Creative & Legal Ways to Control Rent in Your Neighborhood
Rent Increase has been a common topic, especially since COVID-19 challenged the global economy in 2020. But what if you already have a home but want to prevent inflation from spiking your monthly rent price?
That’s the case for this viral video where a social media influencer walks towards her window with the caption reading, “How I keep my neighborhood’s rent low.” Shortly after, she imitates firing a gun multiple times, creating the idea that she lives in a high-crime area.
The logic behind this video is sound, as studies have shown that neighborhoods with the most crimes have cheaper rent. However, what if someone tries this type of rent control in real life? Will they get in legal trouble?
Fortunately, YouTube and TikTok star lawyer Ugo Lord provides professional insight into the discussion.
According to the seasoned attorney, “In several cities, there’s a concept known as rent control, which is a legal way to prevent the landlord from increasing your rent.”
What is rent control?
Rent control, also known as Cap on Rent, is when the government limits how much a landlord can charge for renting a house or an apartment. This program differs in different places but is always meant to help lower-income people pay for their living expenses. In California, neighborhood rent control is the Tenant Protection Act.
While not every neighborhood has them, the places with rent control restrict landlords from unfairly raising the price of rent year-to-year. This limit ensures that housing is always affordable, especially for those who can afford an above-market-rate home.
It’s worth mentioning that rent control is an umbrella term for several real estate price control types. The term covers concepts like “strict price ceilings,” also known as “rent freeze” systems, in which no increase in rent is allowed once enacted.
Another term under rent control is “vacancy control,” also known as “strict” or “strong” rent control, in which the rental price can rise but continues to be regulated between tenancies.
Arguments against rent control
As of 2023, seven states in the US permit rent control in some form: California, New York, New Jersey, Maryland, Maine, Oregon, and Minnesota. At the same time, 37 states either prohibit or preempt rent control.
Some arguments against implementing rent control in the 37 states claim that it removes the efficiency of the open market system, leading to housing shortages, misallocation, and deterioration.
Others argue that it reduces the supply and quality of rental housing, as landlords have less incentive to maintain or invest in their properties or to offer them for rent.
Do tenants have any power in neighborhood rent control areas?
In the few states where rent control exists, the power only resides with the government setting the limit for rent yearly. Therefore, tenants cannot control rent alone but benefit from rent control laws if they live in a rent-controlled or rent-stabilized rental unit.
What if you tried to control rent like the lady shooting out the window?
While areas with more crimes have lower rent costs, faking a “bad reputation” by discharging a firearm repeatedly won’t be effective. Instead, the authorities can charge you with unlawfully discharging a firearm.
Illegally discharging a firearm can be a misdemeanor or felony, depending on the risk, and is punishable by years in jail, fines, or gun loss.
Ultimately, the video was a skit with many YouTube commenters saying, “She deserves a Nobel Peace Prize” and “She’s such a kind heart, keeping the rent affordable for all neighbors.”
However, one viewer sarcastically mentioned, “There’s a legal concept called rent control…and it doesn’t exist in your state, ” citing the fact that only seven states have this program.
Author: Susan Murphy