California “Rental Affordability Act” Likely Passing in 2020
Not sure why no one is discussing this once again- In November the “Rental Affordability Act” is likely to pass according to polls.
This bill removes protections from Costa Hawkings which made it illegal for CA cities to regulate vacancy.
This bill includes a 15% rent increase limit within 3 year period, upon vacancy. Meaning if you buy a property that has tenants in it and is significantly below market you can only increase rents by 15%. Or if you own a property that is severely under market and you would like to raise rent to market when tenant leaves you will not be able to do so.
This will destroy the property value of anyone who is under renting as anyone who is purchasing will not be able to bring it up to rent even if vacant.
Other provisions of this bill allow for newer properties to be mandated, another protection Costa Hawkings provided