Rent Control
Definition of "Rent control"
“What is Rent Control?”, you ask.
Rent Control is how some governmental policies that prevent the Landlord from abusively raising the rent are called in the real estate world.
"Rent control in NYC!" is how TV producers excuse themselves when asked how those twenty-something sitcom characters – like the ones on “Friends” - are able to afford to live in such huge apartments. But because of the omnipresent Rent Control in NYC broadcasted by Television and Movies, many people think that the whole country has it and that is not true. Not every state has rent control laws. And the ones that do, normally don’t impose those regulations over every single rental property. Rent Control is usually a tool against gentrification used only in communities where the demand for housing is too high - like NYC.
A Landlord with a house (or an apartment) under those rent laws basically has determined by the government when (and by how much) he/she can increase a Tenant's rent. This prevents the Tenants from having a bitter surprise when the time comes for the contract renewal.
Note: the Landlord is not stuck forever with the Tenant. He/She can reach out to the market and find a new Tenant willing to pay his/her overpriced rent, sure. However, he/she will have a hard time finding this new Tenant, because other properties in that same area are not costing as much, thanks to those governmental policies. If the new Tenant knows this, he/she will probably negotiate around that. Also, hopefully, the current Tenant will have done a good job on his/her rental contract and will have made a clause where he/she has the right to cover the offer and/or other tactics to keep himself/herself inside that property.
Real Estate Secrets:
Get smart with our Glossary Terms! Search away and learn hundreds of real estate words!
Want to find the best Rent Control properties? Find a specialized agent on The Official Real Estate Agent Directory®
Popular Real Estate Terms
The income earned on an investment, typically stated as a percentage of the market price ...
Transactions taking place between individuals who are alive rather than when one of the parties is either dead (e.g., estate) or is contemplating death. For example, a deed may transfer ...
A will where the decedent's nomination of an executor/executrix is flawed, requiring an administrator to be appointed by the court and annexed to the will. ...
A clearly stated notice that an owner or operator will not assume responsibility for an inherent risk. For example, at a parking garage, a large notice of nonresponsability clearly states ...
A freehold equity in a n estate, restricted to the duration of the life of the grantee or other stipulated individual. ...
Individuals, homeowners, and businesses often engage in disputes and conflicts that require fast resolution. However, everybody seeks to avoid legal proceedings. One amicable way to address ...
Additional utility an individual receives when purchasing an additional unit of a commodity or service. Represents a trade off between units of cost and unit of utility. For example, an ...
The total expenditures required to make a locality suitable for the designated purpose. An example is how much it would cost to build a shopping center on a lot. ...
Metal or wood channel attached immediately below or along the eaves of a building for the purpose of channeling rainwater away from the structure. The gutter prevents rain runoff from ...
Have a question or comment?
We're here to help.