Rent control issues

[Meridian Clear]

I have thought about for years that I would have plenty of money if I didn't have to pay so much for rent. I live in a row home in Baltimore in a nice neighborhood and my landlord makes over 300% of what his costs are if all four units are rented; and any one unit nearly covers the mortgage he has to pay to own this. The house is near a major Ivy-leaugue type University and is always fully occupied.

My question is what are some of your feelings about rent control? Is it feasible, fair, appropriate in a free country?

What are some examples you've seen work or not work? and how 'bout a percentage of mortgage as a top-end on the rents charged?

Thanks.

 

[rtwngAvngr]

I'm against it. It's an interference with a free market. Everyone wants to pay less rent, just like children don't want to do homework or take baths.

 

[JIHADTHIS]

NYC has rent control and rent stabilization laws. Their are extreme cases both ways. There are buildings in Manhattan where you have 2 identical apartments and one rents for $3000 and the other for $300. The first is de-stabilized (renter died, moved, etc) the second is still stabilized (renter is elderly, direct descendent, etc)
It's a shitty system since prices are manipulated by all parties involved instead of the free market.

 

[Hobbit]

Rent control is a bad thing. Unless renters are conspiring, the price will be what is economically and legally 'fair.' If you think your landlord charges too much, you can go find another place to live. If there's not one with a better deal, then the price is fair. If the price actually was too high, the landlord would eventually lower it after all his potential customers went elsewhere. It's called competition. The only way this doesn't work is if all the landlords get together and fix the prices at an unreasonably high level, knowing that there's nowhere else for anybody to go, and that's highly illegal.

 

[5stringJeff]

I am totally against rent control, and any other price controls set by any level of government. It screws up the supply and demand that the market sets and should not be considered as a viable economic solution.

 

[NewGuy]

I despise saying ..."Yeah, I agree." and "Just what they said."

But,

Yeah, I agree and just what all the previous posters said.

-RWA....You describe Berkeley, CA perfectly.

 

[007]

It's not the American way to penalize someone for making money.

If there's someone come along that's willing to pay some outragous amount for rent, more power to the landlord. If no one comes along willing to pay it, then I guess he'll just have to lower the rent.

 

[JIHADTHIS]

The dilemma now is that you have a segment of the population living in artificially low priced apartments. If you de-regulate everything, where do these people end up?

 

[Meridian Clear]

I definitely agree that the rent-freezing in NYC is rediculous. I also agree that unfortunately without a degree or a nice paying job in this country your stuck living in squalor or slums, with tons of crime around you.

On the other hand I know someone from Kenya who REALLY knows what being poor is, so I guess I shouldn't be complaining and just, sadly, agree that supply and demand is the way to go.

 

[insein]

Originally posted by Meridian Clear
I definitely agree that the rent-freezing in NYC is rediculous. I also agree that unfortunately without a degree or a nice paying job in this country your stuck living in squalor or slums, with tons of crime around you.

On the other hand I know someone from Kenya who REALLY knows what being poor is, so I guess I shouldn't be complaining and just, sadly, agree that supply and demand is the way to go.

Ding ding. IT ain't perfect, But its by far the Best system out there.

 

[pegwinn]

A-freaking-mazing. I had no idea that this kind of control existed. No regulation is made in a vacuum though. Why is this allowed? Isn't there a black market for cheap houses?

 

[Meridian Clear]

The only rent control I know of is in some major cities and it allows a freezing of rent. Literally so it never goes up as long it stays in the same family.

I have heard of people who cheat this such as pay $1,500 rent to an elderly person who pays $500 a month for a place, that can actually rent for $4,000 if the lease expires.