rent control

Definition

Government restriction, applicable to rental units in certain areas, in which a maximum is placed on the amount a landlord can charge a tenant. Rent control is a price ceiling imposed by the government, and is in place in many areas across the world. The practice is controversial, as some people believe it is necessary in order to prevent tenants from paying unfair rents and in order to allow as many individuals as possible access to good housing, while others feel that it could create a housing shortage due to increased demand, that a rent control situation will decrease the quality of available housing, or that it is simply unfair to the property owners.

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