San Jose Rent Control Improvements On The Table
There’s great news on the way for a small subset of California renters. San Jose rent control is about to get stronger. This news may not be welcomed by landlords, but the San Jose City Council has agreed to open discussion on ways to strengthen protections for tenants in Silicon Valley.
Opening discussion can lead to rabbit holes that never actually go anywhere, so let’s look at what they’re looking at and what the chances of real change are.
Renters in San Jose are in trouble. There’s no question about that. Effective Coverage doesn’t just offer San Jose, CA Renters Insurance, we also believe that tenants need protections because the real estate market in CA is largely agreed to be somewhat out of control. Part of the necessary protections for tenants include making sure that housing is affordable. There are a number of ways to make policy that leads to affordable housing. Many of them are dealt with on the federal level, and are outside the control of local residents.
San Jose rent control, however, is an easy way the local government can make affordable housing policy that’s handled locally. In a 9-2 vote, the council agreed to look into reducing the amount of allowable increases in rent. Currently, eight percent is the maximum allowable increase year over year, given that a new lease is signed. It’s possible that this number will be reduced, and they’re exploring the options, but it’s fairly unlikely.
Maxiumum allowable rent increase is a way that San Jose rent control can work for both tenants and property owners. Some increase is necessary and beneficial, because the cost of doing business, taxes, and other costs do increase over time. Landlords need to know that they’ll be able to continue making a profit over many years, in order to purchase properties in San Jose. Real estate increases in value over time, but operating losses aren’t acceptable in the short or medium term, either.
The council also is investigating the creation of an ordinance that would only allow termination of a tenancy for a just cause, not simply to find a new tenant willing to pay a higher rent. This is an important protection to existing tenants, and it meets a policy goal of regulation that benefits consumers while being as unrestrictive as reasonably possible. While only about 43,000 units in San Jose are rent controlled, these residents need to be protected. It’s likely that this ordinance will eventually find its way into law.
Landlords largely believe that rent controlled units should also be income controlled, and the council agreed to investigate this option. As a practical matter, this theory is unlikely to ever find its way into law. Why? Because all rent controlled units are not the same. It may not be practical or reasonable to income control a unit that’s also rent controlled, but is in an upscale neighborhood, for instance. Since rent controlled units are the ones built before 1979, and neighborhoods have changed somewhat in that time, this is a very real concern.
Whatever your thoughts on San Jose rent control, it’s an issue that the city council is giving serious consideration to. It’s good for renters, there’s no question there. Do you know what else is good for renters? Getting renters insurance in San Jose. Protect yourself and your family for as little as fifteen dollars monthly. Just call (800)892-4308 or click to get covered - whether you need San Jose renters insurance quotes online or coverage anywhere else!
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