The definition of ‘rent’
Rent control is a form of price control that limits the amount the owner may charge for a rental home, apartment or other real estate. Rent control acts as a price ceiling, preventing rents either from being charged above a certain level or growth rate exceeds a predetermined percentage.
Breaking down the ‘rent’
The purpose of the rent control rules to limit how much money individuals and legal entities have to spend for the rental of real estate. Rents can vary in different jurisdictions and property types, but typically is set at a level considered affordable to renters and property owners.
The economic effect of rent control rules have been controversial. Some economists believe rent control and other price ceilings to be market distortions that prevent the construction of houses by limiting the profits the owners can earn from them. By preventing the construction of new housing, regulators can create the same shortage of housing they sought to prevent by enacting legislation in the first place. Others believe rent control is a very effective method of ensuring affordable housing for tenants that prevents homeowners capriciously raising prices.
Rent regulation schemes can allow owners to increase rent at a fixed rate or at a rate indexed to economic factors. Rent levels indexed to inflation, for example, will allow owners to increase the rent they charge tenants based on the level of inflation or inflation plus a percentage.
Why was introduced the rent Control
Rental management can be initiated in response to some factor affecting the economy. For example, in new York city rent control was introduced after the Second World War and politicians continue to act for certain properties. What began with a temporary Federal legislation, the emergency Price control Act of 1942, was replaced by state legislation that enforced the regulation of rent.
The new York state homes and renewal of community is the state Agency that regulates rents and rent stabilized apartments in new York.
The current programme of management of rent of 51 municipalities, including new York, mainly used for residential buildings that were constructed before February 1947. This policy is also in effect for Albany, Buffalo, and cities and villages in the districts, including Albany, Erie, Nassau, Rensselaer, new York and Westchester.
Among the requirements for the apartment to remain under rent control, the tenant or their legal successors lived in the apartment until 1 July 1971. Successors includes spouses, lifetime partners, and family members. Once the apartment is freed, its purpose can switch to a rent stabilized or it can be fully removed from rent regulation, if there are more than six apartments in the building.