S.21-2.12: Liberalize Rental Markets Act (Law'd)

[reagente]

Liberalize Rental Markets Act

Section I. Title
i. This bill may be known as the “Liberalize Rental Markets Act”

Section II. Substance
i. The Tenant Protection Act (S.20.1-12) is repealed, effective immediately.

sponsor: reagente

I believe it was a mistake for the 17th session to pass this bill. The Tenant Protection Act as written is incredibly vague to the point where it creates enforcement problems and likely is creating pricing distortions. As we recover from the COVID-19 pandemic, it is important that the Southern Region help landlords and tenants by allowing the market to accurately price rental stock.

Minimum 48 hours debate

[President Punxsutawney Phil]

Couldn't we just suspend the law's operation for a period, of, say, six months?

[At-Large Senator LouisvilleThunder]

I think the text of the original act is very vague as there wasn't a real definition of price discrimination in the act. However I wonder what the advantage would be to charge different prices for different tenants if their apartment unit is the same size and has the same built in features.

[President Punxsutawney Phil]

I think the text of the original act is very vague as there wasn't a real definition of price discrimination in the act. However I wonder what the advantage would be to charge different prices for different tenants if their apartment unit is the same size and has the same built in features.

Perhaps it might be a good idea revising the original bill to have a definition of price discrimination in it?

[reagente]

I think the text of the original act is very vague as there wasn't a real definition of price discrimination in the act. However I wonder what the advantage would be to charge different prices for different tenants if their apartment unit is the same size and has the same built in features.

I think there are a number of good reasons. Even in theory "identical" units are located different places in the building with different times to reach the unit and different views of the city (which has to have some impact on value). It also may be the case that your bad luck means you are next to an annoying neighbor and the only reason you'd be willing to stay is if you paid a lower rate.

Additionally, and more importantly, there's a cost for changing each tenant. It makes quite a bit of sense to offer a premium for people who lock in longer leases to avoid these costs.

Also, wouldn't this prevent would be tenants from negotiating the price of their lease (or would it create a scenario where if a landlord wants to lower prices to get the one marginal customer he has to lower prices for everyone?).

Once you add these exceptions, a ban on price discrimination is pretty toothless, especially if landlords can marginally tweak amenities (or in future constructions make some rooms like 1 sq ft more or less) to make units "different"

[reagente]

Any further thoughts on this legislation?

[President Punxsutawney Phil]

Any further thoughts on this legislation?

I am inclined to vote in favor, reluctantly.

[reagente]

Any further thoughts on this legislation?

I am inclined to vote in favor, reluctantly.

Motioning for a vote. 24 hours for objections

[President Punxsutawney Phil]

No objection.

[President Punxsutawney Phil]

Final vote. 48 hours.

[President Punxsutawney Phil]

Aye

[If my soul was made of stone]

NAY

[reagente]

Aye

[President Punxsutawney Phil]

2 ayes, 1 nay. This bill passes.