If you’re a renter, or you plan to rent an apartment in the future, you’ve likely wondered – what is rent control? Broadly speaking, rent control is legislation that limits the price of rent in cities and states. Rent control often benefits residents – primarily by keeping rental rates low and stable. However, there are some drawbacks to carefully consider before committing to a lease.
In this article we’ll cover how rent control works, the pros and cons, and how to find a rent-controlled apartment in your area. Keep reading to learn more about the ins and outs of rent control.
What does rent control mean?
Rent control refers to a broad set of regulatory laws that affect the cost of renting an apartment. In most cities, rent control legislation dictates:
- The maximum cost a landlord can charge for a unit, which is typically determined by the number of bedrooms and bathrooms (e.g. a one-bedroom apartment can cost a maximum of $1,000, a two-bedroom apartment can cost a maximum of $1,250, and so on).
- The maximum amount a landlord can increase the rent by each year, typically in the form of a percentage (e.g. a landlord can raise rents by no more than 2% per year).
The goal of rent control is to create a stable and affordable market for renters. Without rent control, renters would either need to leave the neighborhood in search of one that’s less expensive or move to a different city.
How does rent control work?
Rent control works in one of two ways. True rent control is a regulation that mandates that the cost of rent must stay the same indefinitely.
The more common form of rent control caps how much a landlord can increase rents, so long as the tenant remains in the unit. But when the unit changes hands, the landlord can raise the rent to the market rate (or close to it). Once the new tenant moves into the apartment, the landlord must again adhere to the strict rent-increase rules.
Rent control tenants may be subject to certain…