What Is Proposition 21? Learn More About California’s Latest Efforts To Expand Rent Control

Love it or hate it, rent control continues to be a ‘hot button’ issue in California, Lawmakers continue to push for full rent control across the state while most landlords oppose it.

California recently moved one step closer to full rent control, bypassing the 2019 Tenant Protection Act, a bill that limits rent control to 5 percent plus inflation for 10 years.

Most lawmakers felt that the bill doesn’t do enough to protect tenants. This is why they keep pushing for full rent control across the state.

A “yes” vote on Proposition 21 would allow local governments to enact rent control on housing that was first occupied over 15 years ago, with an exception for landlords who own no more than two homes with distinct titles or subdivided interests.

Will Voters Support Proposition 21?

The big question with Proposition 21 is: will voters support it? Especially since they overwhelmingly opposed Proposition 10, the last effort to enact full rent control across California, just two years ago?

As with 2018’s Prop 10, the biggest objection to Proposition 21 is that it will slow down the construction of new rental housing in California. Supporters of the measure feel now is the right time for full rent control across the state due to rising housing costs.

Voting no on Proposition 21 would continue to keep Costa Hawkins alive, continuing to prohibit rent control on housing that was first occupied after February 1, 1995, and housing units with distinct titles, such as single-family homes.

Why Does Proposition 21 Matter to Property Owners?

The main problem the State of California and other states face with their rental markets is a supply and demand issue.

More housing needs to be built across California to keep up with the demand. With single-family residential starts down 10% and multifamily construction down 6% from 2019, it’s likely that California will continue having a very competitive rental market for the coming years.

Proposition 21 affects homeowners just as much as tenants. Homeowners who rely on the income from their rental property can suffer financial strain without the ability to raise the rent by demand.

Contact GoldenWest Management

At GoldenWest Management, we stay on top of the latest information affecting the rental markets in California, Arizona, and Las Vegas specifically because we manage properties in each of these states.

Our company takes pride in providing our owner clients with boutique-style property management. This means that we treat every client like they are our only client and provide them with the personalized service that they deserve.

To learn more about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

What Is Prop 10? Learn More About Rent Control in California

Are you a renter in California or a landlord? If so, regardless of your political preference, you definitely will want to vote next week because, every voter in the state has the ability to vote on either approving or stopping proposition 10 from becoming law.

What is Proposition 10?

Proposition 10 will give cities like San Diego and Los Angeles the ability to expand rent control. This will be done by repealing Costa Hawkins, the 1990s Housing Act that has been in California for over 20 years.

Thanks to Costa Hawkins, landlords in San Diego have the right to raise the rent on their units to the fair market value when an old tenant moves out. This could change though with proposition 10 which could make a landlord’s ability to raise the rent after tenant moves out a thing of the past.

Cities like San Diego could implement restrictions on all of the local housing stock including single family homes, condos, town homes and new apartments.

How Will Rent Control Affect California?

The obvious argument for rent control is that it will protect renters from excessive rent hikes and keep their homes affordable.

Although rent control sounds ideal for California, and many people feel that it will be a cure-all for the housing crisis, implementing rent control will not encourage the construction of more housing in the Golden State when this is what California desperately needs.

Many industry analysts and economist who have been following the developments of proposition 10 over the last year have seen landlords sell their rental properties in California in favor of getting out of the state before rent control becomes law. Other landlords have sold their portfolios of single-family homes to individual owners, effectively taking those rentals off the market.

Regardless if you stand for or against rent control in California, don’t forget to vote! Make sure your voice is heard in November by casting your vote when it comes to this crucial issue.

Get Property Management in San Diego

For property management in the San Diego area contact Golden West Management today by calling us at (866) 545-5303 or click here to connect with us online.

 

 

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