Landlords in the age of regulation

By : J. David Chapman/May 29, 2025

The COVID-19 pandemic didn’t just reshape how we work and live—it fundamentally altered the relationship between landlords and tenants. In the years since, a new regulatory environment has emerged, and landlords are finding themselves navigating an increasingly complex landscape.

At the height of the pandemic, eviction moratoriums—federal, state, and local—temporarily halted removals for non-payment, shifting the risk and financial burden almost entirely onto property owners. For many small landlords, especially those with just a few rental homes, this was a tipping point. Some sold their properties and exited the market altogether. Others tightened screening criteria or raised rents to hedge against future risk.

But the regulatory shift didn’t stop when the moratoriums ended.

Many cities have since implemented new landlord registration programs, requiring annual fees and documentation of ownership, lease terms, and property conditions. Some municipalities are also exploring or expanding rental licensing programs, which include regular inspections and compliance with more stringent maintenance codes.

In some markets, rent control—long thought politically unpalatable in much of the U.S.—has re-entered the conversation. While few states have passed strict caps, proposals for rent stabilization, limits on rent increases, or mandatory renewal offers are gaining traction. In the background, tenant advocacy groups have grown stronger, pushing for protections like “just cause” eviction laws and limits on application fees and security deposits.

Landlords today are adapting in a few key ways. First, they’re becoming more professional. Many mom-and-pop operators are hiring property managers or legal counsel to help stay compliant with changing regulations. Second, they’re being more selective. With limited recourse if a tenant defaults, landlords are prioritizing strong credit, steady income, and longer-term leases.

There’s also a subtle shift in investment strategy. In some markets, long-term rentals are giving way to furnished mid-term or short-term rentals, which offer higher flexibility and less exposure to restrictive regulation—at least for now.

Ultimately, regulation is a response to housing pressures and past abuses. But like most things in real estate, balance is key. Policies that protect tenants from instability are vital, especially in tight housing markets. But over-regulating can reduce rental inventory, increase costs, and push good landlords out of the business.

We’re still learning where the post-pandemic pendulum will settle. In the meantime, landlords who want to stay in the game will need to remain informed, nimble, and ready to adapt.

J. David Chapman, Ph.D., is professor of finance & real estate at The University of Central Oklahoma (jchapman7@uco.edu).