I recently bought a house in CA. Knowing this legislation was pending I didn’t get roommates. I’d rather AirBnB than be forced into rent control. That’s now two rooms off the market.
California Approves Statewide Rent Control
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Re: California Approves Statewide Rent Control
#182Earlier quoted context omitted.
> It’s here to ensure people can still find affordable places to live. Rent control does the opposite. It radically reduces choices and increase on price on people looking for a place to live. Rent control chooses a small handful of existing renters to be winners. And it makes everyone else a loser. Except it's also shitty renters, because it traps them in place. Sure it gives them a home somewhere. But it denies the…
That’s FUD. It works great in other countries and if strict can give equal chances to tenants no matter your background.
Anything you can cite?
Re: California Approves Statewide Rent Control
#183Earlier quoted context omitted.
Rent control is a thing world wide. It’s not populism. It’s the same concept as free healthcare or free education. It’s here to ensure people can still find affordable places to live. You can’t make everything an investment if you want a healthy society.
It will not help you find an affordable place to live, it will help those who already have existing leases hold on to them forever. Rent control does not create an abundance of housing, it just creates a constituency of people that gets a better deal than those who don't.
Correct, rent control in the Boston area created haves and have-nots. It was great for those lucky enough to get in, but the rest of us were effectively subsidizing them.
Re: California Approves Statewide Rent Control
#184Earlier quoted context omitted.
Of course everyone told you to get a rent controlled place. The government is mandating your landlord gives you money, so why not take it? The point still stands that rent control is a terrible way to keep rent down, it causes a ton of problems.
Gives me money? What? So arbitrary rent is a much better way to keep rent down? Come on...
Arbitrary rent? No, the market rate.
And yes, if you’re living in a rent controlled place and paying $1000 per month when the same place is going for $3000, it’s virtually a cash transfer from the landlord to you every month.
That’s why you hear about massive ($100k+) buyouts in SF.
Re: California Approves Statewide Rent Control
#185Perhaps an alternative real solution to the housing crises is the abolishment of professional landlords themselves. Why should we support a system where people can own many properties, each feeding them 1/2 of someone else's paycheck? Public-owned housing is the future. It works in Europe and it can work here. Treating housing as an investment vehicle is fundamentally incompatible with the ideal of housing being affo…
So, you're saying people shouldn't be able to own apartment buildings? That will really help housing in dense areas.
People could presumably still "own" apartments.
Re: California Approves Statewide Rent Control
#186I am a landlord in Oregon, but not California. The curious, although ultimately predictable, outcome of the new rent control measure in Oregon is that while I have historically had an arrangement with my property management to be restrained in annual rent increases, they are now advising a default annual increase of the maximum allowed (7 percent before inflation). This is because larger adjustments cannot be made if…
It also results in a lot of empty units.
I was talking with a real estate agent in SF and he said it’s not unusual for landlords looking to sell their rent controlled building to just let units sit empty.
Why? Because it can increase the value of the building by hundreds of thousands of dollars. Losing out on $24k worth of rent each year is easy if you know it comes with an extra $300k in your pocket when you sell.
Re: California Approves Statewide Rent Control
#187Re: California Approves Statewide Rent Control
#188Earlier quoted context omitted.
>>> If you made a viable investment in a property and are currently renting it out, wouldn't rent increases just need to equal inflation in order for you to maintain the same level of profitability? Not necessarily - taxes on property owners don't follow inflation. They may go up greatly compared with inflation. >>> I hardly see why maximizing profits should be seen as a necessity---especially when it comes at the co…
Maybe more people selling property instead of collecting money forever for winning the land lottery 50 years ago it is a good thing.
That would remove rental units from the market and further increase cost of living for folks who can’t purchase.
What would be the positive effects?
Re: California Approves Statewide Rent Control
#189I’m surprised to read negative opinions about rent control. The alternative to rent control is having one’s rent double next week. I’m amazed that rent control was not a thing!
Most rent control implementations are far too restrictive and create severe market distortions that can last generations. This one, thankfully, is not, and the allowable increases mean units are unlikely to get too far out of whack with market rates.
The market's too high, lets implement market controls to keep prices at the market.
Re: California Approves Statewide Rent Control
#190Do statewide rules even make sense, in such a large state as California? The housing markets in the rural east and north surely are not identical to the housing market in the Bay area, San Diego, and LA. Even Sacramento's rentals are an average $1000 cheaper than the SF area.