Essay on Rent Control

958 Words4 Pages
There is a reason for everything, and if there is no reason to do something, most people will not do it. For example, if there is no incentive to motivate landlords to upkeep their property and make it the best it can be, they will left their properties at the lowest manageable state they can get away. Rent ceiling laws are an example of how lack of motivation and incentives can discourage people from making sure their best work and resources go into their product or whatever they are doing. These laws impose limitations on the amount landlords can charge their tenants for staying in their properties. This causes the landlords to lose the amount of money they should have made on their property, and the landlords will not be motivated to…show more content…
The obstacles landlords have to overcome causes them to lose their motivation to invest in rental properties and they instead flock towards other housing options to include condominiums, office towers, and hotels.
In short, lack of motivation in exchange for more red tape causes investors and landlords to move towards more profitable options. This movement of money and resources tends to negatively impact people trying to find a place to live, most notably the poor. The National Multi Housing Council (NMHC) states that prospective customers must pay finder fees to find a rental property due to a presumably growing scarcity of available housing. As if this were not bad enough, in some communities rental properties are handed down to friends and family, so they never quite leave the market. In order to obtain housing, new consumers are forced to pay “key money” and other fees. These costs tend to impact young, single, and poor families the most.
As if all of the more or less hidden fees were not bad enough, young, single, and poor families able to find a rental property are often discriminated against. Landlords tend to use factors such as income and credit history in determining who gets their rental property Richer families end up doing better with rent control laws because of this. Poorer people who make up a larger part of the population end up out of a house to live in.
Some economists would argue the above mentioned examples of why rent control is harmful to

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