 town wants rent control (by Tony [NJ]) Oct 3, 2018 11:26 AM
 town wants rent control (by Richard [MI]) Oct 3, 2018 11:46 AM
town wants rent control (by S i d [MO]) Oct 3, 2018 12:14 PM
town wants rent control (by Landlord ofthe Flies [TX]) Oct 3, 2018 12:32 PM
town wants rent control (by Ann [MA]) Oct 3, 2018 1:13 PM
town wants rent control (by S i d [MO]) Oct 3, 2018 1:17 PM
town wants rent control (by Vee [OH]) Oct 3, 2018 1:28 PM
town wants rent control (by RathdrumGal [ID]) Oct 3, 2018 2:46 PM
town wants rent control (by Rick [IN]) Oct 3, 2018 3:45 PM
town wants rent control (by Landlord ofthe Flies [TX]) Oct 3, 2018 5:12 PM
town wants rent control (by Robert,OntarioCanada [ON]) Oct 3, 2018 8:22 PM
town wants rent control (by George [NJ]) Oct 7, 2018 5:19 AM
town wants rent control (by Tony [NJ]) Posted on: Oct 3, 2018 11:26 AM
Message:
I have some rentals in a town where the local politicians want to implement rent control. This town has declined noticeably over the years. Out of 20 towns in the county, this town has the lowest per capita income, lowest average rents and median property values, and the highest crime and unemployement rates. It's very difficult to fill vacancies with qualified tenants. Most rentals are not locally owned. Rumor has it they'd like to lean on these owners. Anyway the local officials want rent control.
I've arranged a meeting with a key council person. I basically "get it" and believe I can successfully debate this topic. Simply put, rent control should never be considered in a depressed market. Lack of demand by responsible working people has depressed the market, lowering rents and diminishing the attractiveness to live here.
Sorry for the rant but I'm seeking supportive stories/documention from this forum in hopes that this thread doesn't draw rhetoric.
Thanks in advance for your responses and I'll report back with the outcome. --73.195.xxx.xxx |
town wants rent control (by Richard [MI]) Posted on: Oct 3, 2018 11:46 AM
Message:
Is sell out every property there IMMEDIATELY and move the investment to another place.
With that many problems the effort to correct them would take more time, money and frustration than its worth.
I remember when Nancy from Detroit that used to post here some time ago said she walked away from about 40 places in Detroit because the area had gone down so much. --23.121.xx.xxx |
town wants rent control (by S i d [MO]) Posted on: Oct 3, 2018 12:14 PM
Message:
The most notable markets for rent control are in areas of California and New York. Do some research on how well that has worked over the past couple of decades and report on it to the town.
The short term effect of rent control is tenants are happy and vote to re-elect local officials who implemented the rent controls. Land lords feel betrayed because an investment that was once purchased with the understanding that the free market would determine their ROI has been artificially capped, and their probably values likewise are stunted and future investment in the areas is limited.
The long term effect of rent control is land lords still looking to make a profit must skim and cut on maintenance, so units tend to deteriorate over time, and as previously mentioned there is less incentive to build new or to revitalize existing housing stock.
Anecdotes are amusing, but the state of 3 million or so dilapidated housing units will probably be more convincing.
Now that's you've done your defense against a bad solution to the wrong problem, it's time to think offense.
Be prepared to present a REAL definition of and solution to the problem: declining local economy. How can the town attract new investors/businesses to inject capital into the area? Better jobs = higher pay making rents more affordable. Free market rents increases investor interest and construction / rehab $ to flow into the area.
If there's one thing everyone wants more of in this situation, it's money. You can all agree on that. Tell the town that's the problem: how to get more money into the area, not how to stretch already thin supply of dollars past the breaking point. --173.20.xxx.xxx |
town wants rent control (by Landlord ofthe Flies [TX]) Posted on: Oct 3, 2018 12:32 PM
Message:
You mentioned SO many reasons to sell and go elsewhere. Each one of them would be reason enough.
Forget fixing the problem. If the politicians had a choice between fixing the problem and throwing something harmful out there that would get votes quickly and the harm wouldn't happen for a few years, which do you think they'd do? Their problem isn't housing, it's votes, and they know how to fix it, and that's rent control. This is what happens when takers outnumber providers.
It's time to sell. Maybe you can sell properties in their district, and buy properties bordering their district starting where their jurisdiction ends. That way you can get the fleeing renters looking for a nicer rental. --108.69.xxx.xxx |
town wants rent control (by Ann [MA]) Posted on: Oct 3, 2018 1:13 PM
Message:
Yeah but who to sell them to? Would you buy a rental income property if there was going to be rent control? They have already tainted the market and cost you money of a potential higher sale price . --66.30.xx.xxx |
town wants rent control (by S i d [MO]) Posted on: Oct 3, 2018 1:17 PM
Message:
Some interesting resources... I cannot speak to any level of bias in these article.
bloomberg.com/view/articles/2018-01-18/yup-rent-control-does-more-harm-than-good
economist.com/the-economist-explains/2015/08/30/do-rent-controls-work
This last one is much more in depth and worth a read...
econjwatch.org/file_download/238/2009-01-jenkins-reach_concl.pdf --173.20.xxx.xxx |
town wants rent control (by Vee [OH]) Posted on: Oct 3, 2018 1:28 PM
Message:
I have been thinking about this for about 6-8 months and when it is my turn to speak at the meeting of citizens and city leaders my basis will be we will just help the homeless person run for office with a promise to work for less income than currently exists, this is a win-win for the whole community. --76.188.xxx.xx |
town wants rent control (by RathdrumGal [ID]) Posted on: Oct 3, 2018 2:46 PM
Message:
I keep an eye on the disturbing LL trends in Seattle and Portland markets. Seattle is well on its way to implementing city wide rent control. Spokane, near my market, tends to follow Seattle by 4-5 years.
For the past several years I have been telling fellow LLs that I would be hesitant to invest anywhere where renters are more than 50% of the population. Rent control is an easy sell to a renter majority by a politician seeking to buy votes. No one considers the long term ramifications. --98.146.xxx.xxx |
town wants rent control (by Rick [IN]) Posted on: Oct 3, 2018 3:45 PM
Message:
Any help from your state politicians? Sometimes you can circumvent local stupidity via the state. LL in Indiana did it. --75.104.x.xxx |
town wants rent control (by Landlord ofthe Flies [TX]) Posted on: Oct 3, 2018 5:12 PM
Message:
Sell to new homeowners. Maybe you can owner finance. No rent control laws there. Besides they haven't implemented rent control so there's still a little time left before the stigma hits. Some investors may jump on it and take a risk. Just price aggressively. --108.69.xxx.xxx |
town wants rent control (by Robert,OntarioCanada [ON]) Posted on: Oct 3, 2018 8:22 PM
Message:
Rent control is about a socialist ideal where they make it unprofitable for private sector rental housing providers to continue to own rental units. What is about is a government program of purchase where once the government takes over rent control comes to a end. So basically it is about expropriation of rental buildings. One time at the residential tenancy commission a tenant was getting a per cent rent increase where the tenant found out the government housing authority is not under rent control. In the province of Ontario what happened over time many of the smaller rental housing providers sold out to larger corporations where rents went up significantly. In rent controlled jurisdictions rents are a very high as there is no competition. Next to bombing a city over time by legislating slums rent control will do the same thing. Heck tell the unions that there should wage and price controls. In 1933 they brought in wage and price where striken ist verbotten. Striken concentration camp. When they brought rent control in the entire province of Ontario they had wage and price control where after three years they dropped wage and price controls but rent controls remained. We do not what is going to happen in the province of Ontario as there is a Conservative provincial government who is pro business where piece by piece they are slowly starting to reverse the Fiberal polices of the leftist. There is a very low vacancy rate in the province of Ontario as the builders are not building residential apartment complexes. Socialism has never worked in Canada or anywhere in the world so why is Socialism going to work in the Us. --147.194.xxx.xx |
town wants rent control (by George [NJ]) Posted on: Oct 7, 2018 5:19 AM
Message:
Tony you should practice your speech standing in front of and facing a wall, because the wall will be more sympathetic than the typical Jersey liberal socialist politicians you plan to talk to. I'd sell what ever you own in that city now if you can get out. --184.102.xxx.xxx |
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