Meaning of rent control - the eye of the beholder
On a Sunday morning, a relative asked me about the rent control board. This question led to a meaningful dialogue and robust debate. While debating I realised that the subject of rent control seems to have a dichotomy of its own. My family member argued from a socialist point of view, while I took the stance of an economist as I desperately worried about the impact it would have on the economy, private land lords and citizens of Namibia. I then, as an aspiring political scientist, decided to indulge in further research.
It is during this research period that the dichotomy elevated. It was a conflict that came about in my debate and many intellectual ones, a conflict between the economy and politics (in this case when it came to rent control).
In countries where there are housing shortages especially in democratic states where people can express themselves freely, a measure such as rent control is inevitable, because tenants outnumber landlords and governments use it as a means to control or avoid housing shortages. In many instances the government would use rent control as a temporary measure to hide the real problem – housing shortages. However, the more deeply a harmful government programme is entrenched, the more politically impossible it is to change it.
To my family member rent control could be defined by the work of Dr M. Walker who defined it as “a form of tenant protection adopted because housing is a basic need like sunshine and fresh air and its provision ought not to be left to the vagaries of the marketplace”. However, Dr M. Walker’s second definition of Rent control represented my view, “Rent control is a form of price fixing that increases the shortage of housing and ultimately reduces the ability of tenants to choose where and under what conditions they live”.
If governance, coordination and evaluation is not regulated, the rent control will not benefit the poor, or stop inflation in rent prices, nor will it prevent rent gouging, or reduce slums.
Rent control gains support because it regulates the prices of apartments. Tenants will pay what is expected according to the ratings of the apartment. This would restrict landlords from charging ridiculous prices for average apartments. I applauded this idea, though I reflected to myself and asked who will rate the apartments? Will it be the Namibian rent control board? Those are questions that need to be clarified once the Namibian rent control board is established by Law.
However, in countries that have implemented rent control, it is evident that it has consequences whether intentional or unintentional.
The consequences are that rent control would discourage rental housing construction if a favorable consensus is not reached between tenants, government and flat owners.
There needs to be a creation of a Union such as the one is Sweden, “The National Association of Tenants” who bargain with landlords on rent prices. A “Landlords Association” could as well be a good initiative, as they could communicate with the rent control board, and consult with the Association of Tenants and avoid irregularities. This is a good approach or else maintenance of flats could be reduced, resulting in deteriorating apartments that resemble government apartments. This is what is meant by Rent control annihilates tenants choice of under what conditions they will live. They can end up choosing an apartment but see no maintenance for longer periods. Proper planning is indeed needed.
President Hage G. Geingob announced his “Harambee prosperity plan”. A plan that is said will fast track implementation. Effective governance and service delivery, outlined in Chapter 3 of the Harambee Prosperity Plan is the first pillar. If this pillar is taken serious when it comes to the rent control board, then implementation by government could be a walk in the park.
So, I would like to bring you back to when I read an article in the newspaper that government says it will make rent control board operational as a matter of URGENCY to resolve the issue of high rentals and accommodation problems and ask, is rent control really a solution to accommodation problems?
Tom Edison Shilongo is studying towards a Masters of Arts in Political Science at the University of Namibia where he also served in the Student Representative Council.
It is during this research period that the dichotomy elevated. It was a conflict that came about in my debate and many intellectual ones, a conflict between the economy and politics (in this case when it came to rent control).
In countries where there are housing shortages especially in democratic states where people can express themselves freely, a measure such as rent control is inevitable, because tenants outnumber landlords and governments use it as a means to control or avoid housing shortages. In many instances the government would use rent control as a temporary measure to hide the real problem – housing shortages. However, the more deeply a harmful government programme is entrenched, the more politically impossible it is to change it.
To my family member rent control could be defined by the work of Dr M. Walker who defined it as “a form of tenant protection adopted because housing is a basic need like sunshine and fresh air and its provision ought not to be left to the vagaries of the marketplace”. However, Dr M. Walker’s second definition of Rent control represented my view, “Rent control is a form of price fixing that increases the shortage of housing and ultimately reduces the ability of tenants to choose where and under what conditions they live”.
If governance, coordination and evaluation is not regulated, the rent control will not benefit the poor, or stop inflation in rent prices, nor will it prevent rent gouging, or reduce slums.
Rent control gains support because it regulates the prices of apartments. Tenants will pay what is expected according to the ratings of the apartment. This would restrict landlords from charging ridiculous prices for average apartments. I applauded this idea, though I reflected to myself and asked who will rate the apartments? Will it be the Namibian rent control board? Those are questions that need to be clarified once the Namibian rent control board is established by Law.
However, in countries that have implemented rent control, it is evident that it has consequences whether intentional or unintentional.
The consequences are that rent control would discourage rental housing construction if a favorable consensus is not reached between tenants, government and flat owners.
There needs to be a creation of a Union such as the one is Sweden, “The National Association of Tenants” who bargain with landlords on rent prices. A “Landlords Association” could as well be a good initiative, as they could communicate with the rent control board, and consult with the Association of Tenants and avoid irregularities. This is a good approach or else maintenance of flats could be reduced, resulting in deteriorating apartments that resemble government apartments. This is what is meant by Rent control annihilates tenants choice of under what conditions they will live. They can end up choosing an apartment but see no maintenance for longer periods. Proper planning is indeed needed.
President Hage G. Geingob announced his “Harambee prosperity plan”. A plan that is said will fast track implementation. Effective governance and service delivery, outlined in Chapter 3 of the Harambee Prosperity Plan is the first pillar. If this pillar is taken serious when it comes to the rent control board, then implementation by government could be a walk in the park.
So, I would like to bring you back to when I read an article in the newspaper that government says it will make rent control board operational as a matter of URGENCY to resolve the issue of high rentals and accommodation problems and ask, is rent control really a solution to accommodation problems?
Tom Edison Shilongo is studying towards a Masters of Arts in Political Science at the University of Namibia where he also served in the Student Representative Council.
Comments
Namibian Sun
No comments have been left on this article