Rent control laws are intended to transfer wealth from those who own and rent their property to those that don't own property. These laws take away income from those who rent their property by reducing the rent they would otherwise receive in a free market economy. Rent control laws exist for two primary reasons (1) The number of renters who vote for politicians exceeds the number of landlords who vote, and (2) The politicians that support the transfer of wealth, support the doctrine: "From each according to their ability, to each according to their needs."

Rent Control Laws

Rent control laws in California transfer wealth from property owners to renters. This is undeniably true. Rent control laws exist because the voting power of renters exceeds the voting power of property owners. Thus, many politicians are motivated to take wealth from property owners and give it to renters in order to secure their positions of power as elected officials.

Notwithstanding the benefit to renters and politicians who vote for the transfer of wealth, rent control has several disadvantages: (1) The value of rental units is depressed resulting in the loss of wealth and lower property taxes for the government, (2) reduced new construction of rental units in rent controlled areas, (3) The inability of rental unit owners to maintain their properties due to the loss of income. Rent controlled areas are continuously deteriorating. Los Angeles, San Francisco, and Oakland are perfect examples of what happens under rent control.

Rent Control-City of Los Angeles

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