Who among the following benefits the most from rent control policies?

• A. The local government collecting property taxes
• B. Tenants who are able to secure apartments at the controlled rent
• C. Landlords who own multiple rental properties
• D. Prospective tenants searching for apartments

Answer: (B)

Verified step by step guidance

1. Understand what rent control policies are: they are government-imposed limits on the amount landlords can charge for renting out properties, typically set below the market equilibrium rent.
2. Identify the groups affected by rent control: landlords, current tenants, prospective tenants, and local government.
3. Analyze the impact on tenants who already have apartments under rent control: they pay less than the market rent, so they benefit directly from lower housing costs.
4. Consider landlords' perspective: rent control usually reduces their rental income and can discourage maintenance or investment, so they generally do not benefit.
5. Evaluate prospective tenants and local government: prospective tenants may face shortages or long waits, and local government tax revenue is not directly increased by rent control, so they benefit less or not at all compared to current tenants.