There’s a lot you need to know about rent control when you own investment property in California. Today, we’re talking about some of the recent developments and what we think may be happening in the future.
Defeat of Proposition 10
We are very happy to report that Proposition 10 was defeated by the voters. These voters include both landlords and renters. People were able to easily see that the answer to our housing crisis is not rent control.
We believe in fair housing. At Stokley Properties, we think that everyone is entitled to have a nice, safe place to live. We also think that housing should be affordable, and rent should not be impossible to pay. But, rent control isn’t the answer. All you have to do is look at San Francisco. The city of San Francisco has had rent control in place for the last 30 years. It’s not working. How do we know it’s not working? You can look at the small supply of rentable homes that are currently available in the city. You can also look at the fact that San Francisco is notorious for its high rents. It has some of the highest housing prices in the world.
New Construction Leads to Better Housing
Instead of rent control, communities should consider building more properties. We have seen how this can work right here in Walnut Creek. Recently, new apartment buildings have been constructed with 1,200 to 1,500 units. This can happen because Walnut Creek is a stable, balanced market with a strong tenant pool. Those new, shiny properties are going to command a higher price. But, it means that older properties will be less expensive and more accessible to a large part of the population. It’s one way to answer the housing crisis without rent control.
Working with the Possibility of Rent Control
We need to remember that the issue of rent control won’t go away just because Proposition 10 was beat. Several cities in the East Bay and all across California have it on their list of things to debate. Several city councils and renter advocacy groups are discussing how to pass rent control, and it’s a subject that’s always finding its way into the news. The idea is not going away.
As professional property managers, we are handling the issue by working to prevent it. It’s not something we agree with. But, if the day comes that they chip away at the current market little by little and finally implement some measure of rent control, our responsibility will be to understand the laws and work within them. We’ll be here to support our owners, landlords, and investors.
If rent control does make its way to Contra Costa, you’ll need a professional property manager more than ever. Someone with experience in this area will need to help you navigate the rules, regulations, and legal landscape that surrounds rent control.
If you want to know more about rent control, including what might be on the horizon, please contact us at Stokley Properties. We’d be happy to talk to you about this.