Landlords avoid raising prices to good tenants not for emotional reasons, but because a vacant apartment earns no rent, and getting a tenant that lives in the unit only for 6 months and then you need to spend two months without rent looking for a new tenant is a worse situation in terms of revenue than a stable tenant that pays every month. It is purely an economic decision that takes search costs into account and falls into the rubric "charging the most the market can bear".
You are just adding complications but not really changing the argument. We can also talk about hotels versus longer term rentals versus residential rent. Why does a hotel charge more per night than a residential rental? Because hotels have much higher vacancy rates, in order to have a unit available. A good hotel strives to be 3/4 full at any time. That would bankrupt most landlords of residential housing, where vacancy rates are 5-7%, not 20-30%.
As the rent goes up above the average rent for your area, so does the cost and time of finding someone willing to pay that rent, and in this way, there is an optimal rent that maximizes your revenue that may not be the highest rent paid but is the highest revenue received over time. That is why good, stable tenants often pay less.
You are just adding complications but not really changing the argument. We can also talk about hotels versus longer term rentals versus residential rent. Why does a hotel charge more per night than a residential rental? Because hotels have much higher vacancy rates, in order to have a unit available. A good hotel strives to be 3/4 full at any time. That would bankrupt most landlords of residential housing, where vacancy rates are 5-7%, not 20-30%.
As the rent goes up above the average rent for your area, so does the cost and time of finding someone willing to pay that rent, and in this way, there is an optimal rent that maximizes your revenue that may not be the highest rent paid but is the highest revenue received over time. That is why good, stable tenants often pay less.