Will Rent Control Help Los Angeles Rentals?
One of the hottest topics in the news this year has been rent control.
Even though it’s an idealistic topic the big question is will rent control help Los Angeles Rentals or not?
The answer to this question depends on who you ask but the reality is that if you study the numbers, rent control has the ability to adversely impact the California rental market for the following reasons.
Owners Wouldn’t Be Able Rent Their Properties for The Fair Market Rent
If rent control were to pass in California one of the first unintended consequences that we’re going to see is landlords not being able to rent their properties for what they are worth.
Owners Would Invest Less Money in Their Rentals
With less revenue coming in from their rental properties and their costs increasing by the year, most landlords will start spending less money on improving their rental properties each year. This will effectively create more urban slums, affecting the quality of life and property values for where those rentals are located.
Most Renters Are Unsympathetic
Sadly, many people will not be sympathetic to the plight of owners in California and this could be why some owners are selling their rentals now before rent control laws are passed.
It’s A Supply and Demand Issue
If you’ve studied economics anytime in the past you know that what we’re experiencing with the Southern California housing crisis is a supply and demand issue.
Even though many cities across the Golden State have increased their housing supply in the last 3 years, housing supply is still far behind where it should be in California.
Instead of looking at the cause of the problem and coming up with solutions to fix it, many people are only considering rent control and this will create dire consequences for our state in the months and years to come.
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