L.A. County wants to cap rent hikes at 3%. Landlords say that would push them to sell

Oh my God oh my God if the landlords have to sell, that would be... Check notes... That would be really good for people who want to buy houses.

Good. Bye bitch.

They'd flood the market with properties shifting us along the supply curve to allow younger people to afford properties?

Darn, that'd be so... awful? No, I was looking for awesome.

Don’t threaten me with a good time.

Is there a downside further in the article or is it just all positive news?

good, get a real job

Good?

3% was the top annual pay increase at the Fortune 500 company I used to work at. 3% max increase for those that "exceeded all expectations". Probably less than 1/3 of employees.

So if it's good enough for a Fortune 500 company, it's good enough for every landlord. 3% max, and only to max 1/3 of their locations/rooms.

Introduce additional legislation that limit property sales to corporations and I’ll donate to yer campaign

Good. Fuck landlords. There should be a law they can only own multi family units.

Good riddance

SELL UP MOTHERFUCKERS

I fail to see the downside.

This would driving down the cost of housing because of an increase in inventory. Sell them to whom? Other landlords? Or would it be workers?

I think I just found my latest political campaign

That's-the-point.gif

The push to change the county’s rent stabilization rules yet again was met with skepticism by Supervisors Janice Hahn and Kathryn Barger, who voted against the proposal. They said they were worried that the government was overburdening smaller property owners who rely on the rent to pay their bills.

LOOOOL

Cheaper homes in L.A.? We can't have that!

Landlords say this would push them to sell.

Yay? Maybe then it could be sold to people who are desperate to get off of the rental merry-go-round.

As in, these homes will be owned by people who actually live in them; non-parasites who aren’t going to be sucking the lifeblood out of hard-working, working-class Americans.

And maybe instead of being landlords, these parasites could actually go out and get a job?

Landlords will complain every time any government, local, regional or national, attempts to regulate their bullshit, and plenty of people will rush in to take their side because they see themselves as temporarily embarrassed ghouls. Tax them to hell and back.

Sounds like that’s by design. If they all wanna sell prices come down on that front as well. Sounds like it should be capped at 2 percent to me.

Maybe everything should be capped at 3% since that's the standard BS bonus we all get each year.

Why would that push them to sell?

Edit: so the interest rates have risen several percent along with the cost or labor and materials eating into the profits of serial buyers who leverage loans to buy more on previously purchased properties. If they don’t jack up the rent, they can’t manage the debt.

That said, fuck those guys, hope they go bankrupt. This isn’t someone who has an extra property they invested in years ago, these are the clowns buying everything up and squeezing the market.

Won't someone think of the landlords?!?

Oh nooooo ...

Landlords say that would push them to see

Good. Do it. DO IT.

Oh no?

k

The poor little landlords! They have to find something else to do with their lives besides sitting on their rear ends most of the month and laughing all the way to the bank once a month.

I get the concern that small landlords will sell to big corpos who can handle the thinner margin, but for those smaller landlords that have paid off their property, or bought 10+ years ago, the margins are already super high, so the 3% cap isn’t going to cause them to sell when they have a $1200 mortgage and are collecting $2800 in rent, or no mortgage at all in many cases so pure profit more or less

I think I feel the world’s tiniest tear forming!..no, I just had to fart.

So, win-win. Got it.

So it's a win-win then?

"what do you mean a vampire shouldn't suck so much blood? might as well put a stake through my unbeating heart!"

"Landlords say that would push them to sell."

So, you're saying it would increase available housing supply? Sounds great.

Oh, and for the record, they will not, in fact, sell. Most housing in Ontario is still under a 2% annual rent increase limit. Landlords are doing just fine (and by "Just fine" I of course mean "We have a national housing crisis because landlords are hoarding all the available supply")

sounds like a win-win

Oh no.... they'd have to sell >.>

Sell to whom, though?

I need the class of landlords removed from society.

"Push them to sell" ... "to larger corporations that have bigger financial reserves and plans to keep swaths of housing off the market in a monopolistic practice to keep supply low and rent always growing at 3%"

Please do this, we need more houses on the market

Oh yes I think selling a great idea!

Good. Then do it!

Oh know! Won’t someone think of the landlords! They might sell their excess homes to people who might want to actually own the place they live! It’s clear those people wouldn’t be responsible enough to handle that or they would already be homeowners! Landlording properties to renters is protecting them!

Just as long as they also cap property tax and insurance increases at 3%, I'd be fine with that. I had both more than double in price in 3 years.

If someone buys a home that was rented. Would the cap apply to them? Because this might result in a loophole

Good.

I think there is quite an easy solution to the housing issue we're facing: exponential tax increase per property.

There is no reason for someone to own more than one property in a city. No reason at all. But even if you could find one - let's say the first 2-3 properties (defined as houses/apartments of less than X area each) have regular taxes. But then? Then it gets retarded. 500k more per year for the fourth one. 4 mil extra a year for the fifth. 50 mil extra for the sixth. One billion for the seventh. You're a property developer? You have until 2 years after the property was finisbed to make sure someone has bought every little bit of it, otherwise that 40 apartment building will end up costing you twice the foreign debt.

Can't pay the taxes? You can always sell the place, at a fair market value. Let's say your two uncles died in a short timespan and they both left you their houses, but you had some property already and now you're up to 5 residential properties but you're not prepared to pay the extra few million. You can always list their houses. Every month they are listed and don't get bought, you reduce the price by 5%. Overvaluing the property gets it confiscated - you surrender your property to the state, which then distributes it to those in need in a lottery. You can also opt to just give away some of your less desirable properties directly instead of trying to sell them.

But no, that'd be sudden death for all the retards who keep building, all the fuck heads who keep buying and holding, and all the politicians whose pockets get padded for listening to whichever lobby.

↑ supply or ↓ demand. As much as it frustrates politicians, these are the only true levers.

Of course, economists have successfully predicted 5 out of the last 3 recessions so who knows. Why don't you go ask Chat GPT.

Pushpush

This is a buff

Reminds me of: https://youtu.be/fS9PvVCyazY

This is first order thinking. What this would cause is much much less building of units that people would rent, so the total supply would slow way down and housing would get worse.

A 3% cap is absurdly low. While people are saying "don't threaten me with a good time," this also means there are going to be fewer new units. Although considering how few units many CA cities have been adding (some have even removed units), it might not have too much of an effect on that regard. I would could see maintenance on existing units dropping and many more unofficial units popping up.

Permanently Deleted

I'm old enough to remember when the government has tried to cap the cost of one thing while ignoring other factors. It never ends the way the government thinks it will.

Rent control is literally the textbook case of making a bad situation worse via unintended consequences.