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
Property given and accepted as a grant to the public. ...
Limited period of time granted by state law to an individual who has had his or her property foreclosed on and sold to regain possession of the property by repaying the debt that was ...
Notice of a pending suit; a public notice given to prospective purchasers and any one else considering an interest in property that the title is being legally challenged, and the outcome is ...
Half oval window. It is usually small and placed over a doorway serving a decorative purpose. In some case, the window may be mounted with a hinge at either end to a permit opening for ...
Extent to which soil has cavities or pores, thereby allowing water to pass through. soil productivity;Ability of the soil to accomplish the desired objective such as its capacity for ...
Worth of property based on the relevant economic factors (e.g., state of the economy, unemployment rate). ...
Loose combination of small rocks and pebbles used for a gutter, driveway, landscaping, or roadbed. ...
The definition of population density is a way to measure the number of populations in a specific area. The method of calculating population density is by the number of people per square ...
Clause in a mortgage that allows the borrower to pay more than the monthly amount and to retire the loan early without a penalty. ...
Have a question or comment?
We're here to help.