Rent control a disaster everywhere it has been tried

By on July 20, 2016
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The idea of rent control is simple and very appealing to renters. Your rent can never go up as long as you stay in the same rental property. But, this government price control program actually hurts the very people it is intended to help (like many liberal policies).

Here is what really happens in a rent control situation.

The costs to the owner of the property continues to escalate with the inevitable inflation over a period of time while the rents they receive stay static.

So as the cost to maintain the property increases, their ability to do so decreases. Maintenance becomes deferred, or partial at best, because the property owner can’t afford it and eventually the property falls into disrepair.

Once the property is in this untenable situation and the conditions worsen for the tenants, the tenants begin to complain. Next, the code violations and other fines start to pile up.

The property owner is being bled out by the property that they once gladly maintained as a nice place for their tenants. The property owner being saddled with an investment that is now costing him money and not making him money, does what any sensible businessman would do, he declares the project bankrupt and walks away from the property.

Now the tenants are forced out, either through the bankruptcy process or the continued deterioration of conditions making the property unlivable. The people who were intended to be able to stay in those rental properties have gone through hell and now have nowhere to live.

This process has played out in city after city with always the same disastrous results.

Protecting vulnerable citizens, especially seniors, from being priced out of housing is a laudable goal but rent control is not the way to do that. If the city of Yucaipa wants to make sure seniors can stay in their homes, then they should build public owned and subsidized senior living options, not put the onus on private property owners.