What is rent control? How will it affect the rental market in California?
Rent control is the control or regulation for the maximum amount of money that can be charged for rental housing.
In California, we’ve seen a huge increase in the public’s interest in having statewide rent control here since our state is one of the most expensive in the United States to rent a home.
How Will Rent Control Affect California?
As an experienced management company, we can tell you that if statewide rent control were to be implemented in California it may ultimately have negative impact on the rental market.
With rent control, landlords will not be able to get the fair market rent for their properties and some smaller owners may not be able to properly maintain their rentals because rent control will affect their ability to earn the income that they need to pay for repairs and other expenses.
Besides adversely affecting some owners, rent control will also make the local rental market more difficult for renters because it’s highly possible that many owners will end up selling their rental properties rather than continue renting those properties within the constraints of rent control.
Following the defeat of Proposition 10, our elected officials have been busy with creating new rent control proposals which the Governor has promised to sign when they reach his desk.
After the news that the State of Oregon has implemented statewide rent control, it’s likely that we may see California take major strides on the statewide rent control front in 2019 unless more people speak up in opposition of rent control like they did when Prop 10 was stopped in 2018.
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