Issue Overview
State and local governments are increasingly examining policies that regulate residential rental housing, including rent control, rent stabilization, tenant protections, and landlord-tenant requirements. These policies raise important questions about housing affordability, rental housing availability, private property rights, and the operation of residential rental properties.
Rental regulations encompass a broad range of policy approaches, from limits on rent increases and eviction restrictions to rental property registries, tenant screening requirements, and other rules governing landlord-tenant relationships. While many of these proposals are intended to improve housing stability and affordability, their potential impacts on housing supply, property owners, tenants, and local rental markets warrant careful consideration.
The National Association of REALTORS® monitors legislative and regulatory developments affecting rental housing and provides research, policy analysis, and advocacy resources to help state and local REALTOR® associations understand emerging issues, evaluate policy proposals, and engage in informed discussions with policymakers and other stakeholders."
NAR's Approach to Rent Regulations Policy
The National Association of REALTORS® supports policies that expand rental housing opportunities, encourage investment in new housing, and preserve existing rental properties. NAR recognizes the importance of housing affordability and stability for renters while supporting the rights of property owners and a healthy rental housing market.
NAR opposes rent control and rent stabilization policies, citing concerns about their impact on private property rights, housing investment, rental housing availability, and long-term affordability. Restrictions on rental pricing can discourage new housing development, limit resources for property maintenance and improvements, and create additional costs and administrative burdens for property owners and local governments.
NAR encourages state and local policymakers to pursue practical, balanced approaches that address housing affordability and tenant needs without discouraging rental housing investment or unnecessarily restricting property rights. In jurisdictions where rent regulations are in place, NAR supports reasonable safeguards that recognize property owners' operating costs, encourage continued investment, and promote fair and transparent regulatory processes.
Key Policy Considerations
Rental housing regulations can have significant implications for housing affordability, property rights, housing availability, and landlord-tenant relationships. As state and local governments consider new policies, understanding their potential impacts is essential to developing effective, balanced approaches.
- Housing Supply and Investment
- Policies affecting rental income, operating costs, and property management can influence decisions to build, purchase, maintain, or improve rental housing. Policymakers should consider how proposed regulations may affect new housing development, long-term investment, and the availability of rental properties.
- Housing Affordability and Stability
- Rent regulations and tenant protections are often intended to address rising housing costs and housing instability. Evaluating these proposals requires consideration of their effectiveness in assisting renters, potential long-term market impacts, and how they interact with broader efforts to expand housing opportunities.
- Private Property Rights
- Rental regulations can affect property owners' ability to manage their properties, establish rental terms, and recover operating expenses. Policy proposals should account for established property rights, contractual obligations, and the financial responsibilities associated with providing rental housing.
- Tenant Rights and Responsibilities
- Landlord-tenant policies address important issues involving housing conditions, lease agreements, eviction procedures, tenant screening, and other aspects of rental housing. Effective regulatory frameworks should provide clear, consistent protections and expectations while recognizing the legal rights and responsibilities of both tenants and property owners.
- Regulatory Costs and Administration
- Rental registration, licensing, reporting, and compliance requirements can create additional expenses and administrative responsibilities for property owners and local governments. Policymakers should evaluate whether proposed requirements are necessary, clearly defined, and proportionate to their intended benefits.
- Targeted Housing Assistance and Policy Alternatives
- Policymakers should consider whether proposed regulations effectively reach households facing the greatest housing challenges. Targeted rental assistance, housing production incentives, preservation programs, and other approaches may offer opportunities to address affordability and housing stability without broadly restricting rental housing investment.