Following the historic defeat of Proposition 10 in the November 2018 election, legislators have continued on the path to Statewide rent control and with their latest effort, AB 1482, their goal is getting closer to reality.
What Is AB 1482?
If it’s signed into law by Governor Gavin Newsom, AB 1482 will make it illegal for landlords and property owners in the State of California to raise rents here more than 7 percent plus the Consumer Price Index in one year.
The bill has been controversial from the start because opponents feel that it will stop investors and builders from wanting to build more housing in California while supporters of the bill feel that it gives landlords room enough to operate at a reasonable profit.
Will rent control help California? If history is any indicator of the results that come from rent control then the answer would be no.
California has a major housing shortage and ranks 49th out of all 50 States when it comes to per capita housing construction (2016 McKinsey Global Institute Report) so if AB 1482 is signed by the Governor this will only create another obstacle that will make it less desirable for builders to creating new housing in California.
Contact 36 North Property Management
To learn more about AB 1482, or to speak with us about our property management services, contact us today by calling (831) 484-4604 or click here to connect with us online.