Denver recently began implementing the Healthy Residential Rentals for All ordinance. Supporters of the law claim that it will even the playing field between renters and landlords. As is usually the case with such laws, this ordinance prohibits some individuals—landlords—from acting as they judge best for the purpose of achieving a level playing field.
The ordinance requires the owners of rental properties to obtain a license from the city. The city is keeping the cost of the license low so that landlords won’t see a need to raise rents to cover the expense. However, to receive a license, a property must be approved by a third-party inspector. The cost of the inspection, as well as any remedial actions required to receive approval, must be paid by the property owner, which ultimately will be passed on to renters. So, while city officials proclaim that the cost of a license should not spur rent increases, they ignore the other expenses that they are forcing on rental property owners.
When a property is out of compliance with the licensing requirements, the city will hold a hearing, which can result in fines or the revocation of the license. If a license is revoked, the landlord is prohibited from renting in Denver. City officials didn’t explain how that prohibition will even the playing field.
The sponsor of the ordinance proclaimed,
For the first time in Denver’s history, we’re going to finally know exactly how much rental stock we have and create a communication stream between the city, the landlord and the tenant to make sure that there’s equitable sharing of resources.
She didn’t mention which resources will be shared, what would be equitable, or why the city should even be involved in a private business transaction. But it is safe to assume that the landlord will ultimately be forced to share his resources in one way or another. Otherwise, why is this ordinance necessary?
When controls and regulations are used to even the playing field, we can be certain that the field won’t be level. Some—in this case landlords—must sacrifice their own judgment in order to appease city officials.
Politically, a level playing field means that all individuals are treated equally under the law. But this ordinance does not do so. It provides benefits to tenants by restricting landlords. That creates a very uneven playing field.