Good article on housing
More evil has been done in the name of Marxism than any other cult in the history of the world.
Of course nobody can build cheap housing. All the codes zoning and perks for lobbyists like fire sprinklers are designed to make housing unaffordable.
There is no lobby trying to make housing cheap.
My old 1960s Sacramento apartments are worth $80k each. Sacramento codes and land prices would make replacements cost $300k each, in SF $500k each.
Yet in each city market prices are even higher.
Rent control will just mean less $80k units available.
Rents will actually go up.
My $80k units rent for $1050. Those $300k units will rent for $2500/m
The answer to rent control is to sign leases like triple nets. Make tenants pay for maintenance, repairs, taxes and all utilities. Even water garbage sewer.
I have some confusion about vacancy control. If owner A has a tenant T who moved in 1978 and has a low rent of $800 vs a market rent of $4500. Then Prop 10 passes. A died before the tenant and his house is sold to owner B. So tenant T becomes the tenant of owner B. Later tenant T die and he has no children and the house became vacant.
Owner B now has a vacant house which was rented for $850 before tenant T is dead. If owner B wants to rent it again, is he required to rent at $850 to the new tenant? T was an inherited tenant for B and this would be the first time leasing for owner B after he became the owner.
If the answer is yes, then B would never buy the house unless he intends to be an owner occupier.
Dang, do you sit around all day to come up with these possible scenarios?
Frankly, considering sooooo many layers, if it were me (the most current owner of property) I would go ahead and rent it at market rent or whatever I feel is appropriate for my needs until someone tells me otherwise. Come on, home is vacant. Hey, I can use the excuse that I didn’t know about the tenant terms in the past and I was not provided with details (which may be true).
Got an email from the No-Prop10 folks to send campaign emails to your address book contacts. People here can do the same:
“Research on the effects of rent control is decidedly mixed.”
Uh, Jeremy, what are you talking about? Sources? I see you conveniently left out the part that most economists world-wide believe rent control is bad. I wonder why you left that out???
He forgot to mention vacancy control. Does he even understand vacancy control? Or heard of it?
The housing shortage was caused by the government, blamed on landlords and only can be solved by developers who are universally hated for “destroying the environment.”
Fifty years of butterflies first and nimby politics have created a shortage of over million housing units in CA alone. National problem that can only be solved by a massive building campaign.
The Democrats are behind this proposal. However many are against it including Newsom, Cox and even the NAACP
Posted by Dave 3 days ago
This is one of the reasons many residential projects are not going forward at this time in SF. This change to the rent control laws if enacted would bring residential construction to a halt in SF. Many projects don’t pencil now and some are on the borderline of go/no go. Rent control on new construction and vacancy control will make new projects in SF financially unfeasible. Keep in mind that while this proposition would allow localities to impose strict rent control on all housing it does not mandate such. Some localities won’t go there. SF will – in the unlikely event the Supervisors don’t go for the full enchilada, renter groups will put initiatives on SF’s ballot to impose all the controls that the initiative permits. This will, if passed, only worsen the housing crisis.
What becomes of major apartment projects planned for the coming decade. Park Merced for instance. The plan is to add thousands of rental units – will that plan still be viable should this come to pass? Or HP/CP and projects with a planned mix of apartments and for sale units. Will the developer come back and ask to re-do the project without rentals ad make it all condos? Would the city allow such a change? I told a friend who benefits from a rent controlled unit she has been in for a decade and makes almost 200K that developers would only build condos and not apartments in the city if 10 passes. Her response – that future residential development be required to include apartments as well as condos. This is SF and it is not too far-fetched to see the possibility of such a scheme coming about.
Posted by anonymous hippopotamus 1 hour ago
Does anyone know what the vacancy control rules might look like for small rental apartment buildings? Specifically wondering: 1. Is the rental rate expected to be held at the previous rate or some city-dictated ‘fair market rate’? I ask because I have tenants paying $500 for a $2,500 unit and I do not want to re-rent it for $500 if they vacate. 2. how long would the previous rental rate need to stay in place after the previous tenant vacates? 3-years? 5-years? Indefinitely? If the answer to #1 is that it stays at the previous rate, I would like to know how long I need to keep the unit vacant until I can revert to market rates.
Posted by parklife 1 hour ago
There’s no crystal ball with respect to what SF will do with respect to vacancy control should Prop 10 pass. For example, Santa Monica which had vacancy control prior to Costa Hawkins is concerned that rents will be reduced to 1978 rates for certain tenancies. Fortunately, SF did not have prior vacancy control so anything that might be proposed is only conjecture. However, given the pandering to tenants rights groups that takes place with regularity in our fair city, I would guess we will see some sort of vacancy control in the event that Prop 10 passes.
I hope any and all development shuts down completely in the Fab 7x7. We need to teach our idiot leaders a lesson.
Condos will continue to be built, just no new rentals. Current rentals will be converted to owner use over time.
I have friends visiting from Germany. World travelers. Seen proverty worldwide. Were absolutely appalled by downtown SF. The worst conditions in the world.
Prop 10 will make it worse.
If Prop 10 passes, some cities would immediately have vacancy control, meaning that rent will never go back to market rent even when tenant moves or dies.
What’s the best strategy for landlord in such cities?
Single family or condo is easy, just sell.
What’s the best option for the landlord of duplex, triplex and 4 unit?
I think 5+ unit is doomed and no strategy can save them. The owner would just do minimum repairs and no renovation and wait for the building to end of life, then sell land to condo developers.
Maybe Uncle Elon can come by in the middle of the night…