“Just Cause” is Unjust

The city council in Ithaca, New York is considering a “good cause” (often called “just cause”)  eviction ordinance. The bill lists nine “good causes” for landlords to evict a tenant. One is failure to pay rent. However, if the landlord imposes an “unconscionable” rent increase, the tenant will be able to legally withhold the rent.

Not surprisingly, tenants and housing advocates are supporting the bill, while landlords oppose it. One tenant said,

This is not an anti-landlord bill, this is a pro-tenant protection bill. If you’re a landlord who treats people fairly, this bill will not affect you in the slightest.

In other words, as long as a landlord acts in a way that tenants like, there is no problem. But if a landlord doesn’t act the way tenants like, restrictions will be imposed on him, and he will be prevented from acting as he deems best.

If a robber stuck a gun in your face and demanded your wallet, you would not be ceding your property voluntarily. You had a “choice”—do as the thug demands or experience harm. In principle, the supporters of this bill (and others like it) are the same as the armed robber. They are giving landlords the “choice” to act as tenants desire or experience harm.

These “tenant protection” laws are punishing landlords for the “crime” of producing housing. While tenants whine about the housing shortage, they simultaneously seek to impose new restrictions and controls on those who actually produce housing.

On top of that injustice, the bill would essentially impose rent control on landlords. Because an “unconscionable” rent increase will provide tenants with a reason to withhold rent, property owners will be very cautious with rent increases.

Tenants evade the fact that a lease is a contract for a specific period of time. When that time elapses, the agreement expires, and the parties must negotiate a new agreement. Both parties are free to accept or reject the terms offered by the other. If they can reach a mutually acceptable agreement, the lease is renewed.

Tenants don’t like the fact that landlords have a voice in lease renewals because landlords sometimes propose terms that the tenant dislikes. Rather than negotiate better terms or move, the tenant wants to force the landlord renew the lease on the renter’s terms.

“Good cause” eviction laws, rent control, and all of the other “tenant protections” are short-sighted. Advocates see the immediate benefits of these laws but ignore the long-term consequences. Controls and regulations don’t produce a single housing unit. Indeed, controls and regulations discourage the production of more housing. But when that fact becomes obvious to renters, it will be too late.