Atlanta has joined a growing list of cities and states considering a “Tenant’s Bill of Rights.” Contrary to the claims of the proponents of such laws, the proposed law is more accurately a bill of wrongs. Among the provisions in Atlanta’s bill of wrongs are:
- A right to counsel in eviction hearings
- Rent “stabilization,” also known as rent control
- Protection from discrimination based on previous evictions (a form of “ban the box”)
Under rent control, landlords can raise rents only by an amount determined by government officials. In some municipalities rent control also includes other provisions that limit a property owner’s freedom to set the terms and conditions for renting his property.
As is typical, the advocates of rent, whether in Atlanta or elsewhere, focus only on the short-term benefits while ignoring the long-term harm. We can easily see the people who will immediately benefit—current tenants. What isn’t as easy to see are the countless victims of rent control—those will be unable to find rental housing in the future.
Numerous studies have found that individuals living in rent-controlled are less likely to move. This makes sense. They are paying below market rates for their housing. It is a bargain, and they don’t want to give it up. At the same time, many property owners convert their properties to condominiums or other uses not subject to rent control. This reduces the rental housing stock.
The combination of lower turnover and reduced rental stock results in a demand for housing that exceeds the supply. The supply shortage makes it difficult for those entering the rental market, such as college graduates or those moving to a city. And the current beneficiaries of rent control will find it difficult to obtain new housing when their needs or budget changes. While some tenants herald the immediate benefits of that they will receive today, they ignore the harm that they will face in the future.