Rent control for star-up in order to give incentives

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Reference no: EM131759044

React to thought of a rent control for start up businesses for young people:

Introducing rent control for star-up in order to give incentives to people to start their own companies. However, there might be severals problems associated with this idea.

Firstly, I think that the amount of offices where rent control might be enforced could be limited to state owned properties, because developers and private companies might be discouraged to build new ones, if they knew that the return on their initial investment could be prolonged due to rent controls.

Secondly, it may happen that companies may abuse the rent control by starting new entities over and over again after the end of initial period, claiming to be eligible for the rent control mechanism again.

THOUGHTS

Reference no: EM131759044

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