Optimal Housing Maintenance Under Uncertainty

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Abstract
In this paper we give the optimal maintenance policy of a building where we let the rent depend on the quality of the building. We assume that the quality of the building can be described by a stochastic process on which the maintenance policy has an influence. Furthermore we give rules for when the landlord has to sell the building or when he has to rent it. From these rules it follows that under uncertainty the landlord is more prepared to rent the building than without uncertainty.
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