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PaperclipPerfector  3d ago (text post)   1836 thread views

Small-Scale Question Sunday for October 13, 2024

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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As a rentcel, I'm extremely disincentivized from improving anything about the unit I live in because I don't want to put money and effort into improving someone else's asset. For example, my wife would like to put some wallpaper up. But I've put up wallpaper up a few times in my life and it's kind of a pain in the ass. If I were going to enjoy the wallpaper for thirty years or more, that's one thing. If I'm going to enjoy it for a few years before we (inshallah) buy a house, and then we'll need to tear the wallpaper down, it's just not worth it to me. Same for minor maintenance issues around the house that the landlord doesn't give a shit about. I'd much rather have a place that I can do what I want with.

I used to rent and that organisation had a maintainance budget for every unit that was financed through the rent payments. This could then be used for redecorating, like new wallpapers, and/or repairs.

I thought the system was pretty decent and if not for how the housing market extremely strongly incentivises home ownership I might have stayed in such a housing arrangement.

As a rentcel, I'm extremely disincentivized from improving anything about the unit I live in because I don't want to put money and effort into improving someone else's asset.

I like this argument, although I prefer the inverse "I may be more neglectful and cause more damage because it doesn't belong to me." There's a reason its generally not advisable to buy a used car that was previously a lease or a rental.

But I begin to think that the average person isn't really going to do much with a place they own that would 'justify' having them own it themselves.

And why not just have them subscribe to a service that will do the interior decorating for them? Similar to those companies that do house staging for real estate sales, you could pay for subscription that lets you swap out your decor every 6 months.

Likewise, many people who own their homes nonetheless pay someone else to mow their lawn, and they rent e.g. their modem and router from Comcast, since its really a hassle to maintain your own hardware.

Seems like its not so far removed to just rent... everything in your home and then you can also outsource annoying maintenance and repairs.

Yes I am hardcore doing Devil's advocate here.

I like this argument, although I prefer the inverse "I may be more neglectful and cause more damage because it doesn't belong to me." There's a reason its generally not advisable to buy a used car that was previously a lease or a rental.

FWIW, the big car rental companies (Hertz etc.) get premium prices on the second hand market because they maintain their cars better than private owners. (Most ex-lease cars are sold "approved used" through franchised dealers so they command premium prices for a different reason)

I like this argument, although I prefer the inverse "I may be ncentivized to be neglectful and cause more damage because it doesn't belong to me."

The landlord holds thousands of my dollars to incentivize me not to cause damage to the unit.

But I begin to think that the average person isn't really going to do much with a place they own that would 'justify' having them own it themselves.

I think painting walls is in the Overton window of things people do to their own houses (edit: or redoing the kitchen/bathroom), but I'd never bother doing this to a rental. It's the ultimate and final cuck. Think about it logically.

And why not just have them subscribe to a service that will do the interior decorating for them? Similar to those companies that do house staging for real estate sales, you could pay for subscription that lets you swap out your decor every 6 months.

So they'll put up wallpaper, I'll pay them a monthly fee for years for nothing (I don't want my wallpaper changed every six months, and I don't want a bunch of strangers in the house every six months either), then they take it down when I leave? Maybe if it was like $10 a year or something but otherwise it's hard for me to see how this is +EV. I could just pay someone to put up the wallpaper and tear it down, and that would probably be more cost effective.

Likewise, many people who own their homes nonetheless pay someone else to mow their lawn

Yeah, but that's a task that needs to be done all the time. People have had maids and butlers for as long as they've had houses, this doesn't really seem to be the same type of thing as paying for a furniture subscription service.

and they rent e.g. their modem and router from Comcast, since its really a hassle to maintain your own hardware.

This is totally bizarre to me and I don't really know why people do it. I've literally never had a problem with a router/modem I bought from Amazon. This is probably the best example of what you are talking about, though. I don't know how many people opt to rent rather than just buy.

Seems like its not so far removed to just rent... everything in your home and then you can also outsource annoying maintenance and repairs.

You already can (in some jurisdictions and some cases, must) outsource repairs. Water leak? Call the plumber. Electric problem? Call the electrician. Floors dirty? Call the carpet cleaners. Etc. what is the benefit of renting my carpets?

This is totally bizarre to me and I don't really know why people do it. I've literally never had a problem with a router/modem I bought from Amazon. This is probably the best example of what you are talking about, though. I don't know how many people opt to rent rather than just buy.

Same here, although aging equipment sometimes takes some work to make compatible, or simply won't work and force an upgrade.

ONE reason I can understand people renting Comcast Equipment is that they'll upgrade it for you periodically and you pretty much don't have to fiddle with it to get it to work.

For me, though, owning the equipment gives me reassurance that I actually CONTROL my home network, in that no other parties can shut down or interfere with my personal equipment. At least, not without some effort.

So they'll put up wallpaper, I'll pay them a monthly fee for years for nothing (I don't want my wallpaper changed every six months,

Nah, I'm suggesting you COULD do that. But there could just as easily be a service that does it for a flat fee anytime you want to update, and perhaps there's also a guarantee to replace anything that breaks as part of the deal.

The point here is, what's the benefit to you from owning your furniture and decor? Why would you argue against someone renting it to you instead? Is it really just about having the 'option' to do what you want and decorate however you like?

Water leak? Call the plumber. Electric problem? Call the electrician. Floors dirty? Call the carpet cleaners. Etc. what is the benefit of renting my carpets?

In theory, it reduces complexity a lot. Now the expense to you is collapsed down to a monthly or annual fee which represents the entire expense of using the carpet. And if you want to replace the carpet, you can call up a replacement from the same company. Maybe they even have an app.

Apparently you can rent fucking clothes these days, so I'm trying to hear the strongest arguments against doing such a thing, if we assume the service that allows you to do so exists.

Nah, I'm suggesting you COULD do that. But there could just as easily be a service that does it for a flat fee anytime you want to update, and perhaps there's also a guarantee to replace anything that breaks as part of the deal.

The point here is, what's the benefit to you from owning your furniture and decor? Why would you argue against someone renting it to you instead? Is it really just about having the 'option' to do what you want and decorate however you like?

Change my furniture any time I want for a flat fee and with a warranty? we already have this, it's called having someone deliver/haul away your furniture and buying a manufacturer's warranty, no renting necessary. People don't usually do this because it isn't really worth it to them. Extended warranties in particular have a real bad reputation afaict.

To put it simply, it's difficult to imagine that a company providing this service can make money while the customers are not losing money over the alternative setup.

Maybe there really are people who change their decor every month, and for those people, yeah this might make sense. But for everyone else, the transactions costs are just too great for this to pencil out I think.

In theory, it reduces complexity a lot. Now the expense to you is collapsed down to a monthly or annual fee which represents the entire expense of using the carpet. And if you want to replace the carpet, you can call up a replacement from the same company. Maybe they even have an app.

Again, how does this pencil out? You basically are marketing a kind of insurance scheme or extended warranty scheme for my carpet, plus I guess the option to swap it out.

We all know that self insurance is the best insurance. Especially when we're talking about something like carpet where there's no catastrophic risk to consider (unlike a car where if I hit someone I can be liable for millions in medical costs), I just don't see a path to profitability for the firm renting out carpets without a price increase for the consumer over the status quo.

Is the option to swap out your carpet important enough for people to make this financially viable? I doubt it, because replacing carpets is pretty expensive and the firm would need to amortize the cost of the guy who swaps his carpet out every week across the entire customer base, even if the median customer changes carpets once a year.

Apparently you can rent fucking clothes these days, so I'm trying to hear the strongest arguments against doing such a thing, if we assume the service that allows you to do so exists.

How is this different from renting a tuxedo for prom, or renting some equipment from the hardware store? There's clearly a place for services that rent you something that you're only going to use once, and clothing for special events seems to be the target market for this list of services.

Change my furniture any time I want for a flat fee and with a warranty? we already have this, it's called having someone deliver/haul away your furniture and buying a manufacturer's warranty, no renting necessary. People don't usually do this because it isn't really worth it to them. Extended warranties in particular have a real bad reputation afaict.

Right.

So the model I'm proposing avoids you needing to pay for the hauling away part, or the repair or the warranty. It would all be folded into the subscription/rental fees, so you only have to worry about paying your monthly cost.

Its a close-to-identical outcome, but you are not the 'owner' of your furniture and decor.

If the cost ends up being somewhat less, then what argument remains for choosing ownership?

I doubt it, because replacing carpets is pretty expensive and the firm would need to amortize the cost of the guy who swaps his carpet out every week across the entire customer base, even if the median customer changes carpets once a year.

Or offer the "swap it out every week" guy some other kind of deal. I think we're hitting a point where companies have extremely creative business models and can use tons of data to identify how to best provide for each customer's personal use habits.

There's clearly a place for services that rent you something that you're only going to use once, and clothing for special events seems to be the target market for this list of services.

Yes.

And if there's a market for renting things you'll only use once. Why not a market for things you'll only use twice? Or 12 times?

People who try to keep up with fashion trends or who prefer to wear new clothing on the regular could probably save TONS of closet space (or trips to the thrift store) by having a service that will rent them clothes on some kind of set time frame.

If the cost ends up being somewhat less, then what argument remains for choosing ownership?

If you're proposing that someone offers a couch subscription service that costs less over the lifetime of the couch than the value of the couch itself, we're talking about some kind of economic paradox. But yeah, if someone's cutting their own throat and offering me a couch rental for less than the value of the couch, I'd probably take them up on it so long as I don't need to care about the damage I'll inevitably do to the couch.

People who try to keep up with fashion trends or who prefer to wear new clothing on the regular could probably save TONS of closet space (or trips to the thrift store) by having a service that will rent them clothes on some kind of set time frame.

Probably, but that's kind of a niche demographic. We're pretty far from the average consumer at this point.

If you're proposing that someone offers a couch subscription service that costs less over the lifetime of the couch than the value of the couch itself, we're talking about some kind of economic paradox.

Well, these companies do in fact exist, explain that to them.

Seems like I would have the option to buy a sofa for about $1000 new or pay $43/month for a year lease, after which point it looks like they sell it used for like $400 used. If I planned on moving after a year, then paying $500 for the sofa rental for the year would cost less than buying the $1000 sofa then selling it for $400 when I move (unless I really thought I could get more for it), as that would cost me $600.00.

I think I can imagine a scenario where I'm not planning on living in a given place for greater than a year, and rather than buy furniture, use it, then try to sell it on facebook marketplace OR pack it up and move it to my new place, I just rent the stuff I want and they arrange for pickup when it is time to move.

And incidentally, if we're living in this "own nothing and be happy" world, it should be pretty easy to pick up and move because you don't need to drag your belongings with you. Better job offer in another town? Drop everything, move into a new rental, rent new furniture, get a new vehicle subscription (don't even need to worry about updating registration!) and move along almost seamlessly. If you want to move to a new town every year, its much easier if you don't have to worry about the cost of moving or liquidating all your existing furniture, to say nothing of the house.

For a type of person who just follows the highest salary or moves about on a whim, surely this is the best arrangement?

Seems like I would have the option to buy a sofa for about $1000 new

And you believe that's a good price? As far as I can tell, rental-purchase prices exist to fool suckers and justify their exorbitant rental rates (and occasionally to dodge laws that set maximum rates based on purchase prices).

I didn't find that exact couch anywhere else, so instead compare the PS5 available for $449.99 from Best Buy to the PS5 available for $766 Cash + $942 lease fees = $1709 = $84.99/month for 18 months. Sure, you could compare buying it for nearly double the market price to leasing it for double that again. Or you could pay less.

People who move on a whim are surely just best renting furnished apartments?

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Well, these companies do in fact exist, explain that to them.

Do they? Who said that this service charges less than the value of the couch? I strongly suspect that you pay a premium for them to deal with everything for you.

For a type of person who just follows the highest salary or moves about on a whim, surely this is the best arrangement?

Probably, but much like people who replace their entire wardrobe every season, it's far outside the modal behavior.

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This is probably the best example of what you are talking about, though. I don't know how many people opt to rent rather than just buy.

That point in particular feels is a great pivot point to nudge people towards ownership. Show them how many months it'd take the modem to “pay for itself”, a screenshot of the ISP naming that specific model as compatible with their plan, and they'll usually get right on board.

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