What Are the Benefits of Rent Control?
Rent control is a method used by cities to combat out of control housing prices. Many critics of rent control speak of its negative affects, but there seems to be irrefutable benefits.
Features
Most cities have what is called moderate rent control. This entails that landlords can only raise rent if operating or maintenance costs rise. Inflation is also taken into consideration.
Considerations
Rent control allows tenants to devote a smaller percentage of their income to rent. This allows them to spend the money in other places. This is extremely beneficial, especially in a recession when the economy needs as much stimulation as it can get.
Significance
Rent control benefits the elderly and those who have established long-term, stable households. Both of these groups benefit because they continue to pay the low cost that they originally paid for the property.
Theories/Speculation
Many critics of rent control say that while it benefits the tenants of the apartment, it does exactly the opposite for the landlords. They claim that landlords will abandon unprofitable buildings. This may be true if most cities did not have moderate rent control policies which do not eliminate landlord profits.
Fun Fact
Rent control has been around since the early 1900's and all rents were frozen during World War II.
