Is rent control as good as some legislators say? Here are my thoughts.
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Rents have skyrocketed across the United States, and Nevada is no exception. I’ve been raising rents at a much higher rate than I ever have in the 10 years that I’ve rented out properties. The idea of rent control is altruistic, but the reasons that we’re in this so-called rent bubble are inflation and continued government interference in a market that should be left to work itself out.
Rent control has the opposite effect of what legislators intended. Places where rent control has been implemented, like San Francisco and New York, have the highest rents in the country—and it’s because of rent control. Fewer people move into these areas because the people who got a great deal on rent decades ago have no motivation to move, which reduces the supply of available properties. That, in turn, increases demand.
"Rent control has the opposite effect of what legislators intended."
That has the effect of drastically increasing the prices of those properties that do end up on the market. When I lived in San Francisco, a little studio apartment that might just have a kitchenette and bathroom could cost as much as $5,000 or $6,000!
Hopefully this has inspired you to do your research on the effects of rent control. If you have any questions or would like to talk about this in more detail, feel free to give me a call or send me an email. I look forward to having an open and honest dialogue with you.