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Rent regulation: Difference between revisions
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*a system of oversight and enforcement by an independent regulator and [https://en.wikipedia.org/wiki/Ombudsman Ombudsman]
The classic objective is to limit the price that would result from the market, where an [https://en.wikipedia.org/wiki/Inequality_of_bargaining_power inequality of bargaining power] between [https://en.wikipedia.org/wiki/Landlord landlords] and [https://en.wikipedia.org/wiki/Leasehold_estate tenants] produces continually escalating prices without any stable [https://en.wikipedia.org/wiki/Market_equilibrium market equilibrium]."<br/> - Wikipedia, "Rent regulation."
The price regulation aspect of rent regulation can be done in varying ways and degrees, with likely different effects. Therefore studies or or conclusions about "rent control" need to carefully consider what forms of regulation were in effect for the study subject, and to what degree they are generalizable to other systems.
#Control of permitted rent change for a current tenant:
##fixed. (rare, but exists e.g. in old New York City rent control on some remaining buildings).
##fixed increase per year
##change based on objective metric such as CPI (consumer price index)
##change based on political/regulatory decision, e.g. municipal Rent Board decision.
##possibly (and typically), other changes are permitted by landlord petition or e.g. to "pass through" expenses such as tax increase or renovation costs.<br/>
#Control of permitted rent change during change of tenant
##same as within a tenant's tenure, in one of the ways above.
##unregulated, i.e. "resets to market rate," aka there is ''vacancy decontrol. ''<br/>
#Regulation of which and when units may fall under or exist price regulation. Price regulation may apply:
##Only to units built before a certain date; and/or
##Only to units in buildings that reach a certain age (see "Deferred rent stabilization" below). <br/> ''[This is uncommon (unknown?) in practice but often proposed].''
##Only to units in buildings above a certain size.
##not when a building is allowed to exit regulation for specified reasons:
###owner move-in. (as permitted by the "Ellis Act" in California).
###when unit rent increases above a certain point. (called "luxury decontrol" in NYC rent stablization law).
###demolition
###condemnation (?) <br/> <br/>
== Rent control vs Rent stabilization ==
In stricter usage, ''rent control ''and "strong rent control" are typically used to refer to rental price regulation that is a) fixed price, and/or b) applies equally within and between tenancies, i.e. does not have ''vacancy decontrol''.
''Rent stabilization ''typically refers to price regulation in which a) permitted rent adjusts variably, e.g. based on a price index, and/or b) permitted rent for new tenants is unregulated, i.e. there is ''vacancy decontrol. ''
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