New and Expanding RENT CONTROL in California! Pass On to others!
https://caanet.org/votervoice/ (contact politicians)
Protesters trying to get their rents lowered. Costs are going up for landlords and investors, but they want to dramatically cap rents on the backs of hard working investors like BPers.
Several state lawmakers want to give city and statewide expansion of strict rent controls-- almost socialist. Taking away rights of homeowners, property owners, housing providers, and landlords
A bill that would do so marks the most significant move yet in a growing movement to cap rents as California’s economy booms and housing production lags.
The momentum is very much on the side of rent control. There are huge groups like "" which are nationally sponsored are spilling money and resources into local city elections to push rent control and increase bureaucracies in cities.
We need to get politically active as investors and landlords. These entitlement groups are trying to take your property rights away! We all know on BiggerPockets how HARD we work for what we have earned.
Use this link to easily contact your reps locally and nationally:
https://caanet.org/votervoice/
You can also manually look up your local California reps:
http://findyourrep.legislature.ca.gov/
Tell them NO TO RENT CONTROL!
This is background on the bill:
Oddly enough, I just wrote a short paper on this topic. I reviewed data dating back to 1960. If you review the purchase price of a house vs the rental on that house, you'll find that (more-or-less) the rental price has been pegged to the purchase price of the house. To say this another way, landlords have been perfectly reasonable in setting the prices of their units. In recent years, there was a significant disparity due to the decreased home prices. That said, you could see a flatline in rental prices, after the crash, which would have eventually closed that gap. Unfortunately, the housing prices started increasing significantly again in 2010 which wasn't enough time for rental prices to adjust.
Rent Control is not the answer. Determining the underlying cause of insane housing appreciation (which in large part is the lack of supply) and addressing that issue is the right answer. The problem is that, from a political perspective, it's just not as sexy as rent control. Nor does it resonate with as many people who haven't stopped to think about these issues.
Ryan
Originally posted by @Ryan Wamsat:
Rent Control is not the answer. Determining the underlying cause of insane housing appreciation (which in large part is the lack of supply) and addressing that issue is the right answer. The problem is that, from a political perspective, it's just not as sexy as rent control. Nor does it resonate with as many people who haven't stopped to think about these issues.
Ryan
I agree ryan
2018 Bloomberg
https://www.bloomberg.com/opinion/articles/2018-01-18/yup-rent-control-does-more-harm-than-good
https://www.economist.com/the-economist-explains/2015/08/30/do-rent-controls-work
Rent Controls dont work
2015 Business insider https://www.businessinsider.com/does-rent-control-work-no-it-actually-increases-rent-prices-for-most-people-2015-9
http://www.tenantstogether.org/resources/housing-long-beach tenant union group with big money from unions promoting rent control. They're actually pushing for 2020 full california rent control on SFR and condos too. They're trying to repeal Costa Hawkins and to cancel the prop 13 property tax caps
OC Santa Ana
http://freakonomics.com/podcast/rent-control/
Also see the Stanford study on rent control
This stanford study states that rent control causes less affordable housing and less housing stock. low inventory is due to things like rent control
High wages also cater to land lords and investment companies. So they see renters who are willing to pay more, the rent will go up. also look at the regional vacancy rate? if its super low ...rents sky rocket. BTW... if the workers in the area are paying more then 33 percent of their wages...then that is not right. The higher the rents, the more likely low paid service workers will leave and small business will shut down! Do you want to walk into a restaurant and see half the tables full of dishes and it takes 30 min for your order to be served to you? https://vendingproservice.com/why-a-lot-of-small-business-closing-down-everywhere-in-vancouver/
Originally posted by @Lorin K.:
Lorin this sort of knee jerk reaction to escalating rents will lead to more issues.
Statewide rent control just passed in California and Caliofrnia usually is the first then it crosses like dominos to other states.
They're discusing this in Massacheusets, Colorodo, Florida Washington, Oregon, Minnesota, Ohio etc. The democratic party will try to push rent control into those states next
All this I mentioned 3 years ago is now being pushed behind closed doors under the pandemic guise. Politicians trying to push through
RADICAL RENT CONTROL
RENT STRIKES WITHOUT FEAR OF EVICTION
LIMITS ON RENT INCREASES BETWEEN TENANCIES
Now's the time to act since most don't
http://rentalhousingsurvivalfund.org/
caanet.org
If you're in another state then just google search ____ your state then Apartment association or "landlord association"
A lot of good resources too