investing in rent control markets

[Mike R.]

All,

curious if we have any owners of multi family properties subject to rent control and if so how is that working out from an investment standpoint?  any advice for MF investors?  Clearly there are investors in NYC and San Fran that still own and operate properties so they must be making money somehow!??!!?!  Any thoughts would be appreciated!  Thank you! 

[Will F.]

Originally posted by @Aaron K.:

Rent control only applies to existing tenants and once a unit is vacant market rent can be charged (at least for now)  if you stay on top of the annual increase it is doable.  In some house hacking situations it can even be a benefit due to some of the just cause rules for having a tenant vacate.  Because if a property is charging below market rent it is valued as such but if the new owner moves into a unit that the market rate is $2,000/ month when the actual rent is $1,000/ month they can come out ahead even if they have to pay $15k in relocation assistance to the tenant.

 Aaron right now rent control only exists on existing tenants and it can be charged more....

But after November election if proposition 10 passes they might be able to cap rents universally and indefinitely.  Even on condos, single family etc.  It would be like socialism.

I'm voting no on prop 10 www.noprop10.org