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@Kevin Sobilo:
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A president talked about rent control. Is a website about real estate not suppose to address that? It’s clear what politics are in favor of rent control and how that’s going for them.
No kidding right geesh.. Rent control is a huge topic to RE buy and hold investors full stop.
It sounds like it is as I suggested where they won't create a rent control law but change the tax code to take away some deductions (maybe depreciation) if rents are increased over 5%. This would only apply to landlords with 50+ rentals I believe as well.
So, because the federal government can't make a law about rent control, they coerce compliance with their wishes using money. This is why I believe in a small federal government. By giving them such a large chunk of money we give them more power than they are entitled to have because they can offer to give it to us back but only if we do as they want.
Unpopular opinion, but if rent control is done right it’s not a bad thing. It’s when there’s a patchwork of laws in a local area that really messes market dynamics and then people don’t move and others are forced to unecessarily. There needs to be mechanisms to be able update a property and raise its rent to market that isn’t overly harmful to tenants or landlords, and then you’d have a good functioning market.
I agree its not a bad thing, but it isn't a good thing either. It is a WRONG thing and there is a difference.
In your utopian view of things the world works in lockstep and everyone gets what they want from the situation. An investor gets a modest return and the tenant gets decent housing at an affordable price. Sounds like a win-win.
Whether that is possible, and it may be for short periods of time, or not doesn't matter because it’s a WRONG thing. Our country is made for us to make of it what we wish and for that we are entitled to do the best for ourselves that we can. The government limiting our ability to take advantage of opportunities is contrary to the values this country was founded on. So, for our country it is a wrong thing because it runs contrary to our values.
It’s 100% a subjective thing, it runs contrary to your values not the country’s (I don’t know if you surveyed the country where the opinion would land). You deem it wrong from your POV - which is fine, and part of what makes the country great that we can have a difference of opinions and debate the merits of various opinions/ideas.
I’ve experienced it both ways - as a landlord I can get more money in my pocket, always welcome - but I’m also not buying something if it’s not cash flowing. As a prior renter I had a proposed rent raised from $2800 to $3500 (with no upgrades/changes to the unit or building), a 25% increase, which I definitely could not afford at the time, and forced me to spend a bunch of money moving. That’s not a great experience, and just makes it harder on the little guy trying to get ahead in life.
I believe there’s a middle ground where both parties are satisfied. That’s just my opinion though.
