What is rent control?

Rent control refers to the set of regulations that set limits on the amount landlords can charge for renting out a property. These regulations are designed to make housing more affordable for tenants by preventing rapid increases in rent prices, especially in areas where housing demand is high and supply is limited.

The primary goal of rent control is to protect tenants from excessive rent hikes that could lead to displacement and housing instability. These regulations can also affect the overall market value of properties by creating a capped potential income stream for landlords.

Rent control policies vary widely among different jurisdictions, with some areas enforcing strict limits on rental price increases, while others may allow for gradual increases tied to inflation or other economic factors. By setting these limits, rent control aims to bolster tenant security in the housing market.

Understanding rent control is crucial for those working in real estate, as it influences not only tenant-landlord relationships but also investment decisions and market dynamics within a given area.