Tenant Protection Ordinance Solutions. Last week, we shared our concerns. So here are the solutions we think would work better.
As you recall the San Diego City Council approved a draft ordinance in a late-night meeting that would aim to give renters in San Diego even more protection from no-fault evictions.
Even with obvious majority opposition the council approved the draft ordinance with several amendments, in an 8-1 vote. The legislation now moves to a second vote on May 16 before it receives final approval.
The state of California enacted stricter renter protections back in January of 2020. AB 1482 already provides great protection to renters. That came at a cost though. Most leases weren’t being raised much more than 3-5% prior to 2020. Now, you are seeing the max increase being assessed. The use it or lose it ultimatum and the extreme increases in property costs basically force the owner to increase rents to the max.
Insurance costs, if you can get a policy are up 40%. Mortgage Rates are up. Maintenance and Repairs are really up. What are owners supposed to do? Most aren’t even making a profit or breaking event at this point.
San Diego’s plan would also require that landlords who are evicting tenants at no-fault of their own – those who are current on rent and have abided by their lease – to pay those tenants two months of contract rent for relocation expenses, and three months for seniors and those with disabilities. State Law is only 1 month. They can’t even afford to keep up and now have to pay extra?
The claim is that landlords are kicking out residents because they are paying low rent and can get more. This is the minority not the majority. Unfortunately, the one size fits all approach will end up hurting the ones doing it the right way.
Tenant Protection Ordinance Solutions from those on the front line:
- Fix the federal and state programs.
- Have more section 8 vouchers.
- Reduce the red tape to build.
- Build more federally funded and run low income housing.
- Reduce restrictions on landlords. More perks will encourage more people to offer rental housing. Basic Reinforcement theory here.
- Encourage professional management. Or require it for those bad actors who have continued to price gouge or commit fair housing violations.