism Plus and am really liking the game's new features so far!
But real-estate has me confused. I build a building, set the rent a little below market rate for awhile to attract tenants, and then switch to market rate. Now time has passed, market rates have increased, inflation has occurred, and I have the price seems to have adjusted accordingly. But the "Annual rent per square foot" is way below the "Market Rent" for one ($10.88 vs $21.54 @ 85%.00 occupancy) and slightly below ($18.51 vs $22.64) for the other (85.50% occupancy). Is this something that resolves itself over time as leases come up for renewal, or am I stuck with low-paying tenants who got in when it was cheap (and if so, does it increase for inflation at least)?
But real-estate has me confused. I build a building, set the rent a little below market rate for awhile to attract tenants, and then switch to market rate. Now time has passed, market rates have increased, inflation has occurred, and I have the price seems to have adjusted accordingly. But the "Annual rent per square foot" is way below the "Market Rent" for one ($10.88 vs $21.54 @ 85%.00 occupancy) and slightly below ($18.51 vs $22.64) for the other (85.50% occupancy). Is this something that resolves itself over time as leases come up for renewal, or am I stuck with low-paying tenants who got in when it was cheap (and if so, does it increase for inflation at least)?