Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Minneapolis Real Estate Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

4,875
Posts
3,430
Votes
Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
3,430
Votes |
4,875
Posts

Minneapolis and Saint Paul pass rent control!

Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
Posted

How will the newly passed rent control measures affect how you invest in the Minneapolis - Saint Paul area?

business profile image
The Moorhead Team
5.0 stars
137 Reviews

Most Popular Reply

User Stats

78
Posts
52
Votes
Mike Moe
  • Realtor
  • Minneapolis, MN
52
Votes |
78
Posts
Mike Moe
  • Realtor
  • Minneapolis, MN
Replied

I smell opportunity for the well trained investor! Hopefully this super restrictive form of rent control passed in Saint Paul is only a short term headwind. Yes it has to be in place for minimum of a year, but the mayor has already stated while he is for rent control, he wishes to quickly make changes to this policy if it passes to still encourage outside investment and development which is needed in the city . That’s nothing to bank on though, as it isn't easy for him to do that.

While this is in place investors are obviously going to have to analyze deals in Saint Paul differently going forward. The typical value add strategy of rehabbing & increasing rents will need to be scrutinized as the renovation investment may not make sense if rents cannot be raised to account for the rehab. On that same note, investors will definitely need to be sure to check the leases in place on a property before offering. Owners who have kept their rents closer to market will likely be able to charge a premium for their properties at sale as the new owner won't have to worry about never catching the market rents with the 3% cap. This could also put more pressure in Minneapolis investments until things are more clear on what/if/how rent control will be implemented there.

Interesting times for sure. In any market there are ways to make money, things like this just make us as investors have to think about how we can do so with the current situation. Can't change the market, just what you do with it.

  • Mike Moe
business profile image
Superior Real Estate Team
5.0 stars
35 Reviews

Loading replies...