Statewide rent control...

User Forum Topic
Submitted by spdrun on August 31, 2019 - 2:54pm

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-gov...

Submitted by flu on September 11, 2019 - 10:20pm.

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

Not a big deal... not really a big impact ...

Submitted by FlyerInHi on September 1, 2019 - 1:18pm.

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.

Submitted by gzz on September 1, 2019 - 3:54pm.

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.

Submitted by FlyerInHi on September 2, 2019 - 12:51am.

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."

Submitted by flu on September 2, 2019 - 11:06am.

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/cali...

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

Submitted by FlyerInHi on September 2, 2019 - 6:55pm.

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.

Submitted by AN on September 2, 2019 - 10:23pm.

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

Submitted by scaredyclassic on September 3, 2019 - 7:37am.

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

Or perhaps intended

Submitted by gzz on September 4, 2019 - 10:36am.

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.

Submitted by The-Shoveler on September 4, 2019 - 1:16pm.

flu wrote:

3. Single family homes exempt, unless owned by large corporations

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

Submitted by flu on September 4, 2019 - 8:11pm.

The-Shoveler wrote:
flu wrote:

3. Single family homes exempt, unless owned by large corporations

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

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.

Submitted by flu on September 11, 2019 - 10:18pm.

Done deal!

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

https://www.sandiegouniontribune.com/bus...

Submitted by The-Shoveler on September 12, 2019 - 6:57am.

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.

Submitted by The-Shoveler on September 12, 2019 - 10:29am.

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.

Submitted by flu on September 12, 2019 - 10:31am.

The-Shoveler wrote:
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.

I don't think this will be that big an issue because a 7.5% increase is a lot. Plus it will give an excuse to jack up rents annually. versus currently people like me do not raise rates at all until people move out.

Submitted by The-Shoveler on September 12, 2019 - 10:54am.

OK IMO it is just the start of the war on landlords LOL.

Historically it has never been done before.

Personally I think that if Mom & Pop Condo Landlords know they will freak out and sell immediately but what do I know.

Submitted by The-Shoveler on September 12, 2019 - 1:16pm.

California population now 36 million, expected to be 60 million by 2050.

The World’s Dumbest Housing Policy
First California makes homes unaffordable, then it imposes statewide rent control

https://www.wsj.com/articles/the-worlds-...

Submitted by FlyerInHi on September 12, 2019 - 1:45pm.

The-Shoveler wrote:
California population now 36 million, expected to be 60 million by 2050.

The World’s Dumbest Housing Policy
First California makes homes unaffordable, then it imposes statewide rent control

https://www.wsj.com/articles/the-worlds-...

That is so true. But as a homeowner, that allows you to claim your networth is increasing as the housing shortage continues.

Submitted by The-Shoveler on September 12, 2019 - 3:12pm.

"claim your networth is increasing as the housing shortage continues",

Actually not a useless number, there are several ways to tap into it.

I find it interesting we seem to invite the nations homeless to settle with red carpet incentives, then enact rent control in response to the homeless crisis.

Meanwhile we spend 700K for a "1" bedroom homeless housing unit.

Submitted by flu on September 12, 2019 - 8:21pm.

The-Shoveler wrote:
"claim your networth is increasing as the housing shortage continues",

Actually not a useless number, there are several ways to tap into it.

I find it interesting we seem to invite the nations homeless to settle with red carpet incentives, then enact rent control in response to the homeless crisis.

Meanwhile we spend 700K for a "1" bedroom homeless housing unit.

Well that's what "D"'s generally do when it comes to money and finance... then the D's do things like setup shop in places like Nevada and Wyoming so they can avoid the financial mess other D's create....lol

Submitted by scaredyclassic on September 13, 2019 - 7:24am.

The-Shoveler wrote:
"claim your networth is increasing as the housing shortage continues",

Actually not a useless number, there are several ways to tap into it.

I find it interesting we seem to invite the nations homeless to settle with red carpet incentives, then enact rent control in response to the homeless crisis.

Meanwhile we spend 700K for a "1" bedroom homeless housing unit.

Red carpet incentives?

Submitted by The-Shoveler on September 13, 2019 - 8:11am.

Give out $300-$700 cash to each homeless person monthly, pass out food, medical help.
Pass laws so no one can stop you from sleeping anywhere in the city of LA.

etc.. there are a lot of incentives to move to California if you are homeless vs other states.

Add in good weather and you become a magnet for the homeless.

Submitted by FlyerInHi on September 13, 2019 - 9:08am.

It’s a lot easier to beg for money in the big cities than in rural or suburban settings.
I think we need to deport the homeless back home to their families. If California were a separate nation, we could have our own immigration policies.

The druggies and weirdos are attracted by cities. A lot of people immigrate to the cities where costs are high to begin with. they fail to make it and the downward spiral begins.

I just heard that there are about 60000 homeless in LA.

Submitted by gzz on September 13, 2019 - 9:11am.

Who is it that “expects” Cal population to be 60 million in 2050? Not me. 2018 growth was 187,000 people. At that rate we’ll go from 36 to 42 or 43 million in 2050.

Submitted by flu on September 13, 2019 - 9:23am.

The-Shoveler wrote:
Give out $300-$700 cash to each homeless person monthly, pass out food, medical help.
Pass laws so no one can stop you from sleeping anywhere in the city of LA.

etc.. there are a lot of incentives to move to California if you are homeless vs other states.

Add in good weather and you become a magnet for the homeless.

It's going to be funny watching this train wreck unfold. California is like of petridish of what will happen if crazy super majority D's control everything. LA will end up even a bigger cesspool that it has already become. Thank God my relatives sold and moved away from LA permanently...

Submitted by The-Shoveler on September 13, 2019 - 9:32am.

Actually they say California population as of 2018 is 39.x million, expected to be over 40 million in 2019.

anyway :

https://www.reuters.com/article/us-calif...

http://www.californiagreensolutions.com/...

http://worldpopulationreview.com/states/...

Submitted by FlyerInHi on September 13, 2019 - 10:04am.

Haha. The homeless problem in LA is actually a sign of success. People are attracted by success. It’s when they come from Kentucky and can’t make it that they become homeless.

Even the marginal but well located parts of LA are gentrifying. Move away at your own risk. You may miss opportunities and not afford to move back.

Submitted by The-Shoveler on September 13, 2019 - 11:30am.

LA gentrification is mixed as best.

Some areas are going downhill fast.

Selling and maybe moving to a newer up and coming City Like Carlsbad ect.. may not be a bad move (even Oceanside is improving very fast).

I know people who own businesses in downtown LA who are trying to get out while the getting is relatively good (it was better two years ago).

Submitted by FlyerInHi on September 13, 2019 - 11:55am.

Well, shoveler, look at it this way..... back in the late 80s, at the height of white flight, what if instead of buying a “nice” house in the suburbs, one had bought a “run down” apartment building in Hollywood (not even West Hollywood)?

If,in downtown LA, your friends own the buildings their businesses are located in, they are doing quite well. The garment district is also gentrifying. The future is bright.

Submitted by The-Shoveler on September 13, 2019 - 11:56am.

How about Irvine in 1980 LOL.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.