While the mainstream media sensationalizes the presidential reality show, there are 2 important measures on the November ballot you should be paying attention to. Both will have a material impact to your property rights as an investor and potentially impairs the long term value of your investment.
Proposition 21: This is the latest attempt to eliminate any further rent control protections to real estate investors. According to Noonprop21 passage of this proposal would introduce extreme forms of rent control on ALL housing types, not just multi-family. If your property does fall under rent control, the current laws allow you to raise the rent to market rent, once a tenant vacates, however if Prop 21 passes you would be limited to the increase you could seek on a new tenancy! In addition to the hyperlinks above, I encourage you to listen to this podcast provided by CAA to learn more. Vote NO this November on these draconian measures!
AB 1436: According to the CAA, AB 1436 is a proposal to force landlords to defer unpaid rent until April 1, 2022, if a tenant is unable -- or UNWILLING -- to pay rent that was owed during the COVID-19 pandemic. CAA characterizes this bill as a government sanctioned rent strike. While I’m sure all of us empathize with those hit hard from the COVID shutdown, that needs to be a balanced against individual property rights, and the rule of law.
CAA is asking all landlords to contact their state senators to oppose this assembly bill. CAA has provided a form which you can send to your state senator very easily with the clear message that you oppose this bill.
I am a political atheist meaning I do not cast my vote based on party affiliation. I do my very best to vote on the issues before me based on its merits in improving society as a whole. I’m sure everyone can agree we should be creating laws to do that. The question is HOW.
In my opinion, it would be a step in the right direction to bring all parties affected by such a proposal together to build consensus and try to address each sides main concerns. Prop 21 and AB 1436 is too one sided and will create winners and losers. There’s a housing crisis to be sure, but creating more laws that restrict housing is not the answer. I would rather see more measures that incentive the creation of housing. More housing supply that meets the demands will put a lid on prices rising ever higher and give all residents the chance to get the housing they need.