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More Cities Are Resisting Exorbitant Annual Rent Increase By Pushing Rent Control

Annual rent increase
More Cities Are Resisting Exorbitant Annual Rent Increase By Pushing Rent Control. (Photo: TheNation)

Rent control or rent stabilization are policies that capped the annual rent increase in order to protect tenants who hardly make ends meet. Records say that there are more than 200 local governments that adopted rent control policies, and more local governments are trying to put the regulations in place.

Annual rent increase,

More Cities Are Resisting Exorbitant Annual Rent Increase By Pushing Rent Control. (Photo: ClareMontradius)

Resistance to Annual Rent Increase May Not Favor Landlords

While rent control helps tenants prevent unaffordable annual rent increases, it was also seen as a problem for landlords as tenants may stay in the place longer than they should usually do. It is even linked to controversies as to whether the ones who benefit from the resisted annual rent increase are actually those with low incomes or those with high incomes, according to Union-Bulletin published article.

However, an economist said that rent control doesn’t necessarily mean that landlords can’t make a profit off their property. He pointed out that rent control simply put a restriction on landlords or corporately-owned property owners to raise annual rent increases at an unreasonable rate of 6, 8, or 12% inciting tenants to leave their homes.

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More Cities Are Resisting Exorbitant Annual Rent Increases Through Implementation of Rent Control

In Maryland’s Montgomery County, the annual rent increase was capped by 6% a few months ago. In Massachusetts, the mayor and city council is trying to lift the 30-year-old rent control ban. Similarly, in Seattle, the city council argued a rent control proposal in July but was rejected during an August meeting.

Wayback 2020, Montogomery Country imposed an emergency rent control act that capped the annual rent increase at 4%, however, when the regular annual rent increase came back in August 2022, more renters were evicted.

Meanwhile, in 2019, Oregon set an annual rent increase at 7%. But no one expected the high inflation last year prompting the annual rent increase at an overwhelming 14%. However, changes to the law this year lowered the annual rent increase to either 10% or 7%.

Succeedingly, California put the annual rent increase at 10%. Currently, there is a proposal in the state that aims to eject the Consta-Hawkins Rental Act, a law that took effect in 1995 removing single-family homes and condominiums and post-1995 construction from rent stabilization. If implemented into law in 2024, the Justice for Renters Act proposal will amend the scope of rent control.

Some States Ok’ed Annual Rent Increase; Prohibited Some Cities from Adopting Rent Control

According to an article, at least 30 states discouraged local governments to impose rent control policies. States that successfully preempt the rent stabilization include Florida and Montana.

READ ALSO: Rent Control Expansion in San Francisco Results in Surge of Evictions and Wrongful Complaints, Research Shows

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