Expounding Theoretical Foundations of Rent Control Through A Moderate Approach: A Critical Appraisal

Abstract

The dynamics of development and change in rental housing had engendered structured modes of
effecting landlord and tenant contractual relationship through rent control mechanism. Rent
control has been described as an interventionist instrument introduced by the government to check
incessant and arbitrary increases in rent by the shylock landlord. This policy instrument is not
without its foundation, as various theories and rationales for its imposition have been put forward
by scholars. To this end, this paper sets out to expound the theoretical foundation of rent control
with a view to espousing an ideal theory. The ideal theory is capable of guiding policymakers in
making all-encompassing rent control legislations that integrates socio-economic concerns of the
relevant stakeholders in the housing market. Using the doctrinal method of research, this paper
critically explores three distinct theories of rent control that have been identified. Beginning with
the libertarian theory espoused by Epstein; the personhood theory remodeled by Radin; and the
economic welfare approach. Within the latter perspective, the paper proposes a moderate theory
drawn from economic welfare account as an ideal theory capable of interrogating the most
effective model for regulation in the rental market. The proposed theory shows that a wellestablished regulatory system, can enhance a reasonable balance between protecting tenants and
encouraging investment in the rental market.