How does rent control help you? Santa Clara can limit rent increase to 1.2% per year, will it help you or hurt you?
In rent controlled SF, tenant occupied multi family is crazily cheap. If you prefer rent control, I can help you buy many cheap multi family buildings in SF. Low rent, long term tenants, zero vacancy, old and tired condition.
First of it will never be limited to 1.2% unless they agree to keep prop tax in line and below 1.2% as even prop 10 enshrines fair and reasonable return. It will fail this test if costs go up faster then rents
Second the assumption is on long term 10-20 years and vacancy decontrol is not in place. The effect of rent control is to constrain supply and raise rents. So you are depending on tenant turnover to take advantage of rent increases
Hence why i said good area. If you are renting out in good areas you are going to turnover every 2 years or so, that way you can capture increased rent
Tech workers are mobile. They change jobs or start a family and buy houses and leave. We like to set up our properties to appeal to younger people / families / techies as they won’t stay too long (2-3 years)
I target similar profile in Austin, 3 end up not the correct profile. Very surprised given that I bought in good school neighborhoods. Btw, strictly speaking I don’t have rental in Cupertino since I didn’t buy with renting out in mind.
Wifey and I had long discussions on school districts. We realized good school districts attract people with kids. They tend to stay a long time. We decided it was better to buy in medium school districts (not bad, not good) that is near good transportation links with a decent walk score. That would attract people who need to get around (for work) and like to go out (younger people). It also meant they won’t stay too long (schools are not great) when they want to start a family. We avoided bad school districts as the neighborhoods might be bad.
Dude: don’t be a troll. I just outlined why prop 10 may benefit people like me but i am still voting against it. I may just vote for it because you are being a troll and encourage people to vote for 10 as well
Let’s not create FUD. Prop 10 does away with inability to vacancy decontrol but does not mandate vacancy decontrol. The local area still needs to pass vacancy decontrol. Vacancy decontrol is likely a bridge too far for many cities / counties.
Berkeley had vacancy control. Costa Hawkins banned vacancy control in 1996, but it’s still in Berkeley rent ordinance. If Prop 10 passes, Berkeley will have vacancy control immediately.