In essence, all rent control policies involve specifying a maximum rent that a landlord may charge for a dwelling. Th...
DelaAugust 18, 2019
why not C?
If the Rental Policies require landlords to alleviate the rental shortages (mentioned in choice C), then landlords would be obliged to overcome all the difficulties of the investments and do it (mentioned in choice B). Yet, when there is not such enforcement, landlords have little motive to overcome the difficulties of this types of investments.
Is answer choice C stronger than B?
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(B) says, "Rent control makes it very difficult for landlords to achieve reasonable returns on any investments in maintenance or in new construction."
(B) is great. By putting a cap on what landlords can charge, it's difficult for the landlords to receive any sort of added return for upgrading their properties or constructing new ones. Thus, (B) does a great job at explaining why rent-controlled landlords would be hesitant to build or maintain, so it's the correct answer choice.
(C) says, "Rent control is a common practice even though it does nothing to alleviate shortages in rental housing."
The problem with (C) is that it does not really do much at all to help explain the landlords' reaction to the rent-controlled policies (it doesn't provide an explanation for why rent-controlled landlords would be hesitant to either build or maintain). Thus, we can get rid of (C).
Does that make sense? Let us know if you have any other questions!
DelaAugust 31, 2019
Thanks!
RaviSeptember 9, 2019
@Dela, you're welcome! Let us know if you have any other questions!
