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
A forced sale or forced liquidation typically means an involuntary sale of valuables or property for financial reasons. If an unpredictable or uncontrollable event emerges, a seller must ...
Derogative term describing a high-pressure telemarketing office where sales personnel often use extremely exaggerated claims as well as intense sales practices to convince targets clients ...
Right of an individual to be offered something before it is offered to others. For example, a tenant whose apartment is going to be converted to a cooperative has the first right of ...
One who has committed a tort. A tort is a civil wrong that occurs as a result of a breach of legal duty owed to someone, e.g., negligence. A tort does not arise from a breach of contract. ...
A portion of a real estate company's assets financed with debt instead of equity. It involves interest an principal obligations. Financial leverage is beneficial to real estate investors ...
The largest financial intermediaries directly involved in the financing of real estate. Commercial banks act as lenders for a multitude of loans. While they occasionally provide financing ...
Sales commission charged to buy shares in a real estate mutual fund sold by a broker or salesperson. Typically, the fee ranges from about 1 percent to 8 percent of the initial investment. ...
maintenance procedures conducted to prevent later repairs and furthering a longer useful life. For example, many boilers and burners are cleaned and serviced each year before the winter ...
The amount of a periodic payment, whether monthly, quarterly, or annually, including interest and principal, required for a mortgage payment. ...
Have a question or comment?
We're here to help.