L.A. stiffens rules for replacing rent-controlled units

[CaliRestoration]

That's what a lot of potential landlords say. "I'm making a 7 or 8 digit capital investment and the city/state says I have to eat it on 20% of my investment? **** those guys, I'm not doing it."

Then that person never opens a rental property, and the supply side gets constrained even more.

Rent control is an idiot policy pushed by idiot politicians.

[jm1982]

Originally Posted by CaliRestoration

That's what a lot of potential landlords say. "I'm making a 7 or 8 digit capital investment and the city/state says I have to eat it on 20% of my investment? **** those guys, I'm not doing it."

Then that person never opens a rental property, and the supply side gets constrained even more.

Rent control is an idiot policy pushed by idiot politicians.

Another thing is the big fees the city charges for the "privilege " of building in L.A

Yes people still want to build in L.A but that desire could go away if it stops being attractive to investors .
Building permits actually went down a bit in 2016 from 2015

There are also all sorts of other restrictions now where people have to hire certain people to work on construction projects that live within X miles of the site etc .

Lots of red tape

[PilgrimsProgress]

Los Angeles' rent control is vacancy decontrol, which means the rent for a tenant on month-month only goes up a tiny percent each year as long as they stay. As soon as they move out, the landlord can charge whatever the market will bear. So it's win-win for both tenant and landlord. I've been in my apartment a long time and my rent is about half of a new tenant's. I can't afford to move, but my landlord is elderly and a couple of apartment complexes on my street have been sold and demolished to make way for expensive condos. If he gets an offer, I will receive enough money from the city to, ideally, move out of state finally.