Rent Control Vs. Rent Stabilization

Rent control and stabilization rates are governed by state or local ordinances.

The difference between leasing a rent-controlled apartment and a unit governed by rent stabilization can mean thousands of dollar saved or spent over time. State or local ordinances govern rent adjustments.

Rent Control

The term rent control relates to state or local laws that establish a price ceiling on residential housing units. Ordinances were first enacted after World War II, when some landlords attempted to gouge residents because of the housing shortage when soldiers returned from battle.

Low Income Housing

Rent-controlled apartment leases expire when the tenant who originally signed the lease moves or dies. While states or municipalities can attempt to enact new rent control ordinances, the practice is no longer common in America. Low income housing units that offer lease agreements below typical market value for an apartment with similar square footage are not technically rent-controlled units.

Rent Stabilization

Rent stabilization refers to ordinances or regulations to multiple unit apartment buildings constructed from 1947 to 1974. The laws limit the amount of rent that a landlord can charge any time a lease is renewed. Local rent guidelines board or similar governmental entities establish the rate of rental increase on an annual basis.

References

• Rental Terms
• History of Rent Stabilization
• Rent Stabilization Association
• Rent Control Laws