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So I know there are many of you out there that own rental units, have owned rental units, or currently rent a unit. A bill to establish a rent control pilot program has been started. What are your thoughts on this from your individual perspective.
The link below is a report on the measure and within that is a link where you can read the entire measure.
In a nutshell, it establishes that rent charged for a unit within specific areas cannot exceed 30% of median income in the district. And it would only be applied to units built prior to 1990 or after the bill goes into effect. it would also restrict increases.
I wonder: how does it impact your existing rental agreement if you are currently charging more than 30% of the median ? The measure doesn't address this. How is this equitable to landlords who pay differing hoa fees because one, for example, includes electricity and cable and internet while another persons building does not include those items? The law doesn't address this. How can you apply a rent increase if the median income doesn't increase ... but all your costs do ?
Would you keep your unit if you could no longer cover the majority of your expenses because you must charge a lower rent ?
It also make provision to allow the tenant to be awarded legal fees if the take the landlord to court over rent control issues.
There is also a provision providing for tenants moving expenses to be paid. But I could tell whether the government would pay or the landlord.
Do you think it has a chance to pass ? How might it impact state GET revenues if rents drop and if then property values decline ? Will it have the impact of encouraging people to move to the island because rents in those areas are pushed down and create a bigger housing shortage ? And how can it be equitable if one owner in a 1989 building is all of a sudden hit with rent control while the owner across the street in the 1990 building is not ?
So many questions I know. Just really want to hear some other perspectives... from both landlords and renters.
As written the bills intended effective date would be in 2018. The first 5 areas have not been established but the representative sponsoring the bill mentioned 3 areas on his mind are Kona, Kihei and Kakaako.
Oh, so the bill is only addressing rentals in certain areas and not everywhere?
The bill is to establish an initial pilot program in 5 areas. Then study the effects of the controls over a period of time before deciding whether to make it statewide or not. So the bill is to establish a first step pilot program.
Why stop at rent? What not cap medical and food expenses? Maybe even cap politician salaries!
Maybe these legislators should spend their time improving our schools and business environments. Obviously these rents are affordable by someone. Not everyone can or should be able to afford to live in a tropical paradise.
The bill is to establish an initial pilot program in 5 areas. Then study the effects of the controls over a period of time before deciding whether to make it statewide or not. So the bill is to establish a first step pilot program.
artificial rent control in general is a bad idea. it has not shown to be effective in other states, and will throw the rental market out of whack. if the govt really wants to get in the market of "helping" people out, then they should streamline the section 8 housing voucher process and eligibility.
Who makes out better? A renter makes $100,000 in a $200,000 median wage district. Another renter makes $300,000 in the same district.
Renter A has to pay rent of $5,000 ($200,000 X 30% =$60,000/12= $5,000 a month).
Renter B has to pay the SAME rent of $5,000 even though he makes THREE times more money than Renter A.
See, that is how the rich get richer by "helping" the poor!
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