>Why doesn’t every landlord raise rent to a million dollars a month

Going to the extreme to refute a point. Solid strategy. That 'given price point' is unaffordable for a lot of people. Unless that example above of a $2K increase is totally reasonable. And all the new buildings around him will charge 5K+ too, cause that old place is charging $5K, but we're offering completely brand new with shiny new appliances and finishes. So surely you will have to pay more here. And on and on and on.

That owner will find someone with deep pockets to rent it.