New Rent Caps Increase Number of Controlled Units
California recently passed AB 1482, which seeks to cap rent increases at 5% plus the local rate of inflation on apartments 15 years old or older. This increases the number of units subject to the caps, to 65% of the total inventor (or 1.65 million units). These units were not previously covered under rent control rules.
The new law will be implemented at the start of 2020, and will have the greatest impact on the largest markets. The new ordinance will impact nearly 430,000 apartments in the Los Angeles county alone. San Diego and Orange County are also expected to see significant impact.
Some communities have already implemented lower rent increase caps and so must comply with those municipal rent control ordinances. About 25% of California’s total inventory, located in areas of Los Angeles, San Francisco, and, more recently, Inglewood and Mountain View, are subject to these lower rent caps.
Keystone Commercial Brokerage serves the needs of commercial real estate investors in the Santa Clara and San Mateo counties, specializing in commercial property, multi-unit residential, office space, and multi-use property. Paul Phangureh has over 16 years of experience in buying and selling in the Santa Clara and San Mateo County areas. Contact Paul at 650-924-2544, or email at [email protected]