Moving the goalposts - New Rent Control Law in Richmond CA

[Tom V.]

http://www.contracostatimes.com/richmond/ci_285208...

I am sure I am not the only reader to pick up this article.  City of Richmond, California enacts a rent control ordinance.   I am not clear on if and how it applies to new construction, but I presume it applies to existing housing. 

Pretty frustrating when the local government can come along and decide to cap the amounts that you can raise your rents and keep you from having your rents keep pace with the market.  

[J. Martin]

Originally posted by @Tom V.:

http://www.contracostatimes.com/richmond/ci_285208...

I am sure I am not the only reader to pick up this article.  City of Richmond, California enacts a rent control ordinance.   I am not clear on if and how it applies to new construction, but I presume it applies to existing housing. 

Pretty frustrating when the local government can come along and decide to cap the amounts that you can raise your rents and keep you from having your rents keep pace with the market.  

@Tom V., that is not quite correct. Costa Hawkins, CA state law, already exempts all housing units built after 1995 from rent control ordinances. So new construction and existing housing with a certificate of occupancy after 1995 is exempt, even if it already exists today.

@Mike R

I wouldn’t be surprised to see Seattle implement rent control. Anywhere you see rapid and consistent year over year rent increases and a liberal-leaning City Council, you have that potential.

@Bradley B,

I generally agree that pro-building policies that increase supply should help stem the increase in rent prices. However, in reality, the only stuff that’s getting built in this part of the cycle is high-end housing. If anything, it would probably raise local rent rates, rather than decrease them, despite the marginally increased overall supply. It has to do with what and where it is built..

“Richmond doesn't strike me as an area that is constrained by a lack of physical space to build, or environmental conditions that prevent building additional units.”

From one anecdotal example, I have left several of my apartment units in Richmond below market to help out the low income tenants by keeping rent increases below 10%, despite huge market increases. And in Richmond where there is rent control, I always rent at the top or above the top of the market.I will begin maxing out rents in Richmond also now at vacancy, instead of letting people ride below market for an extended period.Bummer.. but saw this coming.

@Andrew Fingado and I were talking a while back about how rent control was going to come into place if rents kept increasing like they were.. Well here we go!

All my Oakland units are already under rent control. So I know how this game works. I actually consider a net positive benefit to myself, because I am well-versed in the general rent control process and where to look for opportunities. I'm hoping this will scare off people who aren't used to rent control or don't know what they are doing..