The Ethics of Rent Control

According to the Oxford dictionary, ethics is "a set of ethical principles that govern people's behavior and conduct activities." Morality includes the following legal requirements, behavioral standards accepted by our society, and related to what you think is right or wrong. Rental management is not immoral, but it is controversial. On the other hand, if this is a good thing, it prevents the owner from unjustly claiming the rent to the tenant, on the other hand it is unfair for the owner to impose a rental fee below the market price and the moral rights are Yes. Obtained.

Rent management is a kind of price management that limits the cost of renting a house, apartment, or other real estate. Rent management is used as an upper limit for prices by raising rents above a certain level or by raising interest rates above a certain percentage. The purpose of the rent restrictions is to limit how much money individuals and companies must spend in borrowing real estate. The amount of rent permitted depends on the jurisdiction and the type of property, but usually the tenant is set to a level that is considered fair to the owner at an affordable price.

Especially the violation of economic freedom of real estate owner is rent management. The rent management ordinance limits the rents that can be collected by the owner of the leased item and the annual increase that they can impose on existing tenants. Rental restrictions seriously damaged housing stocks in American cities on a scale from New York to Berkeley. In either case, the owner can not get a reasonable return on investment, and buildings are allowed to collapse because they often do not encourage new buildings. Rent management is also unfair. In luxury accommodation protected by rental management, there are thousands of wealthy families in New York and only 10 cents have been paid for rent compared to the actual market price. . price

A typical drawback of rent management is related to the quality of housing. In a word, critics believe that rent management does not encourage landlords to restore their property and upgrade them. In markets where there is no rental management, she can choose to give expenses to the tenant with higher rent when the landlord improves the property. Even if the tenant has to pay higher rent, he can still benefit from improving his living area. NMHC associates this rental management with a decrease in the property tax revenue of the city compared to a city without price management. They argue that rental control lowers the market value of real estate and as a result property taxes are lowered.