AB 828 Update – Learn More About the Move to Cut Rent by 25% In California

If you follow the Californian rental market, you know that there’s been plenty of activity this year on the rent control front thanks to the passage of AB 1482. This rent control measure became law in January, but that hasn’t stopped lawmakers from creating more rent control legislation including the Rental Affordability Act and AB 828.

Sadly, one would think that landlords in California have been through enough with everything that’s been done to impose rent control in this state. If AB 828 is approved, this would mean that the average landlord would be faced with dire economic consequences as any of their tenants could petition the courts to have their rents cut by 25% for one year.

What’s Happening with AB 828?

Right now, AB 828 is still moving forward through the Senate; it’s currently in the Rules Committee and this can mean that bill possibly gets postponed for several weeks while it’s debated.

Even though AB 828 continues to move forward, the California Apartment Association, and other groups that support landlords in California, have voiced their opposition of this bill and have been flooding lawmakers email and voicemail inboxes with messages opposing it.

There’s no denying that if this bill is approved it could bring a wide variety of catastrophic consequences for landlords in the state because landlords would have to absorb the economic losses and this would affect their businesses.

To voice your opposition to this bill, we encourage you to contact our lawmakers today and let them know that passing AB 828 would only further hurt the struggling rental market and make it more difficult for landlords and tenants alike.

Contact Golden west management

To learn more about the property management services that we can offer you, contact us today by clicking here.

AB 1482 Brings California One Step Closer To Rent Control

Proposition 10, the latest attempt at statewide rent control in California was defeated during the November 2018 election.

Sadly, the defeat of Prop 10 didn’t last for long since our elected officials immediately started 2019 with new measures to accomplish their goal of statewide rent control including AB 1482.

What Is AB 1482?

If it’s signed into law by Governor Gavin Newsom, AB 1482 will make it illegal for landlords and property owners in the State of California to raise rents here more than 7 percent plus the Consumer Price Index in one year.

The bill has been controversial from the start because opponents feel that it will stop investors and builders from wanting to build more housing in California while supporters of the bill feel that it gives landlords room enough to operate at a reasonable profit.

Will rent control help California? If history is any indicator of the results that come from rent control then the answer would be no.

California has a major housing shortage and ranks 49th out of all 50 States when it comes to per capita housing construction (2016 McKinsey Global Institute Report) so if AB 1482 is signed by the Governor this will only create another obstacle that will make it less desirable for builders to creating new housing in California.

Why Is Rent Control Bad for California?

There’s no denying that rents are high in California but having statewide rent control will only make maters worse because it’s going to be responsible for making the “Golden State” less desirable for real estate investors to build new housing here.

In 1999, just days before the world was going to end with Y2K, Forbes magazine published an article called “The Dumbest Ideas of the Century,” which included a list of the 10 worst economic ideas of the 20th century. Rent control was second on the list. “Here we have a policy initiative that has done huge damage to cities around the globe. It is very hard today to find an economist supporting rent control,” the article stated. Damage to cities, indeed, but damage to low- and middle-income renters most of all.

Source – Multifamily Executive

Contact GoldenWest Management

To learn more about AB 1482 and how it will affect California, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904