California Rent Control

Califronia Rent Control

California rent control has been a hot topic for a while. Governor Gavin Newsom signed into law legislation that will impose statewide rent caps, making it the second state to do so. (Oregon passed similar statewide controls earlier this year.) The law would take effect January 1 but is retroactive to March 15 of this year.

Although we are against excessive rent increase by landlords, this law can have a negative impact on many aspects of the market, such as maintaining the property. As real estate professionals in our view not only this law discourages real estate investors to become landlords but also discourages developers to build more and add more inventory.

California rent control has been a worry of many landlords. Particularly, in our community we have many landlords who, for a very long time, charge below market rate because they value their tenants, however, in case of any needed major improvement they will have to think twice. Consequently, this may effect the desirability of the building for it’s tenants.

Below is the link where you can download the specifics of the new law.

AB1482_Guidelines – rent control

For more information feel free to contact me.

 

New article every Friday.

Sina Omidi

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