The bill limits annual rent increases to 5 percent after inflation
Limits turn into guidelines......................
The bill limits annual rent increases to 5 percent after inflation
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so inflation rate plus 5%?
Limits turn into guidelines......................
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Exactly. In the future landlords who would not raise the rent annually by that much now WILL!
That was my exact thought. Instead of seeing 10% increases in rent every couple years, tenants will now see a steady 7-8% every year. Then, California will “fix” this new problem by setting a price-per-square-foot ceiling, or whatever crazy idea they conjure.
So if I’m a landlord who is doing OK as it is, with good tenants, I’ll be forced to raise the rent (up to) 5% each year, so I don’t get caught short when the socialists’ policies trash the economy.
I have not raised the rent on my tenants in several years, because they pay, and they have done some maintenance and improvement work that save me money and effort. But if I was in CA I might have to do so in self-defense.