San Jose rent control ordinance

[Brad S.]

Hello ! Love this site and great respect for all the Pros helping small timers learn and grow. Questions out of curiosity. - What do you think would be the impact of such kind of ordinance in high growth area like San Jose. Would multi family prices really go down and investor move to other cities. - Can other cities adopt same measures across Bay Area / CA. - How do existing properties go from being not to being rent controlled or does that not happen? Here's the link if you haven't heard already: http://www.sanjoseinside.com/2016/04/20/san-jose-city-council-lowers-rent-control-cap-to-5-percent/

[Chad Hale]

Agree with Minh.  The previous rent controls were fairly balanced (for rent control). I watched the whole debate online.  They are really working in the noise of the issue not doing anything meaningful other than hurting tenants if anyone.

Before all this came up I'm not sure how many landlords actually knew about the exceptions.  I personally used them to help me out on a property where rents had not increased in 20+ years.  Even then the unit was 40% of market rates.  

The law of unintended consequences is going to sting in this case, I have a feeling.

Chad