{"id":75341,"date":"2022-04-08T16:19:19","date_gmt":"2022-04-08T23:19:19","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=75341"},"modified":"2022-10-21T14:51:29","modified_gmt":"2022-10-21T21:51:29","slug":"what-is-rent-control","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/what-is-rent-control\/","title":{"rendered":"What is Rent Control?"},"content":{"rendered":"

Whether you’re a full-time renter or hope to eventually transition to homeownership<\/a>, you may have wondered – what is rent control? Broadly speaking, rent control is legislation that limits the price of rent<\/a> in cities and states. It usually benefits residents – primarily by keeping rental rates low and stable. However, there are some drawbacks to carefully consider before committing to a lease.\u00a0\u00a0<\/span><\/p>\n

In this article we\u2019ll 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.<\/span><\/p>\n

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What is rent control?<\/span><\/h2>\n

Rent control refers to a broad set of regulatory laws that affect the cost of <\/span>renting an apartment<\/span><\/a>. In most cities, it dictates:<\/span><\/p>\n

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  1. 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).\u00a0<\/span><\/li>\n
  2. 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).<\/span><\/li>\n<\/ol>\n

    The goal of controlling rent 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\u2019s less expensive or move to a different city.\u00a0<\/span><\/p>\n

    How does rent control work?<\/span><\/h2>\n

    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.\u00a0<\/span><\/p>\n

    The more common form 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<\/a> 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.\u00a0<\/span><\/p>\n

    Tenants in controlled units may be subject to certain income limits, but not always. In most cases, tenants must abide by specific rules. For example, they cannot sublet their apartment. In many cases, these apartments can transfer to a family member. But, again, the tenant needs to follow very specific rules to do so.<\/span><\/p>\n

    Rent control housing is often scattered within traditional housing markets, meaning that several rent-controlled units and market-rate units could share the same building, and rent-controlled buildings could exist between buildings subject to free-market rates.\u00a0<\/span><\/p>\n

    Who\u2019s in charge of establishing rent control rules?\u00a0<\/span><\/h2>\n

    In most cities that allow rent control, municipalities create boards to set and administer rent control laws. Sometimes elected officials run these boards, but often the municipality appoints board members. These boards determine the maximum rent, rent increases, and other important factors concerning rent control rules. Both tenants and landlords can make appeals to the board.\u00a0<\/span><\/p>\n

    Rent control vs. rent stabilization<\/span><\/h2>\n

    The terms rent control and rent stabilization are used to differentiate between \u201ctrue rent control\u201d and other forms of rent protection. In <\/span>New York City<\/span><\/a>, rent control began being phased out in 1971.<\/span> Today, <\/span>only 1% of apartment units in NYC<\/span><\/a> are rent-controlled.\u00a0<\/span><\/p>\n

    When people say \u201crent control,\u201d they often actually mean rent stabilization, which is much more common. In fact, almost half of all rental units in New York City have rent stabilization. With these units, a landlord can\u2019t increase rent more than the percentage set by the city\u2019s Rent Guidelines Board. In recent years, the Rent Guidelines Board has placed more restrictions on landlords<\/a> in regards to how much they can raise rates between tenants.\u00a0<\/span><\/p>\n

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    Pros and cons of rent control<\/span><\/h2>\n

    Rent control has potential benefits and drawbacks, both for the tenant and the landlord. And that\u2019s in addition to ripple effects in the surrounding economy. The debate surrounding it is constant in every city where laws exist. Below is a list of the most common pros and cons of rent control laws.\u00a0<\/span><\/p>\n

    Pros:<\/span><\/h3>\n