By RPM Central Valley
Tenant’s groups in California have been working overtime in recent years to make rent control law and as of April 2018 just about every city in the Golden State has a rent control initiative on the ballot.
The measure would allow local governments to adopt amendments, ordinances, or regulations to govern how much landlords can charge tenants for renting apartments and houses. The measure would also repeal the Costa-Hawkins Rental Housing Act, a law designed to prohibit local governments from enacting rent control on buildings first occupied after 1995
Why Rent Control Is A Bad Thing for The Economy
At first glance, most people might think that rent control will be a good thing for the economy as it would place limits on how much rent a landlord could ask for their rental property regardless if they own apartments, condos, town homes or single-family homes.
Rent control will be a disaster for the owners in California because they will no longer be able to raise rents to the market level.
Besides trapping owners with properties where they cannot raise the rent, rent control will also affect the rental incomes that owners receive from their rentals.
Rent control will also lower the value of rental properties and make it harder for owners to rid themselves of uncooperative tenants.
A Statewide Battle
From San Diego to Stockton California, most cities have rent control initiatives on the November 2018 ballot so this “battle” is only going to heat up as we get closer to the upcoming elections.
We will keep you up to date on the rent control battle in California along with providing you with continuing to provide you with useful information you can utilize to improve your rentals and grow your portfolio of rental properties.
To learn more about the services we can offer you contact us today at (209) 572-2222 or click here to connect with us online.