In an era in which inflation appears to be distinctly on the rise and of which housing prices along with rental prices are at all-time highs, the question has to be asked about whether rent control is something that would be beneficial for that significant swath of the population that rents. The main problem for those that pay rent is that when their rent so being paid increases year after year, without any corresponding increase in their income to match that, this thereupon necessitates an ever-higher percentage of their income being devoted to that rent. Further to the point, those that own their own residence, of which they have, for instance, a fixed mortgage rate so set for thirty years, know for a certainty how much they are going to have to pay for their home, monthly, by those set mortgage payments, which for them, are absolutely consistent month by month, and year by year. Additionally, mortgage interest so paid, is deductible when it comes time for taxes, along with its corresponding property taxes; whereas, for those that rent, the payment of such, on a federal basis is not deductible.
If the landlord business was absolutely concentrated, such as, for instance, in the days of the company town, there would be an absolute need for there to be rent control; but unlike a significant number of businesses and corporations in America, today, those that rent properties, whether it be apartments, condos, or homes, is a very fragmented business with a good amount of true competition for those that so rent such. This means, that to a very great extent, the rent so being charged, is in fair accordance to what the market will bear. Obviously, in those cities and towns in which the amount of rental property is limited, but the desire or need to rent is high, then rental prices are going to be higher. So, a fair argument could be made, that for those that desire rent control, the same general result that they are looking for, would be better achieved, by more affordable property rentals being built in communities, so lacking in the appropriate number of rental properties to be had. In absence of this being done, a better alternative to rent control, would be some sort of subsidy being provided by the federal government for those so renting, based upon the income of the person and the rent percentage so being paid to such.
Those that are the biggest proponents of rent control, prefer not to take into account, that businesses and people that own rental property are not stupid; so to the degree that they can circumvent rent control, by simply not building in communities with rent control, they will have a strong tendency to do that; additionally, if an apartment unit can be converted to condos, they may well be tempted to do that; and in absence of good options, and thereby when facing a diminishing return on their investment, one would expect logically that rental maintenance and upkeep will be reduced significantly in its efficiency, because of rent control.
Finally, rent control from a renters’ perspective always favor those are currently inside the rental property as a given renter; at the expense of all those that will eventually need a rental place of their own, but now won’t be able to get an affordable one because those that know that they have a below market deal, aren’t readily going to give that up. As for rental investment, those with money, have something that is fungible, by definition, so that, if a particular community has rent control, they will simply find another area to invest in, that does not.