Why Do Landlords Include Utilities in Rent? Evidence from the 2000 Housing Discrimination Study (HDS) and the 2002 American Housing Survey (AHS)
AbstractThis study assesses the decision to include utilities in the rent and the effect of this decision on rents. We utilize individual house-level data from the 2000 Housing Discrimination Study (HDS) and 2002 American Housing Survey (AHS), and determine that the cost of meter installation is not the only reason that utility costs are included in rent. We find evidence that landlords include utilities in the rent to attract more customers. Additionally, our findings demonstrate that utility inclusion behavior differs significantly between old and new building owners. For the hedonic rent estimation, we find that the decision to include the cost of utilities in the rent raises rent.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Housing Economics.
Volume (Year): 21 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/622881
H39; R22; R38; R20; J71; Landlord; Rental agent; Utility; Metering cost; Hedonic Price Model; Rent;
Find related papers by JEL classification:
- H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other
- R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
- R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Government Policy; Regulatory Policy
- R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jan Ondrich & Stephen Ross & John Yinger, 2003.
"Now You See It, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?,"
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- Jan Ondrich & Stephen Ross & John Yinger, 2000. "Now You See It, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?," Center for Policy Research Working Papers 24, Center for Policy Research, Maxwell School, Syracuse University.
- Jan Ondrich & Stephen Ross & John Yinger, 2001. "Now You See it, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?," Working papers 2001-01, University of Connecticut, Department of Economics, revised Aug 2002.
- Levinson, Arik & Niemann, Scott, 2004.
"Energy use by apartment tenants when landlords pay for utilities,"
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- Arik Levinson, 2001. "Energy Use By Apartment Tenants When Landlords Pay For Utilities," Working Papers gueconwpa~01-01-09, Georgetown University, Department of Economics.
- Friedman, David, 1987. "Cold Houses in Warm Climates and Vice Versa: A Paradox of Rational Heating," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 1089-97, October.
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