Get Ready: November 2024 Elections Set to Possibly Shake Up Rent Control Laws!

Dear Investor,

As the one of the leading apartment agents in Southern California, we at Shant Sherbetdjian’s Southern California Apartment Group are concerned about the ongoing threat posed by rent control initiatives. Today, we want to shed light on the danger facing property owners and landlords in Southern California.

Michael Weinstein, President and Founder of the AIDS Healthcare Foundation (AHF) has once again spearheaded a rent control initiative for the upcoming November ballot. Over the past decade, Weinstein and AHF have aggressively pushed for restrictive rent control measures through Propositions 10 and 21 in 2018 and 2020. Despite pouring millions of dollars into these campaigns, both initiatives were defeated at the polls.

Undeterred by past failures, Weinstein and AHF are now promoting the "Justice for Renters Act," a proposal that threatens to further erode landlords' rights and destabilize the rental market. The choice of name is not accidental. The name "Justice for Renters Act" is a deliberate choice meant to win public support while hiding the harm it could cause property owners. If passed, this act would:

• After a tenant moves out, the city may have the authority to regulate the rent for your unit, similar to New York City's "vacancy control." This means you might not have the freedom to set rental rates based on market conditions.

• Revoke Costa-Hawkins Law, bringing new residential developments, single-family homes, condominiums, and accessory dwellings under rent control.

• Put all rental properties under local rent control rules, allowing them to impose strict annual rent limits, even on units previously exempt.

Property owners could face significant financial losses, with estimates suggesting a potential erosion of 40% or more of the equity in rental properties if vacancy de-control is eliminated. Moreover, the removal of Costa-Hawkins—a state law that currently exempts certain properties from rent control—could further exacerbate the situation, leading to increased uncertainty and financial hardship for landlords.

It's essential for landlords and property owners to stay informed and engaged in this critical issue. At Shant Sherbetdjian’s Southern California Apartment Group, we're committed to providing assistance and resources to help navigate these challenging times. Whether you have questions about the potential impact of rent control initiatives or need guidance on protecting your property rights, don't hesitate to reach out to us. We're here to support you every step of the way.

In conclusion, we encourage fellow landlords and property owners to remain vigilant about all new communications and express your opinions on safeguarding the interests of all stakeholders.

For further information or assistance, please feel free to contact us at any time.

Your trusted apartment specialist,

Shant Sherbetdjian

Team Southern California Apartment Group

UPDATE 07/12/2024:

 “Justice for Renters Act” isproposition 33 on the Ballot! This prop threatens California rental property owners by seeking to repeal the Costa-Hawkins Rental Housing Act’s protections and expanding local rent control laws. It aims to eliminate the right to raise rent to market rates after a tenant vacates, imposing “vacancy control” instead. This measure would also extend rent control to single-family homes, condominiums, and new rentals, significantly reducing rental income and potentially decreasing property values by up to 40%, similar to impacts seen in New York.