What Is the Rental Affordability Act?
There’s no doubt that the rental market in California has been hit hard over the last 2 years with that 2018 attempt to repeal Costa Hawkins, state-wide rent control, Coronavirus, and now another attempt to repeal Costa Hawkins with the Rental Affordability Act.
What is the Rental Affordability Act? It’s the latest bill by lawmakers to enact rent control on a bigger scale across California since the current rent control measures that we have in place just prohibit landlords from raising the rent by more than 5% plus inflation.
About the Rental Affordability Act
Unlike previous bills, with the Rental Affordability Act, the lawmakers behind this bill have said that they’re willing to remove the bill from the November 2020 ballot if California Governor Gavin Newsom is willing to suspend Costa Hawkins.
Will the Governor suspend Costa Hawkins? That’s unlikely since the bill was voted for by the people but the reality is that we live in a new world following Coronavirus and it’s quite possible that the governor would be willing to consider suspending Costa Hawkins especially once we get into the summer months and it’s likely that more renters in the state will be unable to pay their rents.
May 2020 Brings New Challenges
All the recent statistics have shown that most renters across the United States were able to pay their rent in April. This is good news because going into April there was a general fear among landlords about what the month would hold.
The reality is that May could be very different especially if another economic stimulus bill isn’t past and people are not able to go back to work.
Needless to say, for landlords across the Central Valley, the role of property management becomes all the more important during a crisis like coronavirus because, property management companies like RPM Central Valley save owners the time, money, and hassle of having to manage their investment properties themselves.
Contact RPM Central Valley
To learn more about the property management services that we can offer you contact us today by calling 209-572-2222 or click here to connect with us online.