Rent control is a term often used in the rental world to describe the city or county ordinances that limit the rent that a landlord can charge their tenant. Laws regarding rent control often set limits and maximum percentages by which landlords can increase their rental rates. Rent control is a touchy subject, loved by tenants, not so much by landlords. In this post we take a closer look and examine if there are benefits of rent control for the landlord.
Advantages of Rent Control
Rent control is a significant benefit for tenants because they will have access to their continued affordable rental rates without the fear that their budget will be blown out of the water due to a rent hike the landlord deemed necessary all of a sudden.
There are also advantages for the cities that recognize rent control as well. They are maintaining economic and social diversity in these cities, which makes them even more desirable locations to live.
The Downside of Rent Control
Even with all the good, there are still a few downsides to rent control in these populated cities. It is encouraging people to remain renters for much longer rather than choosing to buy. This also means that there are fewer rentals available for people new to the area.
Are There Benefits to the Landlord?
When the tenant decides to stay because of the rent control, they are making it a bit easier for landlords to manage the properties. In this case, if you are a landlord for an investment property, rent control encourages the tenants to stay and pay their rent on time which ultimately creates a more secure cash flow and ensures you have made a good investment.
Overall, rent control is full of good intentions. If you are interested in an investment property in an up-and-coming neighborhood, please contact us.