California Rent Control 2020

[Edit B.]

What are your thoughts on prop 21 2020? This will be a huge game changer if it passes and you invest in CA.

This bill is essentially another shot at repealing Costa Hawkings protections, and if passed will immediately limit what you can charge after a vacancy and allow local governments to now impose rent control on properties that were protected under Costa Hawking

The features;

1.). Upon a vacancy you will no longer be able to charge what you want or bring the property to market. You are limited to 15% during a three year period, and also allowed your rent controlled annual increases as usual.

What this means;

If you have a property that is under market and you plan on renovating it to bring rents to market you will only be able to increase it 15% every 3 years on top of regular allowance.

If you are buying properties with intention of renovating and bringing them to market again limited as above so be careful what you pay for them.

If you simply want to increase rents by more than 15% during vacancy or vacancies within 3 years you cannot and are limited to 15%

2.)

Allows local governments to impose rent control that differs and can be tougher than statewide rent control.

3.)

Allows local governments to establish rent control on properties over 15 years old, including vacancy control