Hello, I was ignorant about Prop 10 until I joined this forum. I have a few questions
1. If your place is rented for say $x, can you keep renting for that rent after Prop 10 is passed? or do you have to lower the rent?
2. If the tenant moves out, are you allowed to increase rent? If yes how much?
3. I am reading that builders will not be motivated to build new housing. why is that? Is it because a lot of people buy properties as investments and rental income?
4. What will Prop 10 eventually do to home prices?
Thanks in advance!
5. And would Prop 10 be applicable to ADU's as well?
Problem is it keeps investors out of California real estate. Especially developers, rehabbers, the types that take old dilapidated properties and fix them nice.
Also bad tenants (gangs, hoarders, the types that party all day and don't keep neighborhood clean stay FOREVER) This is why the rent controls don't work. They ruin neighborhoods
So it could reduce your value 10-30% or more
And yes to ADUs it would allow any property suceptible to rent controls
This website has a good summary of the issues
Thanks @Mark Wood