Strictest Rent Controls in U.S. Going Into Effect - St.Paul MN

[James Hamling]

I have to start by saying for all the outreaching St Paul investors who thought "nah, can't be, nobody is that dumb, it won't happen", sorry friend, I feel for ya. 

For those not in the know, Saint Paul MN passed what came to famously be known as the strictest rent controls in the nation. Among some of the fun of it all, a absolute cap on rent increase at 3% per 12 month period, regardless of change in tenancy, operational expenses, really anything, just flat out capped at 3% no matter how far into the red an investor goes. 

As this is now days away from going into effect, I am curious to hear out the thoughts of area investors on such. In the months and weeks leading up to this day I have heard a lot of remaining investors saying "nah, not gonna happen" or incorrect assumptions of being "grandfathered-in" so wouldn't affect them, of my personal favorite, the fact how the stipulation allows an investor who has done upgrades to make special request to be allowed to raise rents higher then 3%, yes, it has that "ability" through a system St Paul has said they are still "considering" the mechanism to apply for such (no approval process/application = no ability to even request such). 

Remember the Wack-a-Doodle played by Woody Harrelson in the movie 2012, just knowing exactly what's coming and picks out a nice spot front row to just watch it all blow-apart, yeah, that's kinda how I feel on all this, lol.