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CA rent control

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George's analysis is correct, used to do something similar all the time. This subject is near and dear to my heart. Back in the day when I was cranking a couple of hundred grand a year appraising (yes all true but worked solo 14 hour days for 20 years or so and had no life but I was into it) I could get control of an income property for a song and eventually ended up with nine doors or about 2.5 million in market value here in the Sacramento region. Fast forward to about six years ago I ditched my appraisal career to take care of my mom (only child and no living relatives) and found myself confronted with a bunch of real estate that required renovating. So far I have done all of them for the most part to the tune of anywhere between $45 and $70K each and that's with me doing a hell of a lot the work. I am glad that I did so because now nearly all rents are at market which makes for a tidy sum every month. As an example I had a long term tenant recently vacate who was paying $800 per month for a 958 sf 2/1 and after renovations I am getting $1,450. This statewide measure is relatively mild and I had feared much worse. The powers that be in this state don't seem to have much self awareness in that they are the ones that have in some respects caused the gentrification wave that we find ourselves in and rent control is their way of blaming someone for the problem which in this case is landlords. I know this is off topic a little bit and rambling but don't get to talk to my old colleagues much anymore so apologize in advance. Since appraisers largely use historical data to render an opinion the poster shouldn't worry so much as the market will show the way. The impact on market values will be relatively mild in my opinion as the rent control measure is about ten years too late to have any real effect.
 
Exactly how can landlords in Santa Monica , Los Angeles, (and now the whole state) get market rent when the law does not allow it?

If the tenants stay then the landlords don't get it all. They only get the maximum increases as allowed.
 
Someone correct me if I'm wrong. Everything I've read about the state wide RC states it only affects areas that do not have rent control. With some exceptions properties within the city limits of Los Angeles are limited to annual increases based on the CPI. The County of Los Angeles recently enacted a temporary RC and extended it to the end of this year with increases limited to 3%. The state wide RC actually has increases much higher than these. I also think that only properties older than 15 years (not sure) are affected. Long Beach has also, or will be, enacting their own RC.
 
I didn't know that about Long Beach
 
Lots of blah blah blah on this site... No one knows where to get information on this question ?

And anyone who says "analyze the market", this is not helpful due to the law just being passed with no current data. I asked a successful commercial agent who said "we just have to wait and see how things pan out". Not really an option for an appraiser...

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I might be inadvertently dumbing down the thread, but as long as the comparables are located in a similar jurisdiction, and the assignment is not prospective, what does it matter?
 
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