Rent control, seen by many economists as old-fashioned, has recently made a surprising comeback in high-growth, dynamic economies.
Considering any rent control requires a minimalist approach. It should be easy to determine if the unit is covered by rent control or not and any basis has to be transparent.
The most common form of rent control is where rents are initially freely negotiable but there is a limit on the amount of rent increase (''tenancy rent control'' or ''second-generation rent control'').
Using the consumer price index (CPI) for calculating rental increases has proven to work in many countries, both for tenants as well as for investors.
Tenancy rent control shall be accompanied by vacancy decontrol - when the unit is vacant, rents can be increased by any amount. Newly constructed buildings are usually exempt from rent control.
By using artificial intelligence in the real estate management sector there is room to reduce cost. AI is here to stay, and property managers should be excited about a future where machine learning simplifies otherwise time-consuming (time equals cost) tasks.
Furthermore, when moving towards rent control it is important to manage distortion of economic incentives that might lead to a reduced supply of rental units while keeping any scheme easy to implement and execute.