Topic: Three questions regarding rent control

Three questions regarding rent control.

1. Will you continue to offer month to month at a premium rate?
2. How will you tackle rolling rent back to March 2019 pricing.
3. Will you offer shorter lease terms to capture the two allowed increases per year.

The challenge will be getting people to renew if there is no MTM fee. This is what is going on in Canada right now. People just don't renew and go MTM. Very interested to see how the market handles this piece. Please keep us updated.

MTM: 8.3% for OC
Roll back: not sure yet, but I imagine we will do a full audit. The roll back is only if the increase they received during the year exceeded the 8.3%. So if a 10.3% increase was given, we’d roll back 2%. At least that’s my understanding at this point.
Lease term: I’d offer a 12 month to bring closer to market, and would leave a slight difference between the term lease and MTM.
My guess is MTM will skyrocket, and then some landlords will elect to take the unit back since either party can serve notice for a MTM. I’m sure there will be controls in place.

www.bls.gov/regions/west/california.htm
If you click the Santa Ana/Anaheim/Irvine, you can see April CPI at the bottom is 3.3%. There are other regions (LA/IE) listed as well. ????

I’m in Santa Clara County and we have rent controls in place, what I do know is if you end a lease and a new tenant moves in, you can increase the rates above the rent controlled limit. In some areas you can do other increases if you made repairs or if you have additional residents move into your unit. Check with your respective agency as they can be helpful in providing this information.

I’m curious to see how this will play out.