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Politics & Political Policies are destroying the economics and incentives of multi family investments.
Los Angeles County supervisors’ rent caps could wreck housing. ⬇️ There are pros and cons, but the article concludes by emphasizing the need for a balanced approach that addresses the affordability crisis without stifling housing development and investment. It calls for policymakers to consider the long-term implications of rent caps on the housing market and the broader economy. What do you think? Read Opinion Article:https://lnkd.in/gP2U4Pfs #AAGLA #LACounty
Michael Polk
3mo
My $.02: Michael Polk
Senior Vice President at Chicago Title Insurance Company
2moI think rent control is fine and should have a 5 year life span and then expire. It should not be a life sentence for a property owner or their families when they inherit it or decide to sell the property. Think about a family that inherits a property that is under rent control where dad paid $800,000 and was paying $12,000 a year in property taxes and tenants have been there for years so income is low. The value of the property is now $3M and because of Prop 19 the taxes will shoot up to $40,000 per year but yet you can’t raise the rents. Is that considered to be fair? Maybe a family member wants to move in and now the family has to pay relocation fee’s because dad was a nice guy and didn’t want to raise the tenants rents who had become like family. It’s not fair that the tenants have a life tenancy and the owners have the responsibility and liability and the tenants have more rights than the owners. Rent control is bad for everyone because people that have below market rents that could afford more never leave because they are protected which means that unit will never become available. It hurts more people than it really helps.