Statewide Rent Control Passed in California

California has some of the most regulated rent control laws in the United States. Furthermore, since the AB-1482 was passed, rent control has become a more challenging issue for landlords in San Francisco and other prominent areas in the state.

This new law has had a significant impact on the landlord/tenant relationship, making it harder in some cases to protect the landlord’s rights and property. The new rent control law puts over 2.4 million units under government regulation. It can also harm the development of affordable housing.

What Does Statewide Rent Control Mean for Californians?

Almost 40 million Californians are tenants or renters, and rent has increased exponentially over the last 20 years. That has led to California becoming one of the most expensive states to live in the U.S. because of price hikes due to constant demand, the state government has decided to implement rent control.

In summary, rent control in California works in favor of tenants. It limits annual rent increases to only 10% as of April, 2022 in Orange County alone. This makes it more difficult for landlords to generate income even when taxes keep rising in the state. This law also affects eviction procedures, making evicting tenants a lot more complicated than it used to be.

Everything You Need to Know About AB 1482

The AB-1482 is a law passed in California to increase rent control in the state. It aims to combat rising rent and price hikes. There are arguments in favor and against this law. Furthermore, it can have implications for your rental property.

Which Properties Does It Affect?

Under the AB-1482 law, rental properties over 15 years old will have a limited annual rent increase. According to the state government, this exception will encourage developers to build new rental properties, as new properties will not be regulated by the AB-1482 law.

These are the properties that the AB-1482 will regulate:

• Multi-family properties: All multi-family rental units over 15 years old will fall under the new regulations.
• Single-family homes and condos: Single-family rental properties will only fall under the new law if real estate investment trusts own them. If a single person or family owns the home, it will not be regulated.
• Duplexes: Duplexes will fall under the new AB 1842 rent control law if they are not owner-occupied. To be exempted from rent control, one of the units needs to be occupied by the property owner.

Municipal Counties

The new AB-1482 law only applies in cities in the state of California that are not already covered by previous local rent control laws. Even then, the AB-1482 will only apply to rental properties that are not covered by stricter policies.

Property Taxes and Inflation

Rental prices go up because of the demand for properties in California. However, they also increase because of the rate of inflation. The higher the cost of living in California, the higher rent will be.

This new law may jeopardize additional income for landlords. That’s why property owners will have a tax reduction if they are affected by the new law. However, in most cases, the tax reduction will not cover the loss of the annual rent increase produced by inflation.

The Argument Against Rent Control Laws

The most vocal critics of rent control and the new AB 1482 believe that using government regulation to reduce rental prices will worsen the problem. If there is less incentive to have a rental property, there will be less investment in the development of new rental properties.

Critics also argue that California’s zoning laws create the problem because they prevent affordable housing development in major metropolitan areas. However, rent control advocates say that the law will benefit people living in below-market rental properties.

Stop Worrying About Managing Your Property and Choose Genuine Property Management

Are you tired of worrying about property taxes, rent control laws, and tenant evictions? If so, at Genuine Property Management, we can lighten your load. We can take care of every aspect of managing your property while you enjoy the rewards of some extra income.

Here’s what we offer for your property:

• No long-term contracts; you can leave whenever you please.
• A 24-hour maintenance center for your property.
• A money-back guarantee if you are not happy with our services.
• Renter’s insurance coverage to protect you and your property.
• Tenant screening reports and more.

If you want to know more about property management services in California, you can look through our website or contact us at 949-209-9494!