In the Czech Republic, rental housing is viewed as a complementary part of housing policy, which helped to prevent mass privatization of multifamily residential buildings – but rent controls and tenure security have prevented the growth of market-based rental supply. Various policies have attempted to compensate for losses in the rental stock, including the provision of subsidies for construction of new municipal rental stock and a grant support program for social rental flat construction. The government also supported rental tenure by providing restitution of private rental buildings, while retaining rent regulations, but didn’t extend these regulations to new private housing – meaning the private sector faced two different regulatory regimes, resulting in many landlord-tenant disputes.
Due to these ongoing issues, there have been debates about whether housing associations (nonprofit operators and developers) should be attracted to build and manage social renal stock. Additionally, the government launched a pilot project that utilizes part of the private rental stock for social housing, in which private landlords have guarantees from the government on the risks and costs of nonpayment of rent, dwelling damages, and dispute resolution.
Source:
Peppercorn, I.G. & Taffin, C. (2013) Rental Housing : Lessons from International Experience and Policies for Emerging Markets. Washington, DC: World Bank.
Link: https://openknowledge.worldbank.org/handle/10986/13117