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SHOULD LANDLORDS RAISE THE RENT
JUST BECAUSE THEY CAN?
By Daniel Bornstein, Esq.
This is a provocative question that depends on a host of factors. Assuming a rent increase is permissible, is it advantageous to raise rents now? That’s what we attempt to answer here.
We were asked in this town hall webinar to make a prediction on how the outcome of the
Presidential election would impact the rental housing community and we dodged the question a bit on a day when we awoke to an orange tint in the sky. Our response was that as the future got stranger and stranger, we were living day to day with the hope that we all would return to some semblance of normalcy soon, but had no understanding of what would occur next.
FAST FORWARD TO TODAY AND WE FINALLY HAVE A SENSE OF CLARITY
After lawmakers and the Governor got together to
finalize legislation to deal with the economic fallout of the pandemic and distribute billions of dollars to landlords to recoup rent debt, we hope that Assembly Bill 832 is the last extension of tenant protections and is the final chapter in what has been a dizzying and confusing regulatory regime that seemed to change on a weekly and monthly basis.
HAVE WE REACHED A TURNING POINT WITH RENTS?
There have been some conflicting numbers floating around as to what the bill of health is for California and the Bay Area.
We were taken aback by this CNBC article that reports that San Francisco saw a 79% increase in prospective renters compared with 2020. We can confirm that there has been an uptick in showings, but when we look at the composition of apartment shoppers, it is largely existing Bay Area renters looking to take advantage of lower rents to even upgrade to nicer digs.
More than a practitioner in landlord-tenant law, Daniel Bornstein is the Broker of Record for Bay Property Group, a property management company that protects and optimizes the investments of landlords. He is also renowned for his educational seminars and is called upon as an expert witness in complex real estate litigation matters. To avoid or resolve friction within rental units and cauterize risk, Daniel is happy to dispense informed advice to owners, property managers, and other real estate professionals looking to survive and thrive in today’s challenging and litigious rental housing market. Call 415-409-7611 or email daniel@bornstein.law.
APARTMENT MANAGEMENT MAGAZINE - FEBRUARY 2022 CS-13