I lived at a place many years ago, and the landlord wanted to increase the rent from 900 to 1300. Which was just a fantasy number for the area. I countered with 1000, because moving is a hassle and it was an ok place. They said no, so we moved.

Then the place was vacant for years afterwards. I always chuckled when I walked past it. Great job, instead of getting a steady income, you try to gouge your tenant and get nothing! Art of the deal level right there.

Whilst for some it might just be the inertia of "I increase the rent every year", for many it will be a careful calculation, assuming that staying in the same place has an increasing value to you over time. It also helps with the overall dropping rents "problem" by helping to increase the average, and encourage other landlords to do the same.

It works.