rent controlrent control
rent control - Investment & Finance Definition
State or local government regulations that limit how much rent landlords can charge their tenants. Rent control legislation usually is passed when the supply of housing is limited and demand for existing homes or apartments is quickly rising. The intent of rent control legislation is to prevent consumers from being subjected to sharply higher rents that they can’t afford. Critics of rent control say that the government shouldn’t be involved in setting prices. They also point out that by limiting the profit that the landlords make, rent control laws restrict the amount of capital that landlords are willing to commit to upgrading their properties. Rent control boards govern how much of an increase can be passed along to tenants each year. Rent control usually occurs in expensive urban areas such as Boston, New York City, and San Francisco. Another lesser-form of rent control is rent stabilization, which is common in New York City.