Enforcement Issues
Some landlords use extralegal means to evade rent controls and attempt to take advantage of housing conditions. Some landlords may step up discrimination against any group they dislike if they believe there is a surplus of prospective tenants. Jurisdictions that implement rent controls may have to pass laws in response such as those forbidding landlords from compelling new tenants to hire the landlord's moving company. In some areas with especially strict rent controls, landlords may require "key money" (a non-refundable deposit). Demanding key money is illegal in most of North America, but since the landlord will invariably demand it in cash, it is very difficult to trace and nearly impossible to prove in court. Rent control enforcement may likewise create considerable bureaucratic hurdles for the repair and improvement of properties, creating a disincentive for landlords to carry out such actions.
Read more about this topic: Rent Control
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