Lots of landlords are stupid and will raise rent beyond the market clearing rate just to make a quick buck, resulting in empty units and shitty communities.
No, actually it's rent control that gives way to that. Landlords don't rent at a loss, and prefer keeping their apartments empty, resulting in shitty communities, then squatters, etc.
Here in SF the geniuses of the Lembi Group bought a bunch of apartment buildings on credit (something like 1 billion dollar's worth), used questionable/borderline illegal tactics to squeeze people out of rent controlled units, and then jacked the prices way up. Then the real estate bubble popped and they went bankrupt.
