I agree that rent controls, in any form, are counter-productive to the point of being textbook "bad policy".They should just remove all rent control.
But what will happen of course is tighter controls with worse unintended consequences.
Perversely rent-controls also tend to benefit higher-income tenants to the disadvantage of lower-income groups and we can already that effect playing out here.
However, once introduced rent controls are extremely difficult to repeal as they generate a constituency of vocal tenant "insiders". There is also the distinct possibility that further regulations will be introduced to close-off increasingly creative avoidance strategies – a case of bad regulations chasing bad policy.