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

[Markle]

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.

3. You make owning rental properties more attractive, That encourages folks to either buy more rental properties to add to their inventory or other people to start buying property to rent.

Owning rental property is not for everyone.

 

[Markle]

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.

 

[Care4all]

I don't think you can solve the shortage of rentals one by one through home ownership rentals....that would take another 30 years.... Keeping rents higher.

I think the way, is to build rental complexes, as quickly as possible.....lots of them, spread everywhere that has lots of jobs, is where to start.

But who's going to invest in that...??

 

[task0778]

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.

I have no numbers on this, but there are people in the property rental business who manage enough properties and make enough profit to make it worthwhile as an investment and business opportunity. If you legislate rent controls, the profit margin shrinks over time, cuz the landlord cannot raise rent as fast as the maintenance, taxes, and insurance costs rise. Which makes those opportunities less attractive financially to new investors and so fewer new rental properties are built. And the problem is acerbated by existing rental properties fall into disrepair over time, either from neglect or normal wear and tear plus the natural events such as floods, tornados, hurricanes, and fires.

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.

Fewer people are going to buy or build a 2nd home to rent if rental controls are in place. It sounds more like there was no new home built, just an existing one that flips from owned to rented. That results in one more rental home but also one less owned home and one more person or family looking for a place to live. So, no real gain.

 

[Independent thinker]

3. You make owning rental properties more attractive, That encourages folks to either buy more rental properties to add to their inventory or other people to start buying property to rent.

Owning rental property is not for everyone.

I don't disagree with that but I stand by the things I said.

 

[Independent thinker]

Task seemed to understand.

 

[Toro]

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?

Horrible idea. It didn't work in the 1960s and it's not going to work in the 2020s.

As Marx said "History repeats itself, first as tragedy than as farce."

 

[Jarlaxle]

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

Not even a good deflection.

I don't have to be a "real estate professional" to simply compare rents with mortgage rates.

 

[Polishprince]

I don't think you can solve the shortage of rentals one by one through home ownership rentals....that would take another 30 years.... Keeping rents higher.

I think the way, is to build rental complexes, as quickly as possible.....lots of them, spread everywhere that has lots of jobs, is where to start.

But who's going to invest in that...??

HUD certainly has the money for this kind of venture. I could see hundreds of high rises in major cities- and the rents could be based upon the tenants income.

Sort of the the Carter Apartments from the great film New Jack City.

 

[task0778]

HUD certainly has the money for this kind of venture. I could see hundreds of high rises in major cities- and the rents could be based upon the tenants income.

Sort of the the Carter Apartments from the great film New Jack City.

NO. The federal gov't should not be subsidizing rental properties, or any other real estate properties either. That is not one of the functions that the federal gov't ought to be involved in, mostly cuz then they are picking and choosing who and where to spend our tax dollars that benefits some over others. If the states or cities want to address the problem, that's on them to answer to their voters for whatever decisions they make or don't make.

And before anyone asks, no I don't believe the federal gov't should be subsidizing anything that doesn't apply to everybody.

 

[Toddsterpatriot]

HUD certainly has the money for this kind of venture. I could see hundreds of high rises in major cities- and the rents could be based upon the tenants income.

Sort of the the Carter Apartments from the great film New Jack City.

 

[AZrailwhale]

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.

Example a landlord has one house to rent. The government gives him a small business grant of ten percent of the value of another rental property and a complete tax break on the income from that house for ten years. That's an incentive to acquire more rental properties and expand the market.

 

[DudleySmith]

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?

They need to make all leases month to month; I don't anybody whose lives are organized in neat 6 month bundles of time, especially when it comes to companies closing or laying off, so why should those who follow these booms around be penalized for things out of their control? That is one thing that an be improved.

 

[DudleySmith]

How about protecting everyone from rising prices in every category. Fuel, Food, etc., etc. Those same people calling for rent control are the ones that are responsible for the rising costs that created the higher rents. I wonder if anyone here remembers the lessons learned in the French Revolution. Biden, Harris, AOC and Warren are collectively saying, "Let them eat cake"

Price gouging is indeed something the govt. should be able to shut down; with most industries having little or no competition it's a necessity. Don't like that? Then get the GOP to start enforcing anti-trust laws and price rigging in everything from prices to labor costs. Be real 'free market' advocates for the first time in their history as a Party. They might then start winning elections against left wing nutjobs by more than a couple of percentage points if they're lucky. As it is now, they're viewed as what they are, liars and frauds specializing in whining over tax cuts for billionaires and scumbag corps who sell out this country every single day.

 

[AZrailwhale]

Horseshit.

In Phoenix the average rental price for a two-bedroom apartment is 1550.00 a month. The median purchase price is $315,000.00 for a two-bedroom condo. That works out to $1616.00 a month. That's a $66.00 difference and all the equity goes into your pocket, not a landlord's. I'd say a $66.00 difference is pretty damned close.

 

[AZrailwhale]

Removing regulatory constraints landlords face and increasing evictions does not make more rentals available. Landlords are already renting and if you evict a person to be replaced with another person then you aren't making any progress. Now tax incentives for the construction and operation of rental housing would increase rentals available.

Your second point is right, your first point is wrong. Removing restrictions would encourage more people to get into the rental business expanding the market to serve more renters and lowering the prices by increasing supply.

 

[Toddsterpatriot]

Price gouging is indeed something the govt. should be able to shut down; with most industries having little or no competition it's a necessity. Don't like that? Then get the GOP to start enforcing anti-trust laws and price rigging in everything from prices to labor costs. Be real 'free market' advocates for the first time in their history as a Party. They might then start winning elections against left wing nutjobs by more than a couple of percentage points if they're lucky. As it is now, they're viewed as what they are, liars and frauds specializing in whining over tax cuts for billionaires and scumbag corps who sell out this country every single day.

Price gouging is indeed something the govt. should be able to shut down;

What's price gouging?

with most industries having little or no competition it's a necessity.

Which industries have little or no competition?

 

[Care4all]

HUD certainly has the money for this kind of venture. I could see hundreds of high rises in major cities- and the rents could be based upon the tenants income.

Sort of the the Carter Apartments from the great film New Jack City.

I don't think it's people qualifying for HUD housing that are complaining.... They get money to pay for housing

This is a lower middle class, middle and even higher middle class problem....all levels of Rentals are extremely costly, and short of enough....

 

[Independent thinker]

Example a landlord has one house to rent. The government gives him a small business grant of ten percent of the value of another rental property and a complete tax break on the income from that house for ten years. That's an incentive to acquire more rental properties and expand the market.

I never disagreed with the need to de-regulate landlords.

 

[Independent thinker]

Your second point is right, your first point is wrong. Removing restrictions would encourage more people to get into the rental business expanding the market to serve more renters and lowering the prices by increasing supply.

The only way to increase rental units is to actually increase the number of rental units. If you aren't actually building, then you are not increasing the number of rental units. For every current house that gets turned into a rental it has a corresponding decrease in a unit available. Building is the only answer.