Prices of rents across the U.S. are shooting up, especially in major cities. Fortunately, there are rent-controlled apartments, which give people the chance to find a place to live in without breaking the bank. What are rent-controlled apartments and are you qualified to live in one?
Rent-controlled apartments can be found in a number of municipalities in the U.S., reports Money. The concept aims to set limits on the rental price on apartments and buildings built before 1947.
For example, in New York City, the Rent Guidelines Board only allows rent control under certain conditions.
"For an apartment to be under rent control, the tenant (or their lawful successor such as a family member, spouse, or adult lifetime partner) must have been living in that apartment continuously since before July 1, 1971," states the guidelines.
What are the pros and cons of rent-controlled apartments?
While the ultimate benefit to living in rent-controlled apartments is that you can be sure that your rent will not go up so high once you renew your contract with your landlord, there are several major downsides to living in one. Realtor.com notes that there might be unexpected fees that landlords can ask from you from time to time.
"This is often paid in cash in exchange for securing the lease," said Realtor Deborah Steiner.
This may be one of the landlord's attempts to recoup the costs of lowering the rent. If, however, you are asked to pay for such "hidden fees," the publication advises on searching for another house instead.
Another downside to living in a rent-controlled apartment is that landlords may sometimes resort to "illegal, uncomfortable, aggressive, and sometimes downright dangerous practices" in order to keep you from renewing the contract and get a higher rent from new occupants.
Aside from this, occupants living in rent-controlled apartments may often be too comfortable with his arrangement that they may no longer consider buying a home despite the rise of rental prices in today's market.
