National rent control? The usual suspects think it is a great idea. What say you?

[Captain Caveman]

It's an awesome idea..........








If you want to destroy existing housing and disincentivize future construction.

The whole purpose is for you to buy a second house or two to rent out, or to build and rent. If socialist ideas restricts this, everyone shares the misery because the incentive on housing infrastructure has gone.

 

[Independentthinker]

Removing regulatory constraints landlords face and increasing evictions does not make more rentals available.

Sure it does.

Landlords are already renting and if you evict a person to be replaced with another person then you aren't making any progress.

If you're renting your single property and the government makes your life harder,
how likely are you to buy or build and rent a second or third property?

That's what I kind of said, if this stuff actually stimulates the building of more rental properties then you are increasing rentals available. If it doesn't stimulate the building of new units, then it isn't working.

 

[Independentthinker]

How do you keep them renting if the government makes them miserable?
Does anyone ever get tired of jumping thru the hoops and stop renting?

If you have rental units already then you have to figure out a way to rent them or sell the property to someone else who will still rent them anyway.

 

[task0778]

I'm still not understanding. How do you encourage people to provide rental housing when they are already providing rental housing? It sounds to me like they want people to start renting out rooms in their houses, or in some other way talking them into renting out spaces which currently aren't for rent now.

I think it's more about incentivizing new rental housing or improving existing housing. Simply put, rent controls disincentivize both. Money (investments) flows to where it gets the most return at the lowest risk, so if you make building new rental properties less attractive then you will less of it.

 

[Toddsterpatriot]

If you have rental units already then you have to figure out a way to rent them or sell the property to someone else who will still rent them anyway.

Or sell them to someone who doesn't rent them.

 

[Independentthinker]

Tax incentives and reducing taxes encourage people to buy and hold rental properties. Has nothing to do with renting out rooms. Increasing taxes encourages people to do less of whatever you're taxing. The theory isn't difficult to understand except, seemingly, for Democrats. It has a name, the Laffer Curve.

I know the Laffer curve well, as I taught it to people I trained in business. Don't forget though that you want to be on the high part of the curve. With taxes, for example, if you are on the left side of the curve and you reduce taxes further, you will collect less taxes, not more. You have to be on the right side of the curve to collect more taxes if you reduce taxes. And, as you implied, the curve can be used for much more than just taxes, which is what I taught.

But, if you already own rental property, changing regulations and taxes may encourage the buying of new rental properties, decreasing rents, but if you already hold rental properties, it makes little difference because if you decide not to hold the rental property anymore, the person who buys it will then hold it, making no difference in increasing the number of rental properties. The only difference in that case would be if you sell the rental property to be bulldozed and a non rental property erected in it's place, in which case you would lose rental units and increasing rents.

 

[Independentthinker]

Or sell them to someone who doesn't rent them.

There would be two options that I can see:

1. You sell the rental property to someone who uses it as a rental property, in which case you are back where you started, with no more and no less rental units.

2. You sell the rental property to someone who decides to bulldoze the property or otherwise use it for purposes other than rental property, decreasing housing and increasing rents.

 

[Toddsterpatriot]

There would be two options that I can see:

1. You sell the rental property to someone who uses it as a rental property, in which case you are back where you started, with no more and no less rental units.

2. You sell the rental property to someone who decides to bulldoze the property or otherwise use it for purposes other than rental property, decreasing housing and increasing rents.

Right. Single family homes and condos would be sold to people who wouldn't rent them out.

 

[Independentthinker]

Right. Single family homes and condos would be sold to people who wouldn't rent them out.

But then I'm back to not understanding again. A living space is a living space. In order to decrease rents we need more living spaces, not the same number. Maybe I'm wrong but I thought the major part of the discussion in all of this is rental units, not homes and condos.

 

[Toddsterpatriot]

But then I'm back to not understanding again. A living space is a living space. In order to decrease rents we need more living spaces, not the same number. Maybe I'm wrong but I thought the major part of the discussion in all of this is rental units, not homes and condos.

But then I'm back to not understanding again. A living space is a living space. In order to decrease rents we need more living spaces, not the same number.

If you make life too difficult for owners of rental properties, not only will current owners not
create more rental properties, they'll reduce the number they have. If word gets out that owning
rental properties is a giant pain in the ass, people will only buy property to live in, not to rent.

That reduction in future supply and loss of current supply will cause rents to rise.

Maybe I'm wrong but I thought the major part of the discussion in all of this is rental units, not homes and condos.

Homes and condos can be turned into rental properties......and back.

 

[busybee01]

National rent control? The usual suspects think it is a great idea. What say you?​

Biden rolls out 'Renters Bill of Rights' as lawmakers push for federal rent control laws​

JENNIFER SCHONBERGER
January 25, 2023, 8:38 AM

[...]

Nearly 50 progressive lawmakers, including Sen. Elizabeth Warren (D-MA) and Rep. Alexandria Ocasio-Cortez (D-NY), sent a letter to Biden earlier this month urging the president to take executive action to protect tenants from rising rents.

Biden rolls out 'Renters Bill of Rights' as lawmakers push for federal rent control laws

The Biden administration on Wednesday announced new actions aimed at tackling rental affordability, which comes as some progressive lawmakers push for a national rent control plan.

www.aol.com

Would it help or exacerbate the problem?

I don't see any ideas coming from anyone else. It is not a ideal solution but affordable housing has been a issue that has been brewing for many years. The issue pre-dates Trump.

 

[Markle]

But then I'm back to not understanding again. A living space is a living space. In order to decrease rents we need more living spaces, not the same number. Maybe I'm wrong but I thought the major part of the discussion in all of this is rental units, not homes and condos.

Millions of single-family homes and condominiums are rental properties. Mostly owned by small investors.

 

[Jarlaxle]

Usually, they do, as with everything else, they get out of whack and then drift back.

No, it's still horseshit.

 

[Issa]

Santa monica California suffered from this. Old beat up building and bankrupted landlords. In many instances the rentees have homes and buildings but take advantage of the situation.
So surprised this hasn't been challenged at the Supreme Court. Is beyond communism.

 

[2aguy]

National rent control? The usual suspects think it is a great idea. What say you?​

Biden rolls out 'Renters Bill of Rights' as lawmakers push for federal rent control laws​

JENNIFER SCHONBERGER
January 25, 2023, 8:38 AM

[...]

Nearly 50 progressive lawmakers, including Sen. Elizabeth Warren (D-MA) and Rep. Alexandria Ocasio-Cortez (D-NY), sent a letter to Biden earlier this month urging the president to take executive action to protect tenants from rising rents.

Biden rolls out 'Renters Bill of Rights' as lawmakers push for federal rent control laws

The Biden administration on Wednesday announced new actions aimed at tackling rental affordability, which comes as some progressive lawmakers push for a national rent control plan.

www.aol.com

Would it help or exacerbate the problem?

The democrats want to destroy the private home market, and the rental market so they can come in and control it……that is all this is.

They make it impossible to build new homes and apartments by increasing respect tape, then they tell land lords how much they can charge for rent? It will make renting and buying homes too expensive without government subsidies…..this is another left wing control and power grab.

 

[2aguy]

Oh sure, let's make hundreds of thousands of senior citizens poorer.....You know, the ones that worked and bought a few modest properties, renovated, and now rent them out for their retirement income.

Most rentals are owned by individuals, not corporations though they might set themselves up as a LLC for tax/liability reasons.

So yeah when the market bears a rent increase don't tell me how much I can charge, let the local rental market decide that.

That is changing…..banks are buying up homes now..
so the democrats want to help them out by bankrupting small time property owners who rent one a few properties out….they can’t afford their properties because they can’t increase the rent when they have to, then the democrat party big banks come in and buy them up.

 

[Independentthinker]

Millions of single-family homes and condominiums are rental properties. Mostly owned by small investors.

So, who are they going to sell the homes to instead of renting them? The very same people who rent now, causing more rental vacancies. It doesn't help if you sell a rental home to someone to buy the home when that person already owned a different home in the first place. If they didn't own a home in the first place then they were renters and there will now be more rental homes available, decreasing rents.

 

[Markle]

No, it's still horseshit.

I take it then that you're a real estate professional.

 

[2aguy]

So, who are they going to sell the homes to instead of renting them? The very same people who rent now, causing more rental vacancies. It doesn't help if you sell a rental home to someone to buy the home when that person already owned a different home in the first place. If they didn't own a home in the first place then they were renters and there will now be more rental homes available, decreasing rents.

No....when the owners can't increase rents to maintain the units, they will have to sell....then the banks can increase the rents at a new level.....you can bet your ass that will be allowed......

 

[Care4all]

If we increase supply of rental properties, it will make them more affordable... decreasing supply, less affordable

But no homeowner wants a rental complex near them...NIMBY....