2015
DOI: 10.1080/14036096.2015.1053981
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The Effect of Rent Regulations and Contract Structure on Renovation: A Theoretical Analysis of the Swedish System

Abstract: The standard view is that rent regulation leads to reduced maintenance as the landlord will be able to find tenants at the regulated rent even if the level of maintenance is low. In this article it is shown that the rent regulation system in Sweden interacts with a contract structure where the rent is allowed to increase only if the standard of the apartment is raised compared to when the apartment was new. Ordinary maintenance is included in the rent, and the rent is therefore not allowed to increase when suc… Show more

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Cited by 28 publications
(26 citation statements)
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“…The negotiated rents should spread these costs over the lifespan of the building and not impact rent levels all at once. However, recent years have seen a marked increase of so-called total makeovers in connection to renovations (Lind, 2015a(Lind, , 2015b. In a journalist survey in 2013, with 107 landlords in equally many neighborhoods (comprising a total of roughly 59000 apartments), 90% of the real estate owners said they are financing their renovations through rent increases (Sveriges Radio, 2013).…”
Section: Turn-over Renovationsmentioning
confidence: 99%
“…The negotiated rents should spread these costs over the lifespan of the building and not impact rent levels all at once. However, recent years have seen a marked increase of so-called total makeovers in connection to renovations (Lind, 2015a(Lind, , 2015b. In a journalist survey in 2013, with 107 landlords in equally many neighborhoods (comprising a total of roughly 59000 apartments), 90% of the real estate owners said they are financing their renovations through rent increases (Sveriges Radio, 2013).…”
Section: Turn-over Renovationsmentioning
confidence: 99%
“…Although this is part of the aimsif people are not forced out of their housing due to large rent adjustments, they will be less likely to moveit may have negative effects on housing and land markets. Experiences with rent control have demonstrated that more refined rent-control systems, which allow for limited rent increases, have less negative effects on the functioning of housing markets than do more stringent systems (Skak and Bloze, 2013;Lind, 2015). A transaction-based system, which captures only a part of any value increases, may therefore provide a middle ground.…”
Section: Discussionmentioning
confidence: 99%
“…Most studies on the effects of rent control have, however, focused on the impact of rent controls on the earning potential of private landlords and on their decisions on maintenance (Arnott and Shevyakhova 2014; Lind 2015), investments and the sale of rental housing (e.g., Andrews et al 2011; Autor et al 2012; Block and Olsen 1981). Enström Öst et al (2014) additionally show how rent control affects the socio-spatial distribution of housing.…”
Section: Rent Control and Price Settingmentioning
confidence: 99%