Background: Cities and states across the nation are enacting laws to protect so-called tenants’ rights. These laws include eviction moratoriums, restrictions on landlord screening, and providing legal representation in eviction cases. While the details of these laws vary, they all impose restrictions and mandates upon landlords.
While much of the focus of laws intended to protect tenants aimed at landlords, there are a multitude of laws and restrictions—such as occupational licensing and pro-union laws—on the economic freedom of tenants. Such restrictions impede an individual’s ability to improve his income, and thus, be better able to purchase the housing that he desires.
- Housing advocates argue that tenants’ “rights” laws are necessary to balance the power between landlords and tenants. Such claims equate economic power with political power. Economic power is the ability to create values. Political power is the ability to coerce. Economic power is gained by producing and trading values. Political power is gained by convincing law makers to grant special favors.
- Rights pertain to freedom of action—the freedom to act on one’s own judgment so long as one respects the freedom of others to do the same. Housing advocates do not seek freedom of action for tenants. Instead, they seek to restrict the freedom of action for property owners through mandates and prohibitions.
- Numerous states and municipalities have enacted laws that prohibit landlords from considering criminal convictions and past evictions when screening tenants. A landlord is allowing a stranger to live in his property, and he wants some assurance that the individual will pay the rent and respect the property. Past actions provide vital information about applicants, but lawmakers are making it illegal for landlords to consider such information.
- Numerous states and municipalities have enacted “right to counsel” laws that provide renters with free legal assistance when facing and eviction. This legal representation is funded by taxpayers, and landlords are taxpayers. They are being forced to help pay for the tenant’s legal expenses. This is a gross injustice.
- The eviction moratoriums have prevented landlords from evicting tenants for non-payment of rent. At the same time, landlords are expect to continue to pay their mortgage, insurance, property taxes, and maintain the property. When rent isn’t being paid, this can be extremely difficult, if not impossible, for the landlord.
- All of these policies to protect tenants are short-term solutions. They are placing additional burdens on housing providers while simultaneously demanding that they continue to provide housing. At some point, landlords will decide that the hassles, expenses, and uncertainty aren’t worth it. At some point, landlords will begin to shrug.
- What is really needed is more economic freedom for both housing producers and housing consumers. Instead of erecting increasingly draconian obstacles to the provision of housing, legislators need to be repealing laws that inhibit economic freedom, including zoning and occupational licensing.
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