I was reading a news where a Landlord have lost around 5 Lakhs because he has not reduced the rent of his house. The thing is the Landlord was getting good rent on 2022 and then he thought of increasing more in 2025, but the tenant refused and left. The landlord have not reduced the rent and the unit is left vacant from the last 10 months. So eventually the owner has lost around 5 lakhs which he would have got if he had reduced the rent and the tenant would have occupied the apartment.
PC: Pixabay.com
So this is teh pure loss making strategy because even though you could have got some less amount you choose not to give the apartment on rent for less price and thus the apartment is vacant for such a long time. I know increasing rent should be there but you have to adjust as per the market standards also seeing the market conditions.
Now there is a fear in IT people because of job cut and other things. So they are reducing their expenses and eventually one of the biggest expense is rent, so they will try to reduce at any cost. And if you as a landlord doesn't decrease the rent, you will have the vacant house for a long time and thus it will be huge loss. If I would have been in that situation, I would have tried to reduce the rent as per the market standards so that people will occupy the house and I will get some money out of it.
And that's why I feel the finance should be taught to everyone because this loss is actual loss, and if you would have got something like some rent then it will not be a loss but you can use that money to make more money also.
