Tenant Rents Research Articles

New-Tenant Rent Passthrough and the Future of Rent Inflation

New-tenant rent inflation rose sharply during the COVID-19 pandemic, subsequently falling. Concomitantly, consumer price index (CPI) tenant rent, which measures rent increases for both new and continuing renters, rose more gradually and, after falling somewhat, has remained elevated. To illustrate why CPI rent inflation has remained elevated, we combine a measure of new-tenant rents and annual renter mobility rates to create a simulated CPI tenant rent inflation measure. We use this simulation to define a "rent gap" that represents the difference between actual CPI tenant rent inflation and rent inflation we would observe if every tenant experienced new-tenant rent inflation. This gap has declined since hitting its peak at the end of 2022 but remains high, implying that existing rents for continuing renters may still be notably below new-tenant rent levels and that rent inflation may remain elevated. However, the future path remains uncertain because it depends on future mobility rates, future passthrough rates, and future new-tenant rent inflation.

Middleware for efficient and confidentiality-aware federation of access control policies

Software-as-a-Service (SaaS) is a type of cloud computing in which a tenant rents access to a shared, typically web-based application hosted by a provider. Access control for SaaS should enable the tenant to control access to data that are located at the provider side, based on tenant-specific access control policies. Moreover, with the growing adoption of SaaS by large enterprises, access control for SaaS has to integrate with on-premise applications, inherently leading to a federated set-up. However, in the state of the art, the provider completely evaluates all policies, including the tenant policies. This (i) forces the tenant to disclose sensitive access control data and (ii) limits policy evaluation performance by having to fetch this policy-specific data. To address these challenges, we propose to decompose the tenant policies and evaluate the resulting parts near the data they require as much as possible while keeping sensitive tenant data local to the tenant environment. We call this concept policy federation. In this paper, we motivate the need for policy federation using an in-depth case study analysis in the domain of e-health and present a policy federation algorithm based on a widely-applicable attribute-based policy model. Furthermore, we show the impact of policy federation on policy evaluation time using the policies from the case study and a prototype implementation of supporting middleware. As shown, policy federation effectively succeeds in keeping the sensitive tenant data confidential and at the same time improves policy evaluation time in most cases.

Housing Rent Dynamics in Italy

In this paper we focus on tenant rents in Italy and compare results from several methods for the rent dynamic estimation. We first document the sources of data available and then introduce quality-adjusted techniques, which enable us to separate the price variation due to qualitative changes in housing attributes from pure price changes. Finally, we compare these measures with unconditional and matched-type price indices derived from microdata. Over the period 1998-2006, we estimate a cumulative rent increase ranging between 40 and 80%. The upper bound refers to the average dynamic for a subset of flats entering the market in a given period. The hedonic approach suggests a substantially lower overall growth in tenant rent, around 40% for the same period.

Housing rent dynamics in Italy

In this paper we focus on tenant rents in Italy and compare results from several methods for the rent dynamic estimation. We first document the sources of data available and then introduce quality adjusted techniques, which enable us to separate the price variation due to qualitative changes in housing attributes from pure price changes. Finally, we compare these measures with unconditional and matched-type price indices derived from microdata. Over the period 1998–2006, we estimate a cumulative rent increase ranging between 40 and 80%. The upper bound refers to the average dynamic for a subset of flats entering the market in a given period. Our hedonic estimates point to an average rent increase of approximately 40%, almost 20 percentage points above the one recorded by the rent component of the Italian consumer price index. A simple calibration model suggests that only part of the difference between our estimates and the official ones is due to survey non-response.

The Measurement of Rent Inflation

Providing for shelter represents a large portion of the typical household budget. Accordingly, rent, paid either to a landlord or to oneself as an owner-occupant, has a large weight in the CPI and in the personal consumption expenditures deflator, resulting in substantial scrutiny of how tenant rent and owners’ equivalent rent are measured in these price indexes. In this paper, we describe how the Bureau of Labor Statistics (BLS) estimates tenant rent and owners’ equivalent rent. We then estimate alternative inflation rates for tenant rent and owners’ equivalent rent based on American Housing Survey data, following BLS methodology as closely as possible. Our alternative tenant rent inflation series is generally consistent with the corresponding BLS series. However, our alternative owners’ equivalent rent inflation series is consistently lower than the corresponding BLS series by an amount large enough to have a significant effect on the overall inflation rate. This result is driven by the inverse relationship between rent inflation and the level of monthly housing cost evident in the American Housing Survey data.

Rents Have Been Rising, Not Falling, in the Postwar Period

Until the end of 1977, the U.S. consumer price index for rents tended to omit rent increases when units had a change of tenants or were vacant, biasing inflation estimates downward. Beginning in 1978, the Bureau of Labor Statistics (BLS) implemented a series of methodological changes that reduced this nonresponse bias, but substantial bias remained until 1985. The authors set up a model of nonresponse bias, parameterize it, and test it using a BLS microdata set for rents. From 1940 to 1985, the official BLS CPI-W price index for tenant rents rose 3.6 percent annually; the authors argue that it should have risen 5.0 percent annually. Rents in 1940 should be only half as much as their official relative price; this has important consequences for historical measures of rent-house-price ratios and for the growth of real consumption. (Revision forthcoming in Review of Economics and Statistics.)

Rents Have Been Rising, Not Falling, in the Postwar Period

Abstract Until the end of 1977, the U.S. consumer price index (CPI) for rents tended to omit rent increases when units had a change of tenants or were vacant, biasing inflation estimates downward. Beginning in 1978, the Bureau of Labor Statistics (BLS) implemented a series of methodological changes that reduced this nonresponse bias, but substantial bias remained until 1985. We set up a model of nonresponse bias, parameterize it, and test it using BLS microdata. From 1940 to 1985, the official BLS CPI for urban wage earners and clerical workers (CPI-W) price index for tenant rents rose 3.6% annually; we argue that it should have risen 5.0% annually.

Testing for Bubbles in Housing Markets: A Panel Data Approach

We employ recently developed cross-sectionally robust panel data tests for unit roots and cointegration to find whether house prices reflect house-related earnings. We use U.S. data for Metropolitan Statistical Areas, with house price measured by the weighted-repeated-sales index, and cash flows either by market tenant rents or estimates of a fair market rent. In our full sample periods, an error-correction model is not appropriate, i.e. there is a bubble. We then combine overlapping ten-year periods, price-rent ratios, and the panel data tests to construct a bubble indicator. The indicator is high for the late 1980s, early 1990s and since the late 1990s for both panels. Finally, evidence based on panel data Granger causality tests suggests that house price changes are helpful in predicting changes in rents and vice versa.

The Effects of Electronic Commerce on the Traditional Shopping Center Lease

The Internet, in addition to its wealth of information, has introduced America to a new way to purchase goods. Along with this new way to shop comes the potential for conflict between the way the retail industry has done business in the past and this new technology. Traditional shopping center leases contain clauses which base the tenant's rent on a percentage of the sales from that store. To ensure its profits, landlords require tenants not compete within a certain radius of the shopping center. With the birth of electronic commerce, customers are ordering their goods directly from retailers online and not entering malls, which, in turn, causes lower profits for landlords. Shopping center tenants who also sell online have the potential to breach their shopping center leases. Therefore, to protect themselves, tenants should draft lease language to address electronic commerce. Section I of this article will discuss the specifics of shopping center leases and explain how electronic commerce works. Section II will explain the problem and demonstrate how courts have addressed similar problems in the past. And, finally, Section III will propose two different solutions to the problem-a legal one, through drafting, and a technological one.

Percentage Leases and the Advantages of Regional Malls

The differences in the ownership structures of downtown retail districts and shopping centers may give rise to varying space allocations and rental contracts found in these markets. This article specifically examines the value-enhancing aspects of percentage leases and explores the mechanisms of tenant mix, risk sharing and rent discrimination through which this value is created. The use of percentage leases may lead to superior returns by allowing a rent structure that approaches perfect price discrimination. Risk sharing through the use of percentage leases may also create value for the property owner and lead to lower rents for tenants.

An exploratory study of tenant‐manager relationships in New Zealand’s managed shopping centres

Presents research which explores tenant‐manager relationships in managed shopping centres. In order to address this issue a sample of 16 shopping centre managers and 45 clothing retailers within these centres was taken in the lower North Island of New Zealand. Clothing retailers were chosen because of their tendency to locate in centres. Results showed that most managers were located at the centre site ‐ which assists in manager‐tenant communications. Managers tended to set tenant rent based on the area and site to be leased. When it came to shopping centre managers selecting tenants, store credibility and willingness to take part in public relations activities were the most important factors. Once the tenants were selected, managers encouraged most of them to contribute to an in‐house marketing fund. When it came to specific relationship issues, managers tended to have more positive views of their relationship with the tenants than the tenants themselves. Concludes that, although the centres have enjoyed success in New Zealand until now, there is still a need for managers and retailers to strive to work together in order to benefit equally from the relationship they have.

Tax Reform and Real Estate

The recent tax reforms proposed by the Administration have occasioned bitter debate over the consequences of tax changes for rents and the value of real property. Many have claimed that these reforms will lead to immediate and sharp reduction in property values and large increases in rental payments. The analysis presented in this article shows that the effect of the proposed tax reforms on rents and property values is likely to be minor; in fact, the values of commercial buildings would be more likely to rise than fall and there should be little or no increase in tenant rents while apartment rents may even be expected to decline.

Walinsky, Louis J., ed. Agrarian Reform as Unfinished Business: The Selected Papers of Wolf Ladejinsky. New York: Oxford University Press, 1977, xi + 601 pp., $@@‐@@22.00, $@@‐@@10.95 paper

A collection of 62 essays on agrarian reform in Asia is presented. Based on field observations, Ladejinsky's works reflect his concern with the redistribution of land to submarginal farmers, tenants, sharecroppers, and landless laborers. The papers express Ladejinski's belief that the role of Asia in establishing the dominance of democracy over Communism is crucial and that the welfare of the Asian people will play a definitive role in the outcome; that agricultural progress is basic to economic development and welfare; that the redistribution of land to the mass of cultivators or the secure land tenure, with adequate water supplies and technical assistance at reasonable rents for tenants, is the best way to provide incentives for agricultural development; that basic agrarian reform is inevitable and revolutionary in character; that political leadership is necessary for the achievement of agrarian reform and the maintenance of stability; and that assistance from Western nations is vital. Two official documents leading to land reform in post-World War II Japan, a chronological bibliography of Ladejinsky, and a list of depository libraries for the Ladejinsky papers are appended.

Landlord and Tenant—Rent Restriction—Repairs or Improvements?

Landlord and Tenant—Rent Restriction—Repairs or Improvements?

Interpretation of Statute—Landlord and Tenant—Rent Restrictions—Exclusion Test as to Quantity of Furniture Required—Increase of Rent and Mortgage Interest (Restrictions) Act, 1920, s. 12, sub-s. 2, Proviso 1.

Interpretation of Statute—Landlord and Tenant—Rent Restrictions—Exclusion Test as to Quantity of Furniture Required—Increase of Rent and Mortgage Interest (Restrictions) Act, 1920, s. 12, sub-s. 2, Proviso 1. - Volume 2 Issue 1