Update on the Possibility of a National Rent Control Bill
In one of our recent blog posts from January 18th,2023 on PropertyGuerilla.com we told you that the government is toying with the idea of rent control on a National level. Well, it seems that Representative Jamaal Bowman of NY and Senator Elizabeth Warren of Massachusetts have reached out with a recent letter to the White House signed by an additional 50 members of Congress in order to expedite this process.
The proposed "Tenants Bill of Rights" does have some merit, such as the prohibition of corporate landlords to raise rent exorbitantly to facilitate eviction to create "churn" would be an example. But to suggest rent control on all properties that have Government backed mortgages is perhaps a bridge too far and if attempted through legislation it will send shock waves in to the already frenzied housing market. Short term, it will be a housing inventory bonanza as many of the potentially effected owners will simply sell their property, so for home buyers it will be welcome relief. For those who rent their homes, which is about 40% of the households in the US, it will add even greater pressure to finding an adequate and affordable place to live.
The way to ease this situation
is not to assume control of what housing already exists, but to ease regulations
at the Federal, State, and Local levels to encourage new single and
multi-family construction thereby creating much needed inventory and the
competition that would come with it which would temper rental rates through a
free-market economy. The covid era brought us many never before seen
housing policies, some good and some not so good, and even some where
governmental agencies assumed powers that were not theirs to enact, but because
of the panacea they went largely unchallenged during that time. It's
never too early to put a plan in place with your Realtor® and Lender whether
you currently own or manage rental properties, or if you've been consider
buying for investment, or if you're a home buyer awaiting new inventory,
because whatever happens here is likely going to happen quickly, so we'll do
our best to keep you updated.