ipl-logo

The Pros And Cons Of Rent Control

460 Words2 Pages

With vacancy rate being virtually zero in the urban area of B.C, the real estate price skyrocketed and renting seems like the only option for many people. The legal loophole spotted in rent control raises the question whether or not the current rent control is a good way to help the homeless. Rent control has always been a controversial issue because although it ensures the affordability of housing, but the cost of inefficient market outcome, giving landlord the upper hand and subsidizing the well-off tenants is disastrous.

The Rent control is an example of price ceiling which the government set the maximum amount of landlords can charge their tenants, and it would be illegal to charge higher prices, ensuring affordability of housing. It uses the idea of robin hood principle, which take from the rich (landlords) and give to the poor (tenants).

Rent control has definitely caused an inefficient market outcome. The price of renting is set below the market-clearing levels, and apartment shortage is an inevitable outcome when quantity demanded greater than quantity supplied. The consumers (tenants) are frustrated and the quantity will adjust to quantity sold equals to quantity supplied only. The ultimate result of rent control is vacancy rate of zero and halt of new construction. …show more content…

With the shortage in supple, landlords have the power to choose whom they want the rent their property to, resulting in discriminating against the tenants they don’t like. The “termination clause” legal loophole allows Landlord to skirt the rent control policy by pushing tenants to sign fixed-term leases with vacate clauses. At the end of the year, the tenants have to either sign a new lease with a rent increase far in excess of the maximum or to leave their places. The maximum increase rate of rent is set at 2.9% for 2016, but in reality it has boosted

Show More
Related
1366 Words | 6 Pages

This way can be proven by an example of Miss Ellen Collins who owned three Water Street houses. Her first task was to allow light in which caused the piles of trash by the sick to vanish and some of the most stubborn tenants. The tenants who stayed abided by the new rules that were set. Collins’ tenants were some of the poorest out there and she did it as an experiment between tenant and landlord. She even lowered the rent as low as possible to still be making a reasonable profit to still be considered successful.

Read More
1399 Words | 6 Pages

Principal among his solutions was housing reform, not just the making of laws to limit the number of people who could be packed into a given living space, but also the destruction or renovation of old buildings. Riis also believed that the landlords must be subject to law and punishment for their malpractice. He suggest that the states have the power to regulate and control of overcrowding and that the tenements and the landlords set a fair ground between them. The following proposals mean that the landlords must set the rent at a reasonable price for both the tenants and the landlords, and provide appropriate repairs and necessities when needed. Accordingly, the tenants must show respect and take care of their home with proper treatment.

Read More
1060 Words | 5 Pages

Shelter is a basic life necessity for survival, however not everyone, of a high or low socioeconomic status, can attain it in downtown Toronto. The waiting list is upwards of 100,000 individuals and families, and the cost of living in Toronto monthly is at an astronomical high of $1300-1850 (Ross, 2018). The long-standing housing crisis only strengthens as more people join the waiting list to live in Canada’s most diverse and lively city. It seems as of late, the Liberal Government under Justin Trudeau have expressed concern in the matter and are attempting to lessen the time waiting and the costs of living in Toronto. The question is: how effective will the new program in place be?

Read More
413 Words | 2 Pages

P 3.2 Closed Questions 4.0 References [1] City of Toronto, Hostel Services [Online]. Availble: http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=cf2ed4b4920c0410VgnVCM10000071d60f89RCRD [2] P. Grenier. (1992). Still dying for a home: An update of Crisis ' 1992 investigation into the links between homelessness, health and mortality [Online]. Available: http://www.crisis.org.uk/data/files/publications/still%20dying%20for%20a%20home.pdf [3] “Client Statement” [4] CIty of Toronto (2013, March) Poverty, Housing and Homelessness in Toronto [Online].

Read More
1431 Words | 6 Pages

Additionally, the deal with the developers would entail Mandatory Inclusionary Housing, where percentages of buildings are reserved for affordable housing while the rest is rented out to middle income people. This method of incorporating affordable housing into middle-income buildings would increase gentrification in the area by inviting wealthier inhabitants in. This would endanger neighborhoods like Brownsville and Ocean Hill by increasing the likelihood of displacing their residents. Displacement would not solve the problem of getting permanent affordable housing for these poverty-stricken individuals, but instead increase homelessness, which is already an issue in this

Read More
804 Words | 4 Pages

The main purpose of social rented dwellings is to provide the opportunity of decent housing for the low-income. Therefore the target group is mainly the immigrants. Since the public housing is kept under control by the government, they might decide to allocate dwellings in a certain neighborhood exclusively to non- immigrants. Housing associations can subtly refuse to register immigrant families by saying that no large dwellings are currently vacant or by asking high registration fees. (van Kempen, Schutjens, van Weesep, 2002).

Read More
1182 Words | 5 Pages

As time goes on, the rate of homelessness rises as the population rises. Homelessness then was mostly caused by a family’s history of being homeless, drug abuse, mental disorders, and tyrannical leaders forcing his people into poverty. In modern times, several organizations are now trying to end homelessness by building cheaper housing projects more affordable to the poor and homeless shelters; these projects usually cost a fair amount of money.

Read More
747 Words | 3 Pages

Homelessness in Canada Homelessness is the condition of people without a permanent dwelling. People who are homeless are most often unable to acquire and maintain regular, safe, secure and adequate housing Mass homelessness in Canada became a problem in the 1980s, after a massive disinvestment in affordable housing, structural shifts in the economy and reduced spending on social supports. Even today, prices for a reasonable home are skyrocketing into the millions! Fortunately, there are many signs that we are entering a new phase that will lead to an end to homelessness in Canada.

Read More
1222 Words | 5 Pages

Affordable Housing Social leased, moderate leased and intermediate housing are given to qualified families whose necessities are not met by the business sector (Communities and Local Government 2012). Qualification is resolved with respect to local incomes and local house prices. Reasonable should include provisions to stay at a moderate cost for future qualified families or for the subsidy to be reused for option reasonable housing provision. As characterized in area 80 of the Housing and Regeneration Act of 2008, social rented housing is owned by local authorities and private enlisted providers for which rule target rents are determined through the national rent regime. It might likewise be owned by different persons and provided under

Read More
771 Words | 4 Pages

Furthermore, housing problems were corrected such that model dwellings had a fixed reasonable price for rent in which private landlords will be forced to improve their housing

Read More
550 Words | 3 Pages

The policies of criminalizing homelessness and poverty has been occurring, and invented in San Francisco, in 1876 with the introduction of the “ugly laws.” These laws particularly targeted those with disabilities, and restricted people’s ability to appear in public spaces (Punishing the Poorest 2015, 6). These laws have not disappeared, they have just been rebranded, and then redeveloped into even more specific laws directed at the homeless. In fact, the more recent introduction of “quality of life laws” are truly just a re--- of the ugly laws and the continued crusade against homeless people, rather than homelessness. These “quality of life” laws, are really anti-homeless laws; these laws place a housed citizens right to the city and life above those dispossessed citizens.

Read More
313 Words | 2 Pages

One Service the government provides subsudy for is public housing. Public housing is viewed at as having a negative affect on the comunity. This identifing wether or not the effects or positive or negative can be difficult to prove. Factors such as the the income level of the existing neighborhood, who is moving in the neighborhood, if thier income matches exsiting residents, the structure of the projects.

Read More
1026 Words | 5 Pages

Homelessness is a complex social issue with a variety of economic and social factors such as poverty, lack of affordable housing, physical and mental health, addictions, and community/family breakdowns. Homelessness has increased its number by at least a 1% since last year, reached nearly 554,000 people who are living in harsh conditions. The government and its policies/bans only harm the homeless instead of being beneficial to them. With the “City wide bans on camping in public have increased [along with the]… city wide bans on sleeping in public…, sitting or lying down in particular places… [and,] bands on sleeping in vehicles have [all] increased”(Wiltz).

Read More
498 Words | 2 Pages

The solution targets the chronically homeless, who cost the health-care and social service systems the most money. The program of providing apartments to the chronically homeless is selective due to limited money, but requirements must be met to be eligible. The program creates dependency under supervision to get people back on their feet. Gladwell assesses the problem by conducting marginal analysis to weigh the cost and benefits. The benefit of spending less money to solve the problem outweighs the opportunity cost of serving all the homeless with a shelters and soup kitchens.

Read More
1271 Words | 6 Pages

Lutz’s idea of basic needs and common good would support the idea of free housing because housing would be considered as one of necessities to be human. The article suggests ways to achieve

Read More

More about The Pros And Cons Of Rent Control

Related Topics

Open Document