What does a rent control law typically establish?

A rent control law typically establishes a maximum price that landlords can charge for rent. This regulation is intended to protect tenants from rapidly increasing rental costs in areas where housing demand exceeds supply. By limiting the amount landlords can charge, these laws aim to make housing more affordable for residents, particularly in urban areas where rent may rise significantly due to economic pressures.

The rationale behind rent control is often rooted in the desire to ensure that low- and middle-income families can afford housing, but it can also lead to various economic consequences, such as reduced incentives for landlords to maintain properties or invest in new housing developments. Overall, rent control seeks to balance the interests of tenants and landlords by preventing excessively high rents and ensuring that housing remains accessible.