Pros and Cons of Rent Control

Rent control is a government program that places a limit on the amount that landlord can demand from leasing a home. The laws are usually enforced by municipalities and they vary from one place to another. All are intended to keep living costs affordable for lower-income residents.

The laws cover the responsibilities of the tenants and the landlords, eviction process and rent levels. Rent rates do not rise and fall based on supply and demand as other products in the market.

Pros and Cons of Rent Control

Pros of Rent Control

  1. Tenants can save

As the rent rates are controlled by the government, the landlord does not have the right to raise the rates without notification from the government hence the tenants can save the money and use it in other developmental projects.

  1. Helps maintain diversity and stability of the neighborhood

The tenants can have stable neighbors as they will not keep on moving from house to house due to raising of the rent rates by the landlord.

  1. Improve and maintain the property

When a tenant stays at a place for a long time, it will improve and maintain the property hence the landlord will not incur a lot of cost in repairing the house.

  1. High likelihood of lease renewal

The tenants would like to stay at a place for a long time as they know moving out will make the landlord renew the rates and this may be to the higher side.

  1. Preservation in a building increases the property value

When a tenant preserves the building, it becomes easy for the landlord as the building will increase in property value.

Cons of Rent Control

  1. The laws discourage building

When the government takes over the rent control, it does not allow the owner to continue building at the same place as it may risk the lives of the tenants who are already living in the houses.

  1. Older buildings

The laws only safeguard the buildings which were built a long time ago. This may be disadvantageous to the tenants who are occupying the recently built houses as they will not be protected by the rent laws hence they may be exploited.

  1. Prices fall below market

When the building is protected by the rent laws, the landlords may not benefit from their property as the prices will not be as high as compared to the recently built houses hence they may not benefit from the deal.

  1. No incentives to upgrade the houses

The landlords will be required to keep on upgrading the houses for them to keep the tenants or attract new tenants using their own money as the government will not provide incentives to upgrade the houses.

  1. Decreases income tax revenue

The landlords do not earn much from their property as a large percentage is given to the government hence no profit is gained.

  1. High administrative costs

The government will require the landlords to have the caretakers and the cleaners of the houses of which the landlord himself has to meet the expenses hence the cost will be high.

  1. Reduces maintenance on the existing property

The landlord will not have the chance to instruct the tenants how the houses are to be maintained and this may lead to the destruction of the houses by the tenants.


Rent control mostly benefits the tenants as they will be protected from being exploited by the landlords but the landlords will hardly benefit from their property hence most landlords do not involve the government in the control of their property.


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