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.