July 18, 2024

California’s Push Against Private Real Estate

California's Push Against Private Real Estate - San Diego Residential Property Outlook

New Proposed bill will reduce California rents by 25%.

Just when you think there cannot be any more draconian California measures taken against the real estate market, a bill in the California legislature, if enacted, would reduce rents by 25%!

Sure, I know this sounds crazy, but it is in fact a real possibility! The California legislature’s bill is AB 828 proposed by San Francisco Democrat assemblyman Phil Ting.

This bill like the entire liberal progressive agenda is being pushed under the guise of a coronavirus measure. It has absolutely nothing to do with our current pandemic. I will clarify that a little does have to do with our pandemic of stupid liberal progressive ideas forced upon the middle class in California!

California’s Push Against Private Real Estate

California's Push Against Private Real Estate

As of today, here is just one paragraph directly from the proposed bill that talks about the 25% rent reduction:

The bill would require the court, if it determines that the tenant’s inability to stay current on the rent is the result of increased costs in household necessities or decreased household earnings attributable to the COVID-19 virus, to make an order for the tenant to remain in possession, to reduce the rent for the property by 25% for the next year, and to require the tenant to make monthly payments to the landlord beginning in the next calendar month in accordance with certain terms.

I this certainly seems to me to be another leftist push to destroy all privately owned residential real estate in the state of California. The vast majority of rental properties in California return anywhere from 5 to 8% to the owners after all expenses are taken into consideration. So, to have a blanket 25% reduction in rent will mean that rental owners in California will be suffering a huge loss while this provision is in place.

I understand that some might say well why not reduce 25% to 5% or something like that. My answer to this argument is, keep the government out of private transactions! If people cannot abide by their legal contracts, there are specific delineated provisions for how these will be addressed. I believe the sanctity of otherwise totally legal private contracts should not be arbitrarily overridden by what is the exercise of unconstitutional powers by the state of California!

Here is a like to the proposed bill: California rent reduction bill

Here is the hyperlink to my prior post on this topic:  California Armageddon for Landlords

Here is the hyperlink to another of my prior posts: Coronavirus & San Diego Real Estate

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California’s Push Against Private Real Estate