Statewide rent control…

[spdrun]

Looks like a statewide rent control bill that caps rent increases for all housing older than 15 years old at 5% + inflation is going to be voted on this year. Governor Newsom supports it…

https://www.sacbee.com/news/politics-government/capitol-alert/article234582287.html

[FlyerInHi]

Politicians want the non voting public to believe they are doing something about cost of housing. But housing won’t go down unless there is more supply than demand. That means a lot more building which ain’t gonna happen because the voting homeowners will oppose any kind of building in their neighborhoods. .
I have a friend who agree with me in principle but he will oppose any kind of increased density where he lives.

[gzz]

The failed rent control bills in San Diego and Chula Vista scared a lot of landlords into giant rent increases, 50%+, while they still had a chance. Same will happen here. It will also induce landlord to try for the max increase if it use it or lose it.

Now 5%+ inflation is a pretty big increase still if it is done every year.

[FlyerInHi]

I personally believe there should be an automatic rent increase of at least 3% every year. The power of compounding!

I know a lady landlord who didn’t include a rent increase and she can’t bring herself to increase rent again because the last time was so much drama. It’s funny, the tenant would moan and groan every month he paid rent. He felt “betrayed” because he’s been a tenant for 12 years.

Can you believe a woman told me that she’s been in the community “a long time before I arrrived”. I told “well, the past is past. Your seniority in the community gives you no special rights.”

[Coronita]

If you read the fine print, there’s actually a few nuggets that mean this really won’t be as bad as some say it will be, even assuming it goes through..

https://www.lamag.com/citythinkblog/california-rent-control/

The proposal is 5% above the inflation rate, which in CA is 2.5%. So that means a total cap of 7.5% per year. That’s a pretty substantial rental price increase per year imho. The main purpose of this bill is to cut down on predatory evictions. The irony to this is this “cap” will end up turning into a guaranteed rental increase floor, which more landlords will probably attempt to raise the rents every year and discourage landlords from long term lease arrangements.

Also, there are rules governing exemptions..

The abridged version: proposed CA state wide law
1. Rent price increases capped to 5% per year above the 2.5% inflation index: total maximum annual rent increase: 7.5%
2. Properties built 15 years and newer exempt
3. Single family homes exempt, unless owned by large corporations

[FlyerInHi]

Like you said flu, it’s a change without a difference.
It’s politicians trying make non voters who are being squeezes feel like some relief is ahead.

[an]

Unintended consequences of the fake actions is that good long term tenants will probably get their rent increased.

[scaredyclassic]

[quote=AN]Unintended consequences of the fake actions is that good long term tenants will probably get their rent increased.[/quote]

Or perhaps intended

[gzz]

Now revised to 7% plus inflation and a 5 year sunset date when it stops being law.

It is really so weak the people who get hit with before-effective-date increases will be the main people affected.

[The-Shoveler]

[quote=flu]
3. Single family homes exempt, unless owned by large corporations[/quote]

Not sure if Mom&Pop exemption applies to condo’s

[Coronita]

[quote=The-Shoveler][quote=flu]
3. Single family homes exempt, unless owned by large corporations[/quote]

Not sure if Mom&Pop exemption applies to condo’s[/quote]

Condos no, single family homes …yes…But reality is 7.5% rental cap is a lot.

The more I research and read about it, some landlords are really gouging people, and it’s usually the ones most financially vulnerable. The spirit of this law is meant to protect gouging on basic necessities such as shelter. I might not agree on the implementation of this…But the spirit of this law was intended to protect the most vulnerable. I can sort of understand what some people are going through when housing because unaffordable.

[Coronita]

Done deal!

Time to raise rent prices before it kicks in in January.

https://www.sandiegouniontribune.com/business/real-estate/story/2019-09-11/statewide-rent-cap-appears-likely-to-become-law-would-be-a-first-for-san-diego

[Coronita]

It’s really 5% + inflation adjustment, whatever that will be….

Not a big deal… not really a big impact …

[The-Shoveler]

I am wondering if this applies if a landlord wants to sell their property?

“landlords would need to pay relocation assistance to a renter if they want to convert their buildings to condominiums or make substantial renovations.”

May need to pad that increase a little to make up for that.

I am also thinking this may cause a surge of condo sales from Mom & Pop landlords just because they do not want to deal with this. Also Rent-control begets more rent-control.

Would not be too surprised to see a surge in evictions as well over the next 2-3 months.

[The-Shoveler]

Weird you would think this would be a “TOP” story, but nothing seems to be being broadcast on media anywhere LOL.

Seems like there is a concerted effort to keep this quiet.

Maybe no one will notice until it is too late LOL.

[Author]

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