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
Architectural style featuring a long low roof line with a continuous row of windows and a plain exterior. It is very open design with long horizontal lines rather than having small secluded ...
Real annual return on a real estate investment. It equates the initial investment with the present value of future net cash inflows from the investment. The IRR can be determined by using a ...
Relating to trees or shrubs normally found in temperate climates. Deciduous trees shed their leaves in the fall. Deciduous woods such as pine, oak, Maple, redwood, and spruce are widely ...
Founded in 1857 and located in Washington, DC, with over 54,000 members, throughout the United States, the AIA has 301 local groups in all 50 states. ...
If “image is everything”, then home staging is the most important and effective process in a real estate sale. But what is home staging? Well, when real estate agents are ...
Generic name given for any association of property owners sharing an interest in commonly owned property. Community associations may be developed in condominium, cooperative, or housing ...
First right of a party, usually a creditor, to hold, keep possession of, or control the property of another to pay a debt, duty, or obligation. ...
In taxation losses that can offset ordinary income. Assume john owns and operates an apartment house. Minor tenant damage to the property is used to offset rental income. ...
Uncertainties associated with real property including lack of insurance coverage in the event of fire or injury, high crime area, and environmental problems. This risk may be reduced ...
Have a question or comment?
We're here to help.