Should There Be a Cap on Rent?
It’s no secret the climbing costs of rent have become a burden on most renters in the nation. With renters now spending an average of 30% or more of their monthly income on rent, the conversation around rent control comes up frequently.
In many booming areas, the increase in rental rates far exceeds the increase in median income. Renters are arguing that the high demand of rental properties is causing landlords to be greedy therefore needlessly and excessively increasing rent. While many areas have a law prohibiting landlords from raising rent more than a certain percentage in a year, these percentages are often higher than most feel is reasonable or fair.
Another thing to keep in mind is the rise in the cost of living overall. Between this increase, the increase in rent, and the median income not keeping up, it is evident renters are in a tough situation.
On the flip side, however, is the landlord. Not all landlords are multi-million dollar business owners. Many are regular citizens using a property as a business to get some extra cash to help pay the bills. If the money they can make off this business is regulated, they may not be able to properly provide a service to their client (the tenant). While it can be hard to grasp this concept if you have only ever been a tenant in someone else’s property, it makes sense from a business perspective. If the landlord is losing money on the property where you live, how will they ever make the upgrades you are demanding or ensure the safety of the property as when you moved in five years ago if you are paying the same amount as then while all prices for everything else has increased?
Heated arguments surround the idea of rent control on both sides. While both have valid points and facts to support their views, it could very well be an argument that forever spins in circles. So should there be a cap on rent? Perhaps it depends on which shoes you wear.