rent control

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Rent control

Municipal regulation restricting the amount of rent that a building owner can charge.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Rent Control

A local law setting maximums on the amount landlords can charge tenants on certain properties. This is done primarily to protect tenants from certain actions, such as increases in rent at the end of a lease on tenants who ask for repairs. Proponents argue that rent control gives tenants a degree of stability that would not otherwise exist. Opponents contend that rent control discourages investment in housing, reducing the quantity (and perhaps the quality) of rental housing available.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

rent control

Laws that regulate the rent that can be charged for space. Rent-control laws were originally enacted as emergency measures after World Wars I and II,because many returning service personnel emigrated to urban centers.This caused housing shortages and dramatic rent increases, with a resulting increase in evictions.Today,rent control is seen as a legitimate exercise of a government's police power and usually does not require an emergency situation.The state of New York differentiates between rent-controlled apartments and rent-stabilized apartments because of the dates of differing legislation. Rent-controlled apartments are still operating under laws enacted in 1947. They require that the tenant have continuously occupied the apartment since before July 1, 1971. As those apartments vacate, they become rent-stabilized under other legislation, or they become decontrolled under some circumstances.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
In addition to these 'unreasonable rent' rules, since 1996 rent ceilings have existed which limit the maximum amount of rent that is eligible for benefit.
It has been estimated that about 70% of private tenants claiming housing benefit under these rules have their eligible rent restricted to a lower amount than their actual rent as a result of either the unreasonable rent rules or the rent ceilings or both (Kemp et al, 2002).
It has been recommended to the government for increase in house rent ceiling of public sector employees and hopefully sixty five percent would be finalised from the next financial year, he added.
Among other wasteful consequences of rent control, Bourne points to a deadweight cost that is largely overlooked: "With tenancy rent control inevitably comes an expansion of bureaucracy too--and this will also have a vested interest in more regulation." Like other kinds of regulation, rent ceilings spawn officials who will seek to enlarge their budgets and scope of authority--a cost to all taxpayers.
Civitas' proposal for rent ceilings to be introduced to tackle an "affordability crisis" has received an enthusiastic welcome from Plaid Cymru.
The government also decided to put in place price and rent ceilings as a measure to control the increasing prices and rents.
This dichotomy is perhaps most apparent in relation to their opposition to the policy of rent ceilings. Friedman and Stigler published 'Roofs or Ceilings?', criticising rent control on the grounds that it would ultimately generate a reduction of the number of units for rent, especially for the poor who were intended to be the beneficiaries of the rent control.
But, for several years, the CHA has had rent ceilings in place that were far lower than market rate prices.
Anti-inflation measures, such as rent ceilings and wage and price freezes, were put into effect as the nation settled down to the grim business of war.
Second blow came in the housing market in June 1985, in terms of rents and prices, when maximum rent ceilings were raised, for example, from Rs.
Although continued rent controls imposed a brake on the rate of increase in shelter costs, periodic relaxation of rent ceilings clearly intensified rent burdens.
Capped rent ceilings coupled with stratified new resident admission preference will protect all segments of the low income spectrum and will give public housing the income its needs to reach its financial goals.