Suppose you inherit an apartment building from your uncle. You anticipate making some income from the rent on

the 20 apartments in the building. Then you discover that the building is rent controlled-the government has put

a ceiling on how much rent you can charge the tenants. When you examine the numbers, you realize that you are

barely making any profit at all. The cost of property taxes, heating fuel, and repairs means you have almost

nothing left over from the rent paid. Would you cut back on making repairs and keeping the building in a safe and

livable condition? How might you keep the building in good shape and still turn a profit? Is it possible to manage

the building or change it to make it both livable and profitable? Defend your answer.

Question

Business

Chad Mcmahon

26 September, 12:19

Suppose you inherit an apartment building from your uncle. You anticipate making some income from the rent on

the 20 apartments in the building. Then you discover that the building is rent controlled-the government has put

a ceiling on how much rent you can charge the tenants. When you examine the numbers, you realize that you are

barely making any profit at all. The cost of property taxes, heating fuel, and repairs means you have almost

nothing left over from the rent paid. Would you cut back on making repairs and keeping the building in a safe and

livable condition? How might you keep the building in good shape and still turn a profit? Is it possible to manage

the building or change it to make it both livable and profitable? Defend your answer.

+1

Answers (1)

Know the Answer?

Cunningham · Answer 1

Would you cut back on making repairs and keeping the building in a safe and

livable condition?

No, I would maintain the building as good as posible.

How might you keep the building in good shape and still turn a profit?

the value of the building will increase over time. Then, is a matter of patience to make a profit out of the sell of it.

Is it possible to manage the building or change it to make it both livable and profitable?

yes, What usually happens with rent control properties is that the landlords use the building for commercial or create condos use to avoid the law.