2007-03-06 05:26:54 · 3 answers · asked by its me 1 in Business & Finance ➔ Renting & Real Estate
Rent Control is basically a law or ordinance in certain places that regulates or restricts rents and/or increases to certain percentages or levels.
It has the effect of creating certain pockets of affordable housing in areas where market rents can be virtually out of control.
Rent control or rent stabilization laws vary greatly from place to place, and not every place has these laws. They are most commonly found in urban areas.
2007-03-06 06:28:16 · answer #1 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
When supply is low and demand is high, prices of rentals have a tendency to sky rocket making rentals less available to the general public and causing a need for affordable housing which puts pressure on social and political services. To avoid this issue in areas where the ability to create new rentals is poor rental controls are instituted for that purpose.
Here is an example of rent control in NY
Rent Control Act: http://public.leginfo.state.ny.us/menugetf.cgi?COMMONQUERY=LAWS
Buena Suerte
2007-03-06 14:05:00 · answer #2 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
It locks in a price to rent (like $700/mo) so that prices don't skyrocket ridiculously.
2007-03-06 13:46:51 · answer #3 · answered by Azalea 4 · 0⤊ 0⤋