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Rent control is great for people who will never own. It helps keep housing costs fixed, which is really the only reason to buy.

by xfitm3 8y ago

AnthonyMouse 8y ago
Rent control is incredibly dumb. It requires the landlord to set the initial rent at a level that accounts for the fact that it can't be adjusted while the tenant is in the apartment, when tenants in rent controlled apartments will stay for decades. So you're still paying the same total amount, but now you're paying more of it up front. And really you're paying more than that, because the landlord is taking a risk in not being able to adjust the rent -- what if taxes go up or some other cost, or the tenant stays longer than estimated? So now you're not just paying the same amount, you're paying it plus a risk premium for the landlord. Then, once you've been there long enough for your rent to be lower than the market rate (which itself is more expensive due to rent control), the landlord loses any incentive to maintain your apartment. Certainly you can expect to never see any improvements, and you'll be lucky if they even do what they're required by law rather than hoping that the insufferable conditions will cause you to move out. Then you can never leave. Apartment is now too small? Too big? Too far from your new job? Bad luck, you're stuck. So you get widows and widowers living in three bedroom apartments they don't need because it's cheaper to stay there than move to a one bedroom down the street (which could otherwise have actually saved them money), meanwhile a family of five is living in the one bedroom because the upgrade to three bedrooms is a rent increase of 700% rather than 70%. And better hope you don't get a new obnoxious neighbor, because you'll be together forever since neither of you can leave. Rent control isn't great for anyone. If you want to hedge against rents increasing by paying a bunch of money up front, maybe invest in a local REIT.
- asdff 8y ago
  You write "You can't leave" like its a bad thing for tenants, but leaving isn't a choice, it's being priced out of your place or not. I'd love to see a citation for how many widowers are taking up supply of three bedroom apartments. Rent control stabilizes rents in places where they can explode and collapse faster than a tenants salary can change to compensate, that's all. All the other problems you bring up are from poor implementation, not that it's a bad idea for everyone.

Rent control is great for people who will never own. It helps keep housing costs fixed, which is really the only reason to buy.

by xfitm3 8y ago

Rent control is great for people who will never own. It helps keep housing costs fixed, which is really the only reason to buy.

AnthonyMouse 8y ago

Rent control is incredibly dumb. It requires the landlord to set the initial rent at a level that accounts for the fact that it can't be adjusted while the tenant is in the apartment, when tenants in rent controlled apartments will stay for decades. So you're still paying the same total amount, but now you're paying more of it up front. And really you're paying more than that, because the landlord is taking a risk in not being able to adjust the rent -- what if taxes go up or some other cost, or the tenant stays longer than estimated? So now you're not just paying the same amount, you're paying it plus a risk premium for the landlord. Then, once you've been there long enough for your rent to be lower than the market rate (which itself is more expensive due to rent control), the landlord loses any incentive to maintain your apartment. Certainly you can expect to never see any improvements, and you'll be lucky if they even do what they're required by law rather than hoping that the insufferable conditions will cause you to move out. Then you can never leave. Apartment is now too small? Too big? Too far from your new job? Bad luck, you're stuck. So you get widows and widowers living in three bedroom apartments they don't need because it's cheaper to stay there than move to a one bedroom down the street (which could otherwise have actually saved them money), meanwhile a family of five is living in the one bedroom because the upgrade to three bedrooms is a rent increase of 700% rather than 70%. And better hope you don't get a new obnoxious neighbor, because you'll be together forever since neither of you can leave. Rent control isn't great for anyone. If you want to hedge against rents increasing by paying a bunch of money up front, maybe invest in a local REIT.

asdff 8y ago
You write "You can't leave" like its a bad thing for tenants, but leaving isn't a choice, it's being priced out of your place or not. I'd love to see a citation for how many widowers are taking up supply of three bedroom apartments. Rent control stabilizes rents in places where they can explode and collapse faster than a tenants salary can change to compensate, that's all. All the other problems you bring up are from poor implementation, not that it's a bad idea for everyone.