Preparing for the potential of massive government regulation

Preparing for the potential of massive government regulation

Rental Property Investor · Lexington, KY · Member since 2012 · 115 posts · 64 votes

Hello BP Fam! First off, let's not try to not get super political here, but I think it's good to discuss the potential of how politics could have a massive affect on housing and how we need to prepare and deal with that. Elizabeth Warren recently proposed a bill that included a year long eviction moratorium. It passed in the house. We all assume it'll not pass in the Senate, veto'd by the President, but still... Yikes! We are already seeing big regulation on housing done in California, Washington and other larger cities/states. We are also hearing the cries of rent control or even rent cancelation that are getting louder and louder everyday. Even if you have every property paid off, this would have devastating consequences on real estate investors, property managers, probably the housing market as a whole, etc... When Covid "ends", this WON'T be over. If the election swings a certain way, it's pretty much a known fact that we will see major regulation in ALL sections of industries, including housing. Again, let's not make this too political here, maybe some regulation is good in some areas of industries, but what steps are you taking to prepare for this? Maybe Cali/Washington investors can give us some good input, because they are already facing a lot of this now. Thanks in advance! 

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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y

"...let's not try to not get super political here, but..."

You made my week.  I may still be laughing next week too.  Thanks Zac.

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    6y

    "...let's not try to not get super political here, but..."

    You made my week.  I may still be laughing next week too.  Thanks Zac.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    I don't spend much time worrying about what may be. I voice my opinion to my representatives and then deal with whatever decision is made. If you spent time worrying about every yahoo bill introduced, you'd never get any work done.

    The DIY Landlord Book4.7248 Reviews
  • Rental Property Investor · Lexington, KY · Member since 2012 · 115 posts · 64 votes
    6y
    Originally posted by @Nathan Gesner:

    I don't spend much time worrying about what may be. I voice my opinion to my representatives and then deal with whatever decision is made. If you spent time worrying about every yahoo bill introduced, you'd never get any work done.

    I don’t think you should over worry or stress over it, but it’s good to be prepared for changes. This isn’t some crazy bill that was introduced, this is a bill that has already passed in the house and regulations we are already seeing in major cities. Just seeing how people are preparing for changes, that’s all. 

    “Fail to plan, plan to fail.”

  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    6y

    I believe that things will be good going into the future and I am excited about the opportunities. I am one of those people who adapts well to change and I have prepared myself in that I have acknowledged that change is inevitable. 

    Remember that there will be winners and losers in every market regardless of who is in political power.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    I think @Anthony Gayden said it well. You can find opportunity in any political climate. You may even find better opportunity when politicians you dislike are in office. 

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    Land lording has been around since before the caveman/woman; it is not going away anytime soon! 

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    Moderators note: Political discussion will be removed. This entire thread is walking the line, so please avoid partisan jabs and other non-productive comments. 

  • Investor · IN (indiana) · Member since 2020 · 109 posts · 53 votes
    6y

    @Zac P.

    I think this post begs a lot of questions.

    1. Do you think this is a trend towards UBI (Universal basic income)

    2. What will the Fed do with the 1/3 of the industry that it now owns?

    3. Are we in feudalism?/Are we reverting to feudalism?

    4. Are being prepared for a shift to a new currency? (Wyoming accepts gold now and has 8 major financial entity filings for crypto-banks)

    I think we will just have to wait and see what tricks are on the horizon. I do believe this is uncharted/unprecedented territory that the market has never been in and it stands to reason that we may have a result that the market has never seen.

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    6y

    This is 100% anecdotal but I'm a long time California landlord and I have bought / wholesaled / flipped 100+ homes in my state. If you screen well, have reserves and work with your tenants on issues. The problems seem to work themselves out. 

    I'm current on rent and the one tenant who was late was able to pay the rent from the assistance he got from the state. No complaints here. 

    I do like the California fear mongering though, seems to keep folks who operate out of fear in other markets. 

    Winners and losers in every market. 

  • Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    There are plenty of existing challenges to deal with. I don't stress about what might happen if....

  • Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    6y

    Housing has always been government regulated. The fact that we are all sitting on 30 year mortgages at under 4% is definitely not a free market. It is because the government takes all the risk from the banks. On top of that real estate has historically been highly tax favored with mortgage interest deduction etc. I don't think eviction moratoriums can last. But rent control in various forms is probably here to stay. Its a bad idea, not because I don't want to help poor renters, but because it doesn't solve the problem of housing stock. Expansion of Section 8, tax deduction for rent, change in zoning laws, higher density housing etc are all better solutions than rent control. I do worry about my property in California. If I felt I was losing control over it in terms of who I can rent to and for what price and if evictions were barred, I would consider taking it off the market. The risk of such a high value asset being "occupied" without recourse is too high.

  • Rental Property Investor · Melbourne, FL · Member since 2017 · 114 posts · 108 votes
    6y

    @Anthony Gayden agree. There is nothing new under the sun. Our nation has had crises before. Awareness and preparation are key. This season is devastating but will not be permanent. Real estate does not go away, nor do tenant needs for property, and nor do high quality tenants. That said, this emphasizes the importance of solid cash reserves to weather the storm.

  • Rental Property Investor · Lexington, KY · Member since 2012 · 115 posts · 64 votes
    6y

    Hey guys, thanks so much for the input! 

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