So I think I want to lower the rent. This is one of those situations where you find yourself in the strange position to make a small decision based on your own common sense, within a larger context that doesn't make sense. Blah blah, housing market, credit crunch, jobs, yadda yadda, and basically, if everyone is feeling the squeeze, it makes sense for those of us who will probably ride it out safely, to do our part to try to keep the economic foundation stable. Furthermore, my tenants are great and I want to keep them though I don't think I'm in danger of losing them, and they spend a lot of their disposable income right in the neighborhood. That benefits everyone.
Do you know of any gotchas to lowering the rent, assuming you can afford it?
Oh, one other thing, I was talking to a tax person the other day who said that Philly (PA?) has done away with $1 home sales. I wanted to start to rent under an LLC, but he said that to do that, I'd have to sell the house to myself (as an LLC) at fair market value, and pay the taxes on it. Instead, he recommended insuring the crap out of the house and continuing to rent under my name. Anyone heard about this?