California Apartment Association Has an Overview
Well it’s sad to say, but we’ve entered the area of State Wide Rent Control with the recent passage of AB1482 that was signed into law a couple of days ago by the Governor.
While this law could have been worse, it’s still takes away many protections for Landlords/Investors because they will not be able to easily raise rents to market rates or evict tenants that might pay the rent, but are disruptive to an apartment complex or not following the rules regarding care of their unit.
The real problem is the lack of affordable housing that is caused by the ever increasing regulations and barriers put up by governments, state and local.
I guess one good thing is there is no “enforcement mechanism” in place with this new State law, such as a “rent control board” that was created by the City of Sacramento. By the way, that Rent Control Board will be funded by Landlords with another Annual Assessment. So if a tenant has a dispute with you and at the same time owes rent to a Landlord, that tenant can easily get a Rent Control committee to hold a hearing delaying any kind of enforcement.
The rules, procedures and assessment amounts from the City of Sacramento Rent Control Board haven’t been published as far as I know. So stay tuned and if you’re thinking of buying an investment property there or anywhere else in the State of California, you’ve got to be aware of the new law’s impacts.
You can still make money with investment real estate, but you’ll have to learn the new rules.
Managing a rental will probably be made a little more time consuming so why not hire a Property Manager. A good one will help make you money and keep you out of trouble.
Check us out at Haven Properties, 916.990.0770 or call me anytime at 916.203.1260 if you have questions regarding Rent Control, the Rental Market or Residential Investment Sales.
In the Mean Time…?
Make it a Great Day…!
Ed Favinger, Broker, CRS, GRI, SFR 916.203.1260