The Consequences of Extreme Rental Market Regulation

[Tristin Crum]

I am curious if anyone has any data that speaks to the consequences of extreme rental market regulation? We hear stories but I am looking for data and it is even better if the data has some level of analysis attached with it.

I am an investor in the Eugene Oregon market. The Eugene City Council recently passed "Phase One Renters Protections", notable is a $10.00 cap on screening fees even though actual costs to screen are 5x to 7x that. They've recently been sued for this.

They are looking at passing "Phase Two Renters Protections" which will limit deposits to 2x rent and will cap rent increases at 5%, if you exceed 5% you will be obligated to pay the tenant 3x monthly market rent in relocation fees which could equate to $4500 to $8000.

"Phase Three Renters Protections" will limit how much you can require an applicant earn and will limit requiring a credit score over 500.

This is all in a state that is already extremely regulated and burdensome to operate within as a landlord. The city of Eugene also has an extremely low rental vacancy rate of 1.5%.