Author(s): ISSA AKANJI ADEDOKUN | Vol. 22 (1) April, 2025
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 well-established regulatory system, can enhance a reasonable balance between protecting tenants and encouraging investment in the rental market.
KEYWORDS: Rent control; Theories; Rental housing; Legislation; Policy.