>create a futures exchange whereby renters and landlords can lock in rent.
Can't you just sign a longer lease?
Can't you just sign a longer lease?
I think a futures exchange is a bit more flexible though because: 1. Longer leases are often not available 2. People often want to move apartments after, e.g., having a baby
Landlords are afraid of rent going down, and renters are afraid of rent going up, so a long-term contract would be nice because it could simultaneously reduce stress for both of them.
These are the trades that create value--trades that reduce risk for everyone!
The same thing happens in interest rate markets: if you want to borrow money short-term, the interest rate is pretty low; long-term borrowing is scarier for the lender, though, so the rate charged is much higher (https://en.wikipedia.org/wiki/Yield_curve).
They don't. Both want long term stability although some owners don't know that this is what they want :o). Landlords who try to maximise the rent face quick change of tenants (who don't stop looking for affordable places) and less care for their property. The price and stress overhead of finding new tenants is not worth the gain, in my experience. Not to forget, that real estate dealers often try to take money from both sides.