I totally agree with you folks that this law goes in the wrong direction. If there is a shortage of affordable dwellings, it would make more sense to cut taxes, especially for landlords and apartment builders.
But the details of this particular law don’t sound like much of a restriction.
The rent increase restrictions exempt new construction for 15 years,
and landlords may raise rent without any cap if renters leave of their
You get natural turnover in any apartment building. So whenever anyone moves out, there’s no restriction on what you can set the rent at for the people moving in to fill the vacancy. And they can raise rent by 7% plus inflation each year. At 2% inflation, after 5 years that’s an allowable 54% increase.
But I think it will have three negative effects:
- It will disincentive landlords from doing upgrades to existing apartments more than 15 years old.
- It will discourage landlords from offering first-year discounts.
- It will encourage government to further muck with and break the free market economy.