What Is Rent Control?

If you’re looking for an affordable place to live or if you’ve watched pretty much any TV show about living in New York City, chances are you’ve come across the term “rent control.” Rent control sounds like a great way to save some money on rent, especially if you’re moving to a big city or an especially desirable area where rents can be high. Get to know the basics of rent control before you start looking for a rent-controlled apartment so you understand how it can affect you.

What is rent control?

First, what does rent control actually mean?

Rent control is actually a general term that refers to laws that limit some rental rates in cities or states. The way that rent control actually works depends on where you are since the laws vary by jurisdiction. In general, rent control works by putting a ceiling on how much a landlord can charge in rent for certain units, as well as how much that rent can be increased annually. It’s different from rent stabilization in that the rent on rent-controlled apartments cannot be raised at the end of a lease.

Cities tend to adopt rent control measures as a means of keeping prices from getting too high and regulating the housing market, although the evidence is mixed as to whether rent control policies actually work as intended. New York City has had rent-control regulations since 1943, making it the city with the longest-running rent control laws in America. Los Angeles, San Francisco, and Washington, D.C. are also notable cities with rent control laws.

At the same time, rent control laws are not that common in the United States. A 2019 study found that Maryland, Washington, D.C., New Jersey, New York, and California are the only states that have municipalities with rent control regulations. However, 37 states actually have rules prohibiting rent control measures.

How does rent control work in practice?

How rent control works depends on the city where you live, since cities have different rules and regulations. In general, the value of renting a rent-controlled apartment tends to go up over time. Most cities allow landlords to raise rents to market rate when a new tenant moves in, even if the unit is rent-controlled.

The first year you move into a rent-controlled unit, your rent will probably be similar to the market value for your area. However, the longer you live there the more valuable rent control will be, since your landlord cannot simply raise the rent each year to market rates and must instead follow the rent control laws of your city.

Instead, the city or state usually decides how much landlords may raise the rent on rent-controlled units annually. For example, in the state of Oregon, landlords may increase rent on rent-controlled buildings by 7% plus inflation each year. In New York City, by contrast, a committee called the Rent Guidelines Board decides the percentage that rent may increase annually.

Do I meet the requirements for rent control?

Even for rent-controlled units, most cities have rules about who qualifies for rent control. As a renter, whether you qualify typically depends on:

• Whether your income is higher than the threshold for your building or apartment complex
• The age of the building
• Local municipal or city laws that may contradict state laws

That being said, you’ll need to consult the rules of your city or state to see whether you qualify for rent control and how it works in your city, township, or municipality since each is different.

How can I find rent-controlled apartments?

Since rent control is limited to a few cities and states, and because renters tend to stay in one place if they have managed to secure a rent-controlled apartment, it can be difficult to find an apartment with rent control. If you’re looking, you may benefit from checking out older buildings. Some cities also have a database or website where rent-controlled units are listed, so you can check if any of those units are available.

Keep in mind that rent control is usually only beneficial over the long term, since landlords can raise rent to market value when you first move in. If you’re only planning to stay in a place for a couple of years, it’s probably not worth the hassle of finding a place that has rent control.

Is it ever worthwhile to leave a rent-controlled apartment?

Finding a rent-controlled unit can be a difficult task, but it can be a great deal. So is there ever a reason to leave your rent-controlled apartment to move to a new place?

Many renters who live in a rent-controlled unit do stay there for the long haul. As we’ve already noted, the benefits of rent control accrue over time, so some renters are absolutely set on staying in their rent-controlled apartment for as long as they possibly can.

However, rent control may not always be as great of a deal as it sounds. It’s important to keep in mind that just because an apartment is rent-controlled does not mean that all of its fees are regulated. Even if the monthly rent stays relatively low, your landlord can charge you other fees before your move-in date, which could increase the cost of finding a rent-controlled unit.

If you’re looking to save on rent, understand how rent control works in your city and state, and learn the pros and cons of living in a rent-controlled unit. Then start your search and find rent-controlled and affordable apartments for rent on Zumper.