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Old 08-11-2019, 03:28 PM
Ravenman is online now
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Join Date: Jan 2003
Location: Washington, DC
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Quote:
Originally Posted by DrDeth View Post
As I said before the mild rent controls of San Jose are universally agreed upon- even by the landlords and owners- to be a good idea.
So if the rent control system was working so well, why did San Jose lower the allowable annual rent increase from 8%, which was established in 1979, to 5% as of 2016? Was it maybe because there was both a shortage of rental units and costs were going up? Because everyone was satisfied three years ago that the rent control law was kickin' ass and fixing problems? By the way, it sounds like the city council is starting to question whether its rent control laws are backfiring, as the "mayor said he’s heard of developers not moving forward with housing projects potentially because of" an aspect of the rent control law that may be discouraging building new units to replace/expand units that are currently rent controlled.

I mean, there's no economist in the world who could possibly predict that price caps would result in shortages. I mean, that's just totally crazy talk. It's not like every econ 101 textbook has a graph in it showing supply and demand and what happens if price controls are instituted -- people just don't study this sort of stuff at all. Next someone is going to say that if people don't practice good hygiene, then disease may spread! Can we just agree that science has no place in public policy?

Quote:
And raising the rent on a long term great tenant so that they cant afford the unit, so that you get a crappy new tenant- is just bad business.
That's a decision that ought to be dealt with by landlords and tenants, not public policy. It also has nothing to do with the question here, since nobody is propounding a law that landlords MUST raise rents on good tenants. But consider the reverse: a building that has 50 great tenants and one bad one. A good landlord may try to drive the bad guy away by raising rents steeply. That can't be done in rent controlled cities, so the 50 good tenants have to live with the one guy who is a PITA because the good-hearted landlord in this scenario can do nothing about it.

Last edited by Ravenman; 08-11-2019 at 03:29 PM.