Rent control would be phased out! (Los Angeles, San Fernando: apartments, foreclosure, renter)

[SandyCo]

Please read the following article in the L.A. Times:

Ballot measure would phase out rent control laws - Los Angeles Times

If this passes, rent control will gradually disappear altogether.

[General Patton]

Unfortunately, rent control is needed as a necessary evil to control greedy property owners. The same could be said for greedy corporations that outsource to other countries instead of paying Americans a fair wage.
In both cases, I hope their greed causes them to go broke!

[Ultrarunner]

The problem I see with Rent Control is that you've got some people that basically have a Life Estate in someone else's property... it just seems unAmerican.

When I was presented with a Rent Increase that was more than I was willing to pay... I moved and wished the Owner Good Luck!

In a "Free" market, the owner can only get what the market will bear... if the unit is overpriced, it will languish... just like homes that are overpriced are languishing today.

[EscapeCalifornia]

You can keep your rent control if I get car lease control. I'd love to lease a Lexus for $100/mo.

[motoman]

In the short-term, the abolishment of rent control will hurt a lot of people. Think of those paying significantly less than market. But in the long-term it will benefit everyone. More apartments will become available and prices will fall, on average.

What will likely happen is that a lot of people will decide to leave the area in the short-term. I don't know many people, particularly on lower incomes, that can afford to have their rent double. The only choice will be to get more roommates or leave the area all together.

Again, it will hurt short-term, but it will help long-term. Rent control does not work.

I can say that I would be leaving my building if rent control is lifted. When I moved there in April 2005 I was paying $1,395 for a 2/1. They are currently asking $1,850 for a similar unit in the complex. All else equal, to afford that increase I would have had to get a $16,000 raise. How many people making a normal income have gotten a $16,000 raise in just a couple of years? Very few. Were it not for rent control, I would have moved already, and most of the people in my complex would have as well.

[Ultrarunner]

I may have missed something... isn't this about the phase-out of rent control?

The phase-out, if passed, would be gradual and existing rent controlled tenants will still be afforded a degree of protection.

Here is what I read:

The measure says rent control laws enacted before Jan. 1, 2007, would remain in effect for tenants who were living in the controlled units as their principal residence. When the tenant leaves, rent control would be removed from that unit

I'm sure much more will be written as election time nears.

[motoman]

No, you didn't miss anything. But the trend is towards the total abolishment of rent control. It won't happen overnight, but it will happen.

What that means is that rents overall will increase in the short-term as more and more units come off of rent control. But then at some point enough units will be pricing at market that rents will actually decline on average. Remember, on average. A wide range of prices will make up that average.

Were it the case that ALL units were not under rent control, prices on average would come down for most renters because the demand for housing would decline as those currently paying under market would either be totally priced out of the market or decide that they simply don't want to spend that on rent. Call it voluntary renter foreclosure.

[Hungry For Cheese]

My slumlord neighbor owns the home next door, but lives in some European country in the east. He comes to occasionally fix the place only when he is trying to rent it out. He raised rent for a great American family, whom I liked very much, from 1800/mo to 2400/mo, forcing them to move out. This is for a home in San Fernando Valley built in the 1950s and is approx worth 650k on a good day.

He hasn't found a tenant in over six months...losing at least 10k in cashflow.

I love it...bring it on. Rent control doesn't work.

[JackSparrow]

As an owner, I am for the removal of rent control.

I could see it from the other side of the issue though.

All I want is money for someone else to cover what I'm paying in mortgage. THAT'S the American way... hahaha

[motoman]

Originally Posted by Hungry For Cheese

My slumlord neighbor owns the home next door, but lives in some European country in the east. He comes to occasionally fix the place only when he is trying to rent it out. He raised rent for a great American family, whom I liked very much, from 1800/mo to 2400/mo, forcing them to move out. This is for a home in San Fernando Valley built in the 1950s and is approx worth 650k on a good day.

He hasn't found a tenant in over six months...losing at least 10k in cashflow.

I love it...bring it on. Rent control doesn't work.

Yeah, that's pretty ignorant from a business perspective.

In 6 months he has lost $10,800 at the $1,800 per month rent rate. Then he spent money fixing it up, which he might not have had to do had the other family stayed. Even assuming he eventually gets the $2,400 per month, it would take him a minimum of 18 months just to break even.