Rent Control
Rent control happens mostly everywhere, but how does it work? When rents of the rental properties are held down below the market rate is called rent control. The government tried to protect poor in high rates of housing from landowners by setting up the rent control (Brownfield, 1975). Thus, the government sets up a maximum rate for the rental properties that landowners can charge to their customers to help people in poverty. When city government “imposes rent control, it means the city makes it illegal for the landlords to charge tenants rent above a ceiling price” (Murphy, 2014). For instance, landowners can not charge above the amount set by the government or as they wish. As opposed to not having rent control on apartments, lets the landowners choose the rents accordingly. Rent control is hurting poor while benefiting some rich people, creating a shortage of the rental properties, and making the rental properties’ quality down. Rent control should …show more content…
For example, some landowners are not benefiting much from their renting properties from having rent controls laws. Therefore, they tend to not care about their properties, and they would not do any renovations to upgrade their properties or construct new ones (Writer, 2010). One of the scenarios would be where buildings are collapsing and people dying because of the poor quality of buildings in the rent-controlled properties. One incident like this occurs each year in Mumbai, and approximately 90 people per decade die in building collapse incident (Bellman, 2006). Another case would be when landowners would not fix their properties, and let them fall and burn down so they can get the insurance money. While other landowners change their properties “to condos and non-housing uses to escape the burdens” of rent control laws (Durden, 2017). This reduces the quantity supplied of rental properties in the
Rent control happens mostly everywhere, but how does it work? When rents of the rental properties are held down below the market rate is called rent control. The government tried to protect poor in high rates of housing from landowners by setting up the rent control (Brownfield, 1975). Thus, the government sets up a maximum rate for the rental properties that landowners can charge to their customers to help people in poverty. When city government “imposes rent control, it means the city makes it illegal for the landlords to charge tenants rent above a ceiling price” (Murphy, 2014). For instance, landowners can not charge above the amount set by the government or as they wish. As opposed to not having rent control on apartments, lets the landowners choose the rents accordingly. Rent control is hurting poor while benefiting some rich people, creating a shortage of the rental properties, and making the rental properties’ quality down. Rent control should …show more content…
For example, some landowners are not benefiting much from their renting properties from having rent controls laws. Therefore, they tend to not care about their properties, and they would not do any renovations to upgrade their properties or construct new ones (Writer, 2010). One of the scenarios would be where buildings are collapsing and people dying because of the poor quality of buildings in the rent-controlled properties. One incident like this occurs each year in Mumbai, and approximately 90 people per decade die in building collapse incident (Bellman, 2006). Another case would be when landowners would not fix their properties, and let them fall and burn down so they can get the insurance money. While other landowners change their properties “to condos and non-housing uses to escape the burdens” of rent control laws (Durden, 2017). This reduces the quantity supplied of rental properties in the