Housing activists frequently decry the growing corporate presence in rental housing. The activists fail to realize that the policies they advocate are a significant reason why. Housing activists call for rent control, “right to counsel,” eviction moratoriums, “ban the box,” and numerous other restrictions and mandates that shackle landlords. Activists and tenants are making the problem worse.
Most rental properties are owned by “mom and pop,” i.e., landlords with only a few properties. Typically, such landlords manage their properties themselves, and they are willing to work with tenants when problems arise. Because their business is small, most lack the resources to deal with the growing number of obstacles facing landlords. Many are getting out of the business because the expense and hassle isn’t worth the effort.
In contrast, corporations have the resources to deal with the myriad regulations confronting landlords. They have economies of scale. They can handle the ever-changing laws regarding rental properties. However, these businesses are less personable and willing to work with tenants. And this is the source of much of the angst regarding corporate rental properties.
In making it increasingly difficult for “mom and pop” property owners to operate, housing activists are creating the very problem that they now decry. They are driving smaller landlords out of business, and corporations are filling the void.
As they usually do, housing activists declare that more controls and restrictions on landlords will solve the problem. In truth, it simply exacerbates the problem. Housing activists see every problem as a nail and the government hammer as the only solution. They fail to recognize the fact that their “solution” is making the problem worse.
Imposing more controls and restrictions on landlords will not produce a single new housing unit. It will, however, discourage individuals from producing the housing that the nation so desperately needs.
Exactly.