Southern California landlords are currently on edge with concerns that their property may lose value if California decides to implement statewide rent control. Landlords in the southland with below market rates have been raising prices before more rent control laws kick in. AB 1482, the “anti-rent gouging bill”, has already passed the Assembly and now is making its way through the senate appropriations committee. If the bill is then signed into law by Governor Gavin Newsom, then landlords will be prohibited from raising rent prices more than 7% (including the average 2.5 Consumer Price Index) a year.
Centennial Advisors managing partner, Justin White, says smaller landlords have to have a strategy as laws keep changing.
“You’ve got to now change your strategy because if you continue to do that or if you continue to operate that way over the last 6 – 9 months, you could potentially be stuck with rents that are significantly below market.”
He tells KFI’s Corbin Carson that doing this ruins the value of the property.