California Real Estate Q&A Discussion Forum
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hemlane-a9392011949df124ea8ee63be2fb270c9423d6cd446ec67af23c96616e618606.png)
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Rent Control: Glendale, Pasadena, San Mateo, Santa Ana, Alhambra
https://caanet.org/glendale-tenant-activists-launc...
There's tons of Tenant unions
It's important to get the word out to SINGLE FAMILY Home owners too
Rent control usually leads to lower Single family house values especially if the houses are located near rent controlled housing. It's like subsidized wellfare housing. you don't want to be close by as good tenants usually leave and the 'bad' tenants you know the ones who are loud, pack rats, or criminal types stay. Also Julia they are trying to change rent control to affect single family homes. It's sad because if you do an ounce of research you can immediately see that Rent control does more harm to communities than good.
Instead of new quality affordable housing that is newer and nicer buildings, we get slums, with landlords having no incentive to keep up the property but just get minimal rent and have trash filled, broken windows, bad tenants, druggies etc who just pay the minimal amount of rent. This trickles into houses and condo prices leading to ugly neighborhoods.
Rent control usually leads to lower Single family house values especially if the houses are located near rent controlled housing. It's like subsidized wellfare housing. you don't want to be close by as good tenants usually leave and the 'bad' tenants you know the ones who are loud, pack rats, or criminal types stay. Also Julia they are trying to change rent control to affect single family homes. It's sad because if you do an ounce of research you can immediately see that Rent control does more harm to communities than good.
Instead of new quality affordable housing that is newer and nicer buildings, we get slums, with landlords having no incentive to keep up the property but just get minimal rent and have trash filled, broken windows, bad tenants, druggies etc who just pay the minimal amount of rent. This trickles into houses and condo prices leading to ugly neighborhoods.
Share the below studies and articles with your local leaders, city council, California state reps etc. I've compiled this list straight off bigger pockets postings!
https://www.buildium.com/blog/ab-1506-threatens-re...
https://www.bloomberg.com/view/articles/2018-01-18/yup-rent-control-does-more-harm-than-good
https://web.stanford.edu/~diamondr/DMQ.pdf
standford study recent showing rent controls do not work for economy nor do they help who they're inteded to
https://mises.org/library/unintended-consequences-rent-control
Rent control is as ad as bombing neighborhoods
https://mises.org/wire/rent-control-makes-good-politics-and-bad-economics
Good politics bad economics
NYTimes
http://www.nytimes.com/1989/05/30/opinion/how-rent-control-hurts-the-poor.html
https://www.pasadenastarnews.com/2018/04/03/pasade...
In Pasadena as well. This is very bad for home owners too as rent control leads to run down housing and not being able to control bad people in good neighborhoods. For instance it would be near impossible to evict gang members and hoarder bad elements. I know I managed a bad rental in South Central in the day before we just had to sell it. We couldn't evict these gang members and they took over the building under protection of the Los Angeles Housing Department and RSO.
They don't seem to understand that rent controls don't work in the free economy. They are more for getting votes from low income renters and not about actually improving neighborhoods
https://mises.org/wire/rent-control-makes-good-politics-and-bad-economics
This article explains the politics behind rent control and how even though it doesn't work politicians still keep pushing for it.
![Jo-Ann Lapin's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/399547/1698854126-avatar-joannl.jpg?twic=v1/output=image/crop=427x427@0x0/cover=128x128&v=2)
Susan thank you for your well written post.
![PropStream logo](https://bpimg.biggerpockets.com/no_overlay/uploads/forum_ads/logo/917/1722266297-forum-ad-logo.jpg?twic=v1/output=image/contain=96x96)
- PROBLEMS WITH RENT CONTROL
- It discourages investment in rental properties. When your rent is limited you are certainly going to invest a LOT less in new construction or the renovation of rental units.
- Lower rents mean lower investment property values and, combined with fewer rental units, means lower property tax revenue for the city of Chicago. Of course, Chicago doesn't really need more tax revenue, right?
- Landlords will be caught in a double bind between restricted rents and rising property taxes. That will further depress prices.
Share this with your government officials. Same thing is happening in Los Angeles, San Francisco, Sacramento, Houston, Seattle, Portland, Boston, New York City etc
![Manolo D.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/278083/1694583029-avatar-mand.jpg?twic=v1/output=image/cover=128x128&v=2)
When there are people out there who are considered activists for rent controls and fighters for the low income, there are also the opposite, investor activists who want to get the best bang for their buck. This will be one of the main reasons why I will not be a househacker or be a landlord in general. My take on this will be, just be rigorous on your screening and letting your guard down is not what you can afford. With regards to price points, it will be the same story, it will be a low entry when you buy and low exit when you sell, if you bought high, then that’s on you, if you already bought and feel that didn’t see it coming, maybe you should sell today. Government officials will always side the lower end of the spectrum as they are
more pain in the behind rather than those people who can afford to lose a little or big, versus than that of them if they lose a little, will lose everything and government will have to spend for them, the government will try to avoid this cost if there is another alternative.
![Amit M.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/157510/1621420068-avatar-sf_investor.jpg?twic=v1/output=image/cover=128x128&v=2)
yes, the ballot initiative in November's 2018 election in California will be very important for SFH owners to take note. They're trying to overturn costa-Hawkins, which will allow local governments to put SFH's and condos under rent control.
As we get closer to elections, we should be *active* on BP to help defeat that terrible measure!
@manolo d
It's just getting too extreme. Usually in the short run changes in new rent controls hurt real estate investors. In the long run it can actually boost appreciation because supply is so limited. Its counterintuitive but a quick google search will show why these liberal areas have high appreciation and under supply. Where other areas like Texas Florida where it's easy to build have over supply and prices reduce in downswings
I keep investing in these areas because appreciation tends to be really good due to limitted building. Usually areas like Los Angeles, New york that are under rent control have the HIGHEST appreciation. So it's often good for long term holders. Not necessarily the best for developers or short term holders. I've actually benefitted from rent control in some ways because the more rent control there is it LIMITS the building of housing. Just google search economists takes on how market caps lead to reduction in suplly it's all over
From the Boston small property owners alliance SPOA:
Eternallyvigilant, fighting for your small property owner rights. Multi-unit apartments, condos, and singles. |
![Manolo D.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/278083/1694583029-avatar-mand.jpg?twic=v1/output=image/cover=128x128&v=2)
Susan O. Sorry, I won’t be reading your long post nor do anything that will “fight” for anything. One thing that I know is, if it is a law, it must be followed - your opinion will not matter, they are laid out in black and white. I apologize but I hate activists both for and against anything. You can go ahead and submit your concerns but other than that, why not keep it to yourself, and maybe to your closest friends, i mean, why bother anybody else when say for people like me, find it a waste of time.
![Scott Mclaren's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/313663/1695139134-avatar-bcrsdb.jpg?twic=v1/output=image/cover=128x128&v=2)
Those stories are outrageous! It only took a few minutes to read. I hope that kind of crap doesn't spread
Update on LA City This will spread in California. Call and write garcetti and city council that you're against it. There will be no development and investment in LA housing
Garcetti needs to be voted out. He jumped onto this last minute when they started getting the signatures for expanding rent control.
Garcetti supports California state wide rent control expansions and LA city
Why don't they just build more affordable housing to meet the demand?
http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-may-2018-california-landlords-say-they-ll-back-1527887009-htmlstory.html
![Amit M.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/157510/1621420068-avatar-sf_investor.jpg?twic=v1/output=image/cover=128x128&v=2)
thanks for posting this @Susan O.
Looks like there will be a lot of money thrown against the costa Hawkins repeal initiative. That’s good to know :)
As for that alternative, I don’t think it’s a good idea to initiate anything limiting rents. Maybe it will work for large property owners, but it will be bad for small landlords throughout CA.
![BAM Capital logo](https://bpimg.biggerpockets.com/no_overlay/uploads/forum_ads/logo/906/1718818456-forum-ad-logo.jpg?twic=v1/output=image/contain=96x96)