National Rent Control Coming?

Question

Biden rolls out 'Renters Bill of Rights' as lawmakers push for federal rent control lawsIn the face of , President Joe Biden is the White House is calling a "Renters Bill of Rights" in an effort to improve rent affordability and protections for tenants.

Greg Scott · Answer

I read that earlier today.

It seemed more like a PR announcement than any real form of legislation.  Still, I'm going to keep an eye on this space and vote accordingly.

Ron Brady · Answer

I respect that you are concerned. Rent control was first introduced in the US over 100 years ago.  It has been part of policymakers debates for a century and have, for a lot of the reasons here, not been voted into action by policymakers in any widespread way across the nation.

I don't lose any sleep over this. And, as I shared earlier, the President has done an effective job, in this instance, is assuaging the fringe of his base. Both sides of the political aisle have their fringes. So long as leaders of both sides control their fringes, we'll, in my view, be better served.

Bernard Joseph S. · Answer

All by design. “You will own nothing and be happy” that’s in the WEF’s own words and all those beholden to them, like Biden, will implement it.

It may be posturing now but we will all wake up one day and wonder “what the hell happened?” In the meantime try to vote accordingly to buy some time and inform people in your sphere but with the way things are going it won’t be long. Not just rent control but many incredibly destructive ideas by the people in charge.

Have a nice day!

Bernard Joseph S. · Answer

He IS the "fringe" of his base lol. Maybe you haven't been paying attention. But that is for another discussion, political topics tend to go to a very bad place quickly. I'm really just here to make money, carry on.

John Barrett · Answer

@Adrian Clapp Rent control always fails wherever it’s tried because it’s goal is to separate the profit motive from housing. This ignores that when you incentivize people to provide housing you get more of it and the quality of the housing is better.

This press release, like the many bills being floated in legislatures around the country are almost all for show. They are a way to virtue signal without having to do the real work of fixing the thorny underlying problems (environmental restrictions / zoning issues). The other legislators who actually think this is a good idea are the real problem. They are immune to the facts that what they are doing hurt the people they claim to be trying to help.

Adam Martin · Answer

I have my gripes on this but will follow them up with some solutions.  With the current administration this was just a matter of time but I don't see it as going past posturing and making law but I've said that before and been wrong so who knows.  I am currently lax about raising rent however if I have a law like this in my face I am much more likely to get on it for fear of missing out later.  First it is you can't raise rent on current tenants by more than a certain amount, but I believe in certain areas they also limit increases to new tenants or at least that would be my fear as a next step.  The fed has waited too long to try to tackle inflation and then took massive steps to intervene and this is what we are left with but it too shall pass.

My first idea to fix this though is through lending standards.  It is well known that we are in this business to make a profit, that is only fair but we do have some costs that they can control.  Why do we have to pay a premium interest rate for a federally backed loan and why are they so hard to get.  If rental properties were more accessible that should in turn increase supply and decrease price.  I wouldn't have to charge so much for the same COC return since I'm not paying as much in interest.

I'm also not opposed to an option to lower rental costs for my tenants by the same amount as my rates on my loans are decreased and the Fed can just buy back the mortgages and eat the lower rate.  This may not help everyone but there could be some relief.

My last idea is an old one that may need to be revived.  I heard there were these magical oasis's in some cities that were similar to the Greek city of Athens full of culture, art, civility, and prosperity, I believe they were called projects.  The government thinks they can do a better job so maybe they should to some aspect.  Open more housing projects with funds where they are serving the underserved and they can create an environment that is equitable to all.  They are already giving us section 8 funds and we are able to profit, why not keep it in house.  There is no way that a government entity will be as greedy or incompetent as our slum lords serving the same population, what could go wrong?

Also wasn't Biden a landlord to his son and didn't his own son pay some exorbitant rate supposedly.  I forgot the actual figure but it seemed like an excessive amount to charge a family member, I'll have to look up his taxes to find it, surely it was claimed.

Marcus Auerbach · Answer

He had to do something: 40% of Americans are renting and feel the financial pressure. It is understandable when you see rents go up 40% per year in some metros.

The NAR and the NAA are amongst the most powerful lobbyist in Washington and it is well known how much of the GDP depends on the housing market, new construction etc - they know that.

Paul De Luca · Answer

Federal rent control would be truly disastrous. A great way to decrease the supply of available rentals since investors wouldn't be able to make a return worth the risk, leading to many people to sell or exit the market so there would be fewer options for renters, which would cause rents to increase more.

The failure of rent control is well documented so it's insane to me that it's a real goal for many.

Ron Brady · Answer

I read the articles too. My read is the president spent months talking with the fringe of his party and released a meaningless press release to appease them. No executive action, no proposed legislation. Thus it’s sound policy (none) and good politics.

Nothing to see here.

National Rent Control Coming?

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