Rent-controlled apartments have set prices that cannot be raised beyond a certain amount, protecting tenants from rapidly increasing rents. Laws apply to certain buildings and typically only to those built during specific periods. Rules limit protections, and only certain individuals are covered. Rent-controlled apartments are in high demand, but some oppose the concept due to limiting landlord profits.
Rent-controlled apartments are apartments where the law prohibits landlords from raising prices beyond a specified amount. Such apartments exist in a number of countries and in several large US cities, such as New York. Within those cities, the laws apply to residents of certain buildings and typically apply only to those buildings that existed during the post-World War II housing shortage and/or during the 1971 price-fixing and control period instituted by President Richard Nixon.
A rent-controlled apartment is an apartment where the rent is set at a certain price and cannot be raised above that price. For example, laws may prohibit the landlord from raising rents altogether or may prohibit the landlord from raising rents more than a certain dollar amount or percentage on an annual basis or when the lease term has expired. In general, laws set price caps, and rents in rent-controlled apartments generally tend to be much lower than the prevailing neighborhood rents, making such apartments in high demand.
Certain rules generally apply to rent-controlled apartments, which limit the protections afforded by rent control laws. In most cases, only the owner of the apartment who lived there at the time the laws were passed or his direct descendants are protected by the rent control laws. This means that if a person lived in an apartment during the time the rent control laws were passed he continues to live in the apartment or passes it on to his heirs, the rent control laws apply; if, on the other hand, the person tries to vacate the apartment or sublet it to someone else, the landlord could then raise the rents.
In some cases, a building is rent-controlled and rents cannot be raised even when a tenant moves out. These buildings are covered by a strong rent control law. Apartments in such buildings are generally in high demand, as many individuals want low-cost rentals.
Rent-controlled apartments protect tenants and residents who may not be able to afford rapidly increasing rents in urban or metropolitan areas. A landlord cannot value a house or apartment that is out of financial reach of the tenant, even when the lease has expired, if rent control laws apply. This puts a cap on the landlord’s profits, which has created some opponents of the rent control concept.
Protect your devices with Threat Protection by NordVPN
