Rent Control Advocates
If you do any amount or reading or watch any news, advocates are everywhere and for every cause. Some good, some not so good. Rent control is no different. There are advocate groups pushing for rent control. A recent defeat in CA had set the rent control push, a few steps back. California Prop 10 would have allowed new tougher rent laws.
Rents have continued to rise faster than incomes in many cities across the US.
Most states (approx. 45) prevent local governments from enacting laws that place any type of rent controls. But what is now, doesn’t mean it will remain the same. Just a short time back, most states had laws against illegal immigrants. Today is a different story.
Investors who own apartments or other multi-family properties would be most impacted if any rent control laws were to be passed. Experts in the mulit-family sector worry that laws could freeze rents on existing properties. That would have profound affects on the industry including new development.
Little By Little
Just like the proverbial frog in the water story, rent control advocates don’t expect change to happened overnight. That’s why multi-family advocates are concerned with even the slightest regulations. Regulations that would place limits on the amount of increase is viewed as a step towards all out rent controls.
Whether multi-family is in your portfolio now or not, keep an eye on legislation. Many groups aggressively are pushing for rent control in states like Colorado, Oregon, California and Illinois.
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