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Los Angeles Tenants "Union" - Universal Rent Control
I was recently in Los Angeles and I saw all sort of posters in Korea town - which has a lot of hard working people who have brought it up from the 90s -- LA riots, slums, etc.
There are posters that say "Housing is a Human Right"
It sounds great as a slogan. But then they really want 'free ****' at the expense of hard working producers. Like House hackers, BRRR investors, small sacale landlords who work their butts off learning REI, and implementing it in their HARD WORK...
And now there are posters all over Wilshire and up and down the streets for the LA Tenants Union. A group that want's to socialize housing in LA, California and the rest of the US.
http://www.dailynews.com/government-and-politics/2...
https://www.facebook.com/latenantsunion
They play the race card by getting non English speakers to sign up and are really getting active in LA. I mean all they have to do is say "Hey do you want lower rent" Sounds so simple, but it's really devastating to the economy and communities.
The investor's choice is to invest where there is No Rent Control in the first place. If you're already holding in such areas, 1031 into units elsewhere. Owner's can't battle or defeat these actions, so seek shelter anywhere else.
Yes Equal Housing is the law, but R.C. only creates more slums so get out while there's someone who will still buy you out.
There is a bill going to vote shortly that I urge everyone to oppose.
Anyone interested in real estate should oppose AB1506
I wrote a letter, feel free to use, copy or amend:
Hi, I oppose AB 1506.
As a rental property owner in LA, I am a small business owner trying to make a difference to my tenants and to my community.
Please do not put me out of business and force me to sell my property.
Repealing the Costa-Hawkins will not "cure" the housing crisis and will add further burden to small business owners like myself who are the lifeblood of Los Angeles. No one with any sense is going to buy or build rental property in California while state lawmakers are proposing to unleash rent control.
The conversation alone could reduce the supply of housing.
Rent control sounds good if you’re a tenant paying the outrageous rents in Southern California, but rent control is one of the reasons that affordable units have steadily disappeared from the market, year after year, since the late 1970s.
I urge you to oppose AB 1506.
Originally posted by @Jeff B.:
The investor's choice is to invest where there is No Rent Control in the first place. If you're already holding in such areas, 1031 into units elsewhere. Owner's can't battle or defeat these actions, so seek shelter anywhere else.
Yes Equal Housing is the law, but R.C. only creates more slums so get out while there's someone who will still buy you out.
You're absolutely correct about the slum part:
https://fee.org/articles/the-case-against-rent-con...
As far as moving out of the areas I wouldn't jump to such a hasty conclusion.
Real estate fundamentally is about LOCATION
Also fair market- supply and demand.
These areas where the socialist groups are targeting rent control tend to be near the ocean, dense cities where there are lots of jobs and decent economy.
There just has to be counter action against Entitlement like this:
Originally posted by @Susan O.:As far as moving out of the areas I wouldn't jump to such a hasty conclusion.
Real estate fundamentally is about LOCATION
Of course BUT "he that runs away lives to fight another day" - - in a non-war zone. I don't have the requisite greed to fight needless battles when there are other choices so easily made. The Ellis act is used to refurb older units but imo, that's an exercise in flogging oneself and for me, Class D properties never yield enough to entice me.
A lot of these groups also want to repeal Proposition 13 for all to increase property taxes. It's to give more money to sacramento legislators to play with
http://www.tylerpaper.com/TP-Opinion/277956/editor...
https://www.youtube.com/watch?v=hoA-uqMB5Yo
Tenants Together organizing in Sac tow. Most landlords are actually 'boutique' smaller than 20 units. The majority of us investors are just hard working people who want a nest egg in retirement. Freedom of private property is all we want
I've followed the links posted above and they make a pretty compelling set of arguments against rent control. Still, I did a little googlin' for 'the economic case for rent control.'
A few reads were interesting, for example, this article In Defense of Rent Control. (By the way, that article has a broken link to an old summary of rent control literature by a Timothy Collins, which I could still find here.)
I've hardly done my due diligence on this. And, in any event, I don't think these pro rent control articles are so persuasive either -- narrowly speaking, it's hard to argue against the long term logic of supply and demand. But, more broadly speaking, because so many people are unsettled by these processes, I'm resistant to categorically rejecting compromise on the issue.
@Gregory Marin It is good to know both sides, the main thing is to be in action and let your elected officials know what you think!
If rent control is made stronger then the real estate segment loses.
Good input. I agree Steve we should let them know that we're active. Home owners too.
Recent Beacon study on economics. From Urban Institute, to Business Insider Mag, to The Economist all have same result:
This is one by "The Economist" which is a popular economy magazine:
A housing/planning and urban development website:
Foundation for Economic Education:
Business Insider:
CEI:
AAGLA was apparently the source of a significant part of the money HJTPA used to get Prop. 13 passed, but their influence has been decreasing. Why not invest elsewhere? Tenants are crammed into apartment units, so it is quite difficult to imagine that rents can go much higher, and certainly not on the rent controlled buildings.
I don't want to invest elsewhere I think California is still good in long run as long as us investors can stand up to new laws.
In Santa Rosa the home owners, landlords got together and fought against rent control and won!
A lot of landlords, home owners and residents are pushing back against LA housing Department and their corruption
Make sure to get active write city council write your local assembly and fed
https://www.change.org/p/say-no-to-ab-1506-because...
AB 1506 is a rule which is the first step towards universal rent control. It's actually being pushed by renters groups in texas, florida, massacheusetts, new York, Oregon, Colorado, just to name a few states with renters trying to get rent control and other anti landlord and anti property owners rights
Sign the petition!
https://www.ocregister.com/2018/01/04/five-things-...
Updates contact your state asssembly member to vote NO on AB1506
They're voting on it under our noses
Spreading to newer buildings, banning rent raises for repairs in LA city, banning rent raises on VACANT rentals, spreading rent control to condominiums, houses, small mom and pop rental investors!
Update
http://findyourrep.legislature.ca.gov
Call your local assemblymember to VOTE NO on AB 1506 and protect homeowner and property rights.
Protect condominiums, houses and newer buildings from RENT CONTROL
Protect your property from expansions in rent control like the notorious LAHD HCIDLA (new LAHD that they changed the name for due to scandals and spending tax dollar money ) REAP Rent Control
Housing Authority of the City of Los Angeles HACLA Housing Authority of the City of Los Angeles
http://www.latimes.com/socal/glendale-news-press/n...
This is update for 2018 Tenants unions submitting expansion of entitlement rent control
If you own property, invest in real estate or are in the real estate industry in LA county, OC, and inland empire this will spread.
http://abc7.com/politics/garcetti-backs-statewide-...
Garcetti is pushing for state wide rent control. He is friends with a lot of the sacramento legislators. They feel like this is a big vote grab.
It's important to educate neighbors about how this is bad for the economy and for neighborhoods. Rent control leads to blight, bad tenants (and bad neighbors) not being able to be evicted, lack of investing, no new development of affordable housing, and contraction in cities
Susan O.
I live in L.A and saw that about Garcetti .
L.A rent control already covers most Multis in L.A
Any buildings build before 1978 ( October I think)
Sounds like he wants to expand to every property including single family homes .
This of course most likely would reduce the building of new buildings in L.A.. but at the same time he says he wants a lot of new housing built
Originally posted by @Joseph M.:
Susan O.
I live in L.A and saw that about Garcetti .L.A rent control already covers most Multis in L.A
Any buildings build before 1978 ( October I think)Sounds like he wants to expand to every property including single family homes .
This of course most likely would reduce the building of new buildings in L.A.. but at the same time he says he wants a lot of new housing built
Yeah developers won't want to invest here they'd rather just go to Texas and build hundred unit developments. Investors are already flocking elsewhere. We have to fight back, contact your local reps and government and tell them they work for US
https://aagla.org/wp-content/uploads/2018/04/FINAL...
This is from the apartment association on how they want to expand rent control and it needs to be fought in the November ballot
Hi @Susan O. Thank you for putting so much energy into sharing information about this issue. My fiance and I recently purchased a duplex that falls under rent control. it is completely disheartening that these politicians support rent control (which is basically forcing us hard-working individuals to subsidize housing for a large population) so the politicians can get more votes. This idea may be popular in places like Los Angeles and San Fran but It doesnt seem like this is a good move for Garcetti in the long run if he really wants to run for president because he is sh*tting all over property owners and property owner rights by supporting RC. If this RC expansion goes through, I think there is going to be a massive wave of evictions, rent hikes, and pulling properties off the rental market and turning them into alternative use (like condos, short-term rentals) to get around new regulations.
I have a couple questions:
1) What can WE do as BP members and CA BP members to stop the spread of this dangerous policy? We all know that more regulations make it more expensive to develop and it restricts supply on the market which creates a larger housing problem.
2) Does anyone have any recommendation for landlord/apartment associations to join? I've done some research on CA Apartment association and others but we would love more information.
Yeah you are exactly right. Also considering he is an L.A native and owns rental property in L.A he should know better.
http://www.latimes.com/business/realestate/hot-pro...
Most landlords in L.A are middle class folks , not super rich landlords. This new rent control law if it happens would apply to condos and SFH too. Many people would not want to rent out their homes if they fell under rent control.
Many tenants are unfortunately are totally ignorant about the actual returns on rental property which seem to be able 3% or so in L.A today.
I recently saw a duplex for sale in the Glassell Park area... $650k , total rents were under $1500 of course rent control tenants. Doesn't make sense to buy that unless someone is planning to evict and raise rents or more likely redevelop the land . All the cities with the strongest rent control have the highest market rents. L.A ,SF ,NYC. It's a policy that maybe had good intentions ...but has bad results in reality.
Just on principle it's crazy that in a capitalist society one would be able to have a government tell a private landlord what they could charge.
I recently read about this crazy story in NYC. This lady was supposedly adopted by some old guy that had a rent controlled unit...and now she's living in it for $100 a month..market rent is like $1800... In NYC I guess a rent control lease can be passed down. She's also been a big pain for the landlords.
The way things are going , we could see stuff like this in L.A pretty soon.
Tenant in $100-per-month apartment: I’m never leavinghttps://nypost.com/2018/04/28/i-got-adopted-at-58-years-old-and-scored-a-sweet-apartment-deal/
OCR Article Rent Control Initiative could obliterate State Housing Market
https://www.ocregister.com/2018/05/05/rent-control...
Tell them NO TO RENT CONTROL!
You can also manually look up your local California reps:
Use this link to easily contact your reps locally and nationally:
https://helpforlandlords.com/landlord-state-guide-...
List of Apartment Association, Landlord and Small Property Owner associations
Susan O. I wouldn’t be surprised if this passes . Unfortunately there are a lot of people that think all landlords are greedy and making a fortune. Since they don’t teach investing or business in school , a lot of people just don’t get how it works.
Originally posted by @Joseph M.:
Susan O. I wouldn’t be surprised if this passes . Unfortunately there are a lot of people that think all landlords are greedy and making a fortune. Since they don’t teach investing or business in school , a lot of people just don’t get how it works.
Hopefully it doesn't
It looks like there's always a lot of media and spreading false lies about rent control. Because there are not enough landlords and investors (who are mainly small time people like all us on BP) that are fighting for it or contacting news, media, government etc to tell them our story.
https://www.ocregister.com/2018/04/27/as-call-for-rent-control-rises-some-provisions-raise-concern-among-landlords/
Susan O.
An article just published by Washington Post about these “rent strikes” in L.A .
These tenants are going to the homes of relatives of landlords and harassing and intimidating them with a bullhorn .
On top of it they are refusing to pay rent !
—-
After the hour-long drive in late May, the group converged on the sidewalk in front of a two- story house with Spanish-tile roofing belonging to Gina Kim — their landlord’s daughter. Chung Suk Kim had purchased the seven-building apartment complex in Los Angeles for $8.5 million in September. Eviction notices for all 80 residents — almost all of them black or Latino — went up a few weeks later, indicating that the owner wanted to convert the units, located near the University of Southern California, into student housing.
“Vulture landlord, get a real job! Vulture landlord, get a real job!” the tenants shouted. A pair of police cars soon arrived.
But chanting is not the only way the tenants are making their feelings known. Since the eviction notices were posted some eight months ago, they have refused to pay rent.
https://www.washingtonpost.com/national/los-angeles-tenants-increasingly-engaging-in-rent-strikes-amid-housing-crisis/2018/06/02/6b91c340-65af-11e8-a768-ed043e33f1dc_story.html