Home › Forums › Housing › CA Landlords. What do you plan to do if the rent control initiative passes in November?
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June 20, 2018 at 12:06 PM #22580June 20, 2018 at 1:41 PM #810286ucodegenParticipant
You can never fix a supply and demand problem through controlling prices. Why would any apartment builders risk building new units when they become at risk of not covering their costs?
June 20, 2018 at 1:55 PM #810287spdrunParticipantWhat will I do? Nothing. San Diego/SD Co doesn’t have rent control for pre-1970s units, even though it’s allowed. This measure doesn’t create rent control, only allows passage of local laws. San Diego (County) is unlikely to pass any sort of rent control since it hasn’t already.
June 20, 2018 at 4:46 PM #810289The-ShovelerParticipantThere are a few parts of SD county that do have rent control (some trailer/RV parks etc..).
I am not sure why the above have not been sold already as some are in some prime locations for condos’ etc…
My guess is that if SD implements rent control over a wider area it will create a lot of chaos and displacement as landlords desperately try to sell ASAP.
LA county rent control is a lot more prevalent so it could turn ugly IMO.
June 20, 2018 at 4:56 PM #810290CoronitaParticipantI just don’t see how this would solve the unaffordable housing issue. All I see is landlords jacking up rent more regularly so they make sure to keep as close to current market rates as possible. Maybe some people will motivate and sell.
Or exchange and convert to a primary/vacation home.
I wonder what the extra eviction rights for the tenant consists of.
I do think rent control would be adopted by certain places more readily than others. San Francisco, Los Angeles, Santa Clara, San Jose comes to mind as places they would adopt this immediately….San Diego, Irvine, most of Riverside…not so much….
June 24, 2018 at 3:40 PM #810304masayakoParticipantSame here. I have some property. I usually don’t increase rant for good/stable tenants ‘cos I don’t want the trouble to look for new tenants.
If they rent control initiative passes in November, I will automatically increase 3% per year just to keep up with market price. I am sure all landlords will do the same. So, take that.
June 24, 2018 at 9:16 PM #810305FlyerInHiGuestApartment complexes always increase rent annually.
You should do the same also, even if only 1%. Bad business practice not to increase rents. Tenants take is for granted and don’t appreciate anyway. Train them early.June 25, 2018 at 3:23 AM #810307HobieParticipantI view annual increases in the higher end market ( or quality long term tenants) as nitpicking. I’m thinking contract builds in 3% increase with a 3% courtesy discount for on-time payment history or preferred tenant status, etc. Keeps good tenant happy. Now if you are renting to college kids, 3% auto increase 😉
June 25, 2018 at 6:19 AM #810306CoronitaParticipant[quote=FlyerInHi]Apartment complexes always increase rent annually.
You should do the same also, even if only 1%. Bad business practice not to increase rents. Tenants take is for granted and don’t appreciate anyway. Train them early.[/quote]completely disagree. there is an entire pain in the ass factor you are not considering. Maybe your rent pool is of lower quality, but I like to deal with tenants of higher quality that do not cause a lot of drama, who do not have a problem paying on time, and who do not like to move around. I have very low months of vacancy that I have to factor in as cost. And most of my tenants, when they do move out, it’s because they have saved/invested enough to buy their own home or have relocated to a different part of the country.
The main reason I am more than happy to keep rents below market is I value my time rather than spending my time dealing with vacancy. it’s extra days enjoying hobbies, spending time with family, going racing, or going to see a movie , going hiking, or traveling. Life is short…i am not trying to maximize my incoming funds if it means significantly increasing the pita factor. I don’t “need” to squeeze every penny out of people at this stage in my life. Who wants turnover all the time? perhaps if İ have no one or nothing else to do….or because i needed more time to blog on on piggington frequently. As far as I am concerned, it pays the bills and as long as it doesn’t inconvenience me, I dont mind cutting people a slight break.
June 25, 2018 at 6:20 AM #810308CoronitaParticipant[quote=Hobie]I view annual increases in the higher end market ( or quality long term tenants) as nitpicking. I’m thinking contract builds in 3% increase with a 3% courtesy discount for on-time payment history or preferred tenant status, etc. Keeps good tenant happy. Now if you are renting to college kids, 3% auto increase ;)[/quote]
That’s what I feel too. and I don’t necessarily mean higher end market being expensive real estate too. just people with good quality financial backgrounds…
So is your idea something like an annual rebate program? I was thinking something like of an end of year rebate that would be discretionary, but generally reimbursed.
June 25, 2018 at 8:29 AM #810311spdrunParticipantWhy reimburse anything? Treat your tenant decently, but charge what the market (they) can bear. You’re not a charity — it’s a business.
June 25, 2018 at 9:27 AM #810312CoronitaParticipant[quote=spdrun]Why reimburse anything?[/quote]
Because if thsts what it take to keep my tenant for 5+years without bugging me versus your tenant that moves out every year leaving you with a month or two of vacancy each year and time spent on finding another tenant , time that I’d rather spend on a track, I’ll take the easy tenant and the rebate for the win.That 3% is so miniscule it’s only.purchase is an inflation hedge. won’t even pay for tires and a days worth of e85
June 25, 2018 at 12:23 PM #810313HobieParticipantNo rebate. Do you do email billing? Monthly statement shows rent X less discount X = same rent. Statement would have +3% each Jan. Was thinking elaborating on reason for discount, but now think that would open you up to some kind of discriminatory claim.
June 25, 2018 at 2:39 PM #810314FlyerInHiGuestFlu, to each his own. Each person runs his business differently.
The “luxury apartment homes” are the ones charging auto increases. And they keep security deposits.
Perhaps you’re projecting how you would feel because you’re biased to saving to buy a house. But people will pay for the convenience and a nice place. They know that moving costs money.
I don’t pay for many things or conveniences, but people do all the time.
June 27, 2018 at 12:18 AM #810327FlyerInHiGuest[quote=Hobie]No rebate. Do you do email billing? Monthly statement shows rent X less discount X = same rent. Statement would have +3% each Jan. Was thinking elaborating on reason for discount, but now think that would open you up to some kind of discriminatory claim.[/quote]
You could give them 15 days or 1 month free rent as an inventive to renew the lease. But if they let it lapse to month-to-month, then rent increases apply.
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