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Commercial Real Estate - Landlord Tenant Relationship
Rent Control


Rent Control


The laws limiting the cost and raising of renting are referred to as rent control. Rent control is not governed by state or federal law, but is rather determined by cities. New York, New Jersey, Washington, D.C and California have the most cities with rent control laws. Because state laws an affect rent control laws, you should check with both in order to determine the specific laws that apply to your area.
 
Rent control and rent stabilization are sometime used interchangeably, as in LA, but refer to different concepts in some jurisdictions, such as NYC. There are typically boards and/or agencies that are in change of seeing that rent control laws are kept. They can also provide information to both landlords and tenants regarding their rights and responsibilities, respectively. 
 
Rent control is not limited to determining the cost of rent and rent increases. The laws often also cover the responsibilities of a landlord with regard to repairs, renewal of leases, evictions, and other matters. In some locales, rent control protects senior citizens from rent increases that affect younger tenants.
 
In cities that do not have rent control laws, if a landlord fails to make needed repairs, the tenant may have to take the risk of paying for repairs and then withholding the cost from future rent payments. While this is usually a legal and proper course of action, it may result in a dispute with the landlord, who may seek to evict on the grounds of nonpayment. However, in places with rent control, this is not a problem. Tenants can report the problem to the rent control board or agency and petition them for permission to make the repairs needed and/or to withhold rent. In certain cities, if the premises are in a deplorable condition, the rent control board or agency may take control, collecting the rent and making the repairs.
 
Sometimes landlords, for various reasons, evict tenants for improper and self-serving reasons. Cities with rent control laws typically restrict the reasons for eviction. For example, the landlord cannot simply provide a 30 or 60 day notice of eviction, but must provide good reason for such as action, such as failure to pay rent, violation of contract, or illegal activity.
 
Because rent control boards and agencies are quite powerful, they solve many landlord-tenant disputes regarding eviction, limiting the need for formal court hearings. Some rent control laws even provide mediation services, to facilitate the reconciliation of disputes between landlords and tenants. 
 
While rent control laws were quite widespread in the 1970s and 1980s, some have been repealed or limited due to organized opposition by landlords. In places were the laws are still in place, they are likely affected by two types of limitations:
 
-Vacancy Decontrol- When a tenant leaves a rent-controlled unit, the regulations concerning that unit may change. The unit may no longer be covered by rent control, different controls laws may be applied, or rent can be raised before the unit is again subject to rent control.
 
-Exemption for New Construction- Typically defined as buildings constructed in or following the late 1970s, tenants of newer buildings do not have the protection of rent control.

 


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    September 06, 2008
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