return2ozmaL.A. County wants to cap rent hikes at 3%. Landlords say that would push them to sell
RememberTheApollo_Why would that push them to sell?
rc_buggyCosts rising more than 3% a year. Since it’s California I’d imagine the insurance is going up much faster than 3% of total ownership costs. If small landlords cannot stay in the black because they can’t afford the insurance with capped rent increases they will sell to the entities that can afford to self-insure. Corporations like BlackRock
The running costs are not only insurance costs. The insurance “crisis” e.g. entirely predictable results of climate change affects everyone and why would the tenants have to foot the increased risk of damage to their landlords property?
Finally i doubt that it will just be swept up by actors like Blackrock. If the profit is limited due to the law, then the value of the property will reduce until equilibrium at which point each solvent market actor has equal opportunities. Because of the 10 Million property values now at 6 Million, the insurance rate will react accordingly.