Rent Control

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Definition of 'Rent Control'

Rent control is a government policy that limits the amount of rent that can be charged for rental housing. The purpose of rent control is to keep housing affordable for low-income and middle-income households.

Rent control is typically implemented at the local level, and there are a variety of different rent control schemes that can be used. Some of the most common rent control schemes include:

* **Maximum rent increases:** This type of rent control limits the amount that rent can be increased each year.
* **Percentage rent increases:** This type of rent control limits the percentage that rent can be increased each year.
* **Base rent:** This type of rent control sets a maximum rent that can be charged for a particular unit of housing.

Rent control can be a controversial policy, and there are a number of arguments for and against it. Some of the arguments in favor of rent control include:

* It helps to keep housing affordable for low-income and middle-income households.
* It can help to stabilize neighborhoods and prevent displacement.
* It can help to reduce homelessness.

Some of the arguments against rent control include:

* It can lead to a shortage of rental housing.
* It can discourage investment in rental housing.
* It can lead to higher property taxes.

The debate over rent control is likely to continue for many years to come. There is no easy answer to the question of whether or not rent control is a good policy. The effectiveness of rent control will vary depending on the specific rent control scheme that is implemented, as well as the local housing market.

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