Tuesday, October 15, 2019

Impact of Rent Control - Part 3

When thinking about Rent Control, most people do not consider the impact it could have on public safety.

Without incentives for landlords and potential landlords to upgrade or build on to existing properties, there is less likely to be change for the better. We won’t find new gardens being nurtured or new plants or trees being grown because the tenants aren’t going to leave.

As a result, keeping the same look without proper care invites weeds and other undesirable growth. This often leads to more pests in the area, sometimes where children tend to play.

Landlords and their property managers have fewer reasons for urgent maintenance. Failure to replace light bulbs or light fixtures in common areas increase the risk of injury and in some communities also invite crime.

Amenities such as laundry rooms or basement storage may not be as well maintained as expected since tenants are far less likely to move out and face higher rent payments.

With no reason to increase property values in the community, there are fewer incentives for new investors to enter the community. Real estate investors tend to look at communities with obvious potential to grow their portfolios.

Having the same older buildings stay in place year after year with little to no hope for redevelopment can negatively impact some cities. School districts might also be impacted since Rent Control often leads to fewer and fewer children of different ages being added into class sizes. Smaller class sizes usually results in less funding for the schools.

Some businesses, such as convenience stores, local grocery stores, gas stations, and local services, often benefit by having a steady flow of local customers. It also means they may not need to advertise as aggressively since the local residents already know them.

Either way, the overall lack of turnover has a definite impact on future years within the economy of a neighborhood.

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