Rent control has been a central issue for politicians in California since the November 2018 elections. Now that statewide rent control is becoming a reality many people want to know how rent control will affect them,
In this article, we will provide you with several helpful tips on what to expect from statewide rent control in California.
Understanding Rent Control in California
The law limits yearly rent increases at 5% plus inflation for the next 10 years. Had the policy been in place this year, rent increases in the Los Angeles area would be limited to 8.3% while those in San Francisco would have been capped at 9%.
There are a number of exceptions to these rules. The rent cap would not apply to apartments built within the last 15 years or single-family home rentals unless they’re owned by corporations or other institutional investors.
Limits on rent increases will not change for those currently living in rent-controlled apartments. However, the new rules extend protections for renters living in newer complexes in cities with rent control. In Los Angeles, for instance, rent control limits increase to about 3% or 4% per year for those living in apartments built before October 1978. Tenants in buildings constructed between that time and 2005 will now be subject to the statewide rent cap.
How many people would the law affect?
About 2.4 million California households would be affected by the new rent cap in addition to those living in single-family home rentals that meet the law’s requirements, according to an estimate by UC Berkeley’s Terner Center for Housing Innovation.
An analysis of rental listing data by real estate website Zillow found about 6.7% of the properties statewide in the company’s database last year were subject to rent increases that exceeded the cap.
While the new law allows for rent increases that are much higher than average wage growth, renter advocates argue it will prevent sudden surges at levels that could drive people from their homes.
Source – LA Times
Contact RPM Central Valley
To learn more about rent control in California, or to speak with us about our property management services, contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.