Morales elected means more rent!
The second I get notified that Morales won the primaries is the second I’m raising my rents by 1,000,000%!
The problem with a 4% rent cap is if you start off with a small base rent, you are forever trapped with small rent increases.
Compare $1,000 a month rent to $3,000 a month rent:
Year 1: $1,040 compared to $3,120 (both 4% increases)
Year 2: $1,081 compared to $3,244 (again, both 4% increases)
Year 3: $1,124 compared to $3,373 (4%)
Year 4: $1,168 compared to $3,507 (4%)
And on and on…
With a base rent of $1,000 and 4% rent cap, rent increased by $168.
With a base rent of $3,000 and 4% rent cap, rent increased by $507.
This is why the whole rent control system is inherently flawed. Expensive rents get more expensive fast, and cheap rents wallow in minor increases.
Heed my words, Morales will be the worst thing to ever happen to Providence renters.