Several affordable-housing activists have filed proposed ballot initiatives in California to create new rent control laws that would affect several cities that do not currently have rent control. The four cities in LA County that activists are targeting are Inglewood, Long Beach, Glendale, and Pasadena according to the LA Weekly magazine. Due to the skyrocketing rents in Southern California many tenants are getting priced out and are turning to groups like the Pasadena Tenants Union or Housing Long Beach for relief. These groups are organizing to get these initiatives on the ballot in November 2018.
Inglewood is a very popular market to invest in due to the lack of rent control and relatively lower prices than the Westside. But now with the Los Angeles Rams and the Chargers and their new stadium being built both home prices and rents have been rapidly rising. This pressure on tenants has caused groups such as Uplifting Inglewood to fight for tenant’s rights and to try to impose rent control in Inglewood.
What should you do if you own rental units in a non-rent controlled city that is threatening to impose rental restrictions on landlords? Well be sure to closely follow the situation. A good resource is The Apartment Association of Greater Los Angeles (https://aagla.org) or Apartment Owner’s Association of California (https://www.aoausa.com/).
Another thing you want to do is to make sure you know what the current market rents are for your area. If you are significantly below market rents you need to consider adjusting them at or close to market. What you don’t want to have happen if rent control comes to your city is to have real low rents because then you will be stuck with them and it may negatively impact the value of your building when you go to sell.
If you have questions or need some advice, feel free to contact me. I’m here to help!