Rent Control in the Valley

Filed under: Temecula Real Estate

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Rent control is something new for the Temecula Valley. It refers to government regulation of how much can be charged for a rental house. There have been some whispers out there that we are going to start seeing rent control come into play in our area. Something to the tune of: landlords will only be able to ratchet rents up at a rate of not more than 3% per year. This cap to annual rent increases could potentially cause some interesting side effects.

What Could Happen

If rent control does come into play, rental property landlords may feel it’s their obligation to raise the rent. Because otherwise, if they don’t choose to raise it for a given year, they can only raise the rent the following year by 3% above what they currently have in place.

For those who have had long term renters in a rental home and perhaps have not raised the rent on those renters for several years, they can only ratchet up the rent from the currently established rental amount by an additional 3% per year.

So, there are likely to be some interesting dynamics that happen as a result of rent control. We’re just going to have to wait and see how it affects the overall market. But for now, it’s definitely something good to be aware of for both landlords and those who are living in rental properties that will be subject to these new rent control laws. We’ll likely have new information on this topic in the next year or so.

With rental rates and housing costs soaring in California, something needs to be done to avoid displacement and gentrification. The question is whether rent control is the best solution for California.

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