Perverse incentives

I own two condos in Chicago’s River North. Both tenants have not paid rent since May/June 2020—both have been GAINFULLY employed during the pandemic.

I can’t sell. I can’t evict. I send letters demanding payment of rent due—and I’m accused of harassment.

I’m screwed.

— Kathy Smith (@KAKflipflopgirl) August 5, 2021

End result:

1. Higher rents because of this additional risk.
2. Fewer landlords in the future. Big companies survive; smaller guys and gals die.
3. Governments step in with rent controls which leads to lower quality spaces and a further reduction in supply.