The explanation depends on how deep or philosophical you want to go on this conversation, but basically you are exploiting someone's basic need for shelter for massive profit, keeping trapped in the poverty cycle as they are having to pay rent to the landlord to pay their mortgage for them and so is much harder to save for their own house. As well as reducing supply of housing on the market, thus increasing prices and making it more innacessible.

Like imagine a group of a few wealthy people buying a town's supply of food then selling it back to the hungry residents at a 300% markup. They don't grow it, they don't transport it, cook it or chsnge it, they don't do anything that ads value, just buy it and sell it at a higher price, to the people that would have otherwise bought it for themselves. Do you consider that ethical?

[–] AFKBRBChocolate 3 points 1 year ago (5 children)

Like imagine a group of a few wealthy people buying a town’s supply of food then selling it back to the hungry residents at a 300% markup.

Okay, that's clearly exploitative and unethical, but that's not inherently what landlords do. Anyone who sells products or services can do it in a way that's fair or is unfair. The mere act of selling something itself isn't unethical. Look at the conversations we have about drug companies. I don't think anyone argues that drug companies shouldn't be able to sell medication, or even make some profit for their research investments. The problem is when they price their drugs way above what's reasonable just because they know people are going to have to pay it.

Renting out a house isn't different from renting out anything else. You go on vacation and you need a car while there, but you don't want to buy one for a short time, so you rent one. The rental agency used their money to buy the car, then they rent it to you for something you're willing to pay for a week, and they make a profit from all the people who rent the car over its life. You both win. Why is it any different with a house?

[–] [email protected] 3 points 1 year ago (2 children)

The problem is when they price their drugs way above what’s reasonable just because they know people are going to have to pay it.

This is exactly the problem with landlords. The argument for landlords being that some people can't afford to own a home becomes a bit moot when landlords buy up all the houses and rent them back at unaffordable prices.

Why is it any different with a house?

Because you rent a car for, like you said, a vacation. That's like renting a hotel room. You rent a home to live in. If you could afford a mortgage, you'd buy a home. But landlords basically go "hey, the bank doesn't think you make enough money to make regular payments, so make those payments to me instead."

[–] SMITHandWESSON 1 points 1 year ago* (last edited 1 year ago)

The problem most people have is their credit, not the mortgage payments. Both my mortgages (I'm not a landlord, but I do airbnb 3 months out of the year) are $1500/month, and most people pay that and more just for rent.

Nevermind the fact that some people are eligible to buy a home, but think they won't qualify so they dont try. I was in that group with a credit score of 680, which is acceptable for the first time home owners program. I was accepted, and now I own 2 homes.

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