The management of a rental building faces a rent control situation, where it can
ID: 2441172 • Letter: T
Question
The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management will a. ?Do nothing because there is no way to effectively avoid the rent control laws b. ?Offer a bundle of both the apartment and furniture together for $1000 c. ?Offer the controlled rent but force the tenants to rent furniture from the management d. ?Both B&C
Explanation / Answer
Ans is D
When both apartment and furniture are bundled then management can charge $1000 and management also keep the rent control situation because rent ceiking was only for apartments.
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