Question

Why does the government impose the rent control? What is its effect? Illustrate and discuss.

Answer 1

Ans:- Rent control is a government regulatory program over rent. The rent control regulations are generally introduced for the following objects.

1. To create and maintaining affordable housing.

2. Inorder to limit and control increase in rent by landlords which cause disruption in affordable housing.

3. Inorder to ensure the landlords is getting sufficient compensation as rent and maintain his rental property.

After implimenting the rent control rules the effect it was created that the rent level can be set at a particular rate and below that rate the rent cannot be charged which otherwise prevailed in the market.