Who's investing in California?

Question

Preface: Having lived (rented) and managed multifamily property in California, I know it is extremely tenant friendly and sometimes feels like crazy town.

I recently came across this article (Yes its from February) about San Francisco's largest landlord, Veritas. In my opinion, the "I Team" is pretty blatantly editorializing to make Veritas look bad, rather than just report the facts.

I team Investigates SF Largest Landlord

Specifically troubling to me is this sentiment: "They (Veritas) don't see the relationships, the community, the contributions these tenants have made," Brad Hirn of Housing Rights Committee of San Francisco told Dan Noyes. "They see dollar signs."

Sounds to me like he just described a disciplined real estate investor.

...Or should we as landlords/investors/property managers etc start basing rent rates on the "contribution" a tenant has made to their community? (A fair housing violation waiting to happen, right?)

Anyway, who's investing in California? What are your goals? Whats your angle in this climate of low cap rates and high anti-landlord/rent control tide?

Irina Belkofer · Answer

"Veritas insists they want all their tenants to remain as long as they want, no matter what they pay"

WOW.....sounds like a socialism in California

That's why Rent is so high - who in right mind would buy rentals there? Where you can't decide yourself what's your property highest and best use?

The state should build its own subsidized housing and don't make owners to get losses on their businesses

Amit M. · Answer

The First Lady interviewed pays $380 per month for a unit probably valued at $3500 or more per month. And Veritas had the gall to legally raise her rent to $850! She’ll probably contest the increase at the rent board anyways and get a reduction.

Textbook case of San Francisco = crazy town.

And btw, the pass through for mortgage increase was repealed by that supervisor shortly anyways.