Rent control is a hot topic in California lately, and while the laws are always changing and being debated, it’s important to know where you stand with your Modesto rental property and what you can expect in the future.
Currently, rent control does not apply to properties in Modesto. Several California cities already have rent control rules in place, including San Francisco and San Jose. In Modesto, there are no such laws and landlords can raise their rents in accordance with their lease agreements. However, there has been discussion about sweeping changes to state law that may include different types of rent control. Today, we’re talking about how that may affect your rental property.
What is Rent Control?
Rent control comes in many different forms. Sometimes, it means that landlords cannot raise the rent on their tenants more than a certain percentage every year. Sometimes, it means that rent can only be increased once every five years or once every year. It can also take the form of just-cause evictions, which means that a tenant cannot be removed from a property without a specific reason, such as nonpayment of rent.
Generally, rent control is put into place to prohibit immediate and extreme rent hikes that tenants cannot afford. While rents have risen dramatically in Modesto over the last few years, there are no limits on what Modesto landlords can do when they are setting a rental price or increasing the rent at renewal time.
California’s Legal Landscape and Rent Control
During the last election cycle, California voters had the opportunity to repeal the Costa Hawkins Act, or Proposition 10. This law would have opened up the state to new rent control laws and ordinances. While this law was voted down by more than 60 percent of California voters, various forms of rent control laws have been written and debated, and an overall renter protection package is being discussed in the state legislature. It will be important to watch where the rent control debate goes, and whether stricter laws are passed at the local or state level moving forward.
Raising Rent in Modesto
While there are no specific rent control laws on the books in Modesto, it’s still important to follow the existing laws when you’re raising rent on your tenants. For example, you need to give your tenants enough written notice before the rent goes up. The amount of notice you need to provide depends on the amount of your increase, and will generally be between 30 and 60 days.
Working with a professional property management company can offer you a lot of protection as well as resources and tools when you’re dealing with rent, tenants, and the new and potential laws. We study these things on a daily basis, we stay up to date with what’s required in the state, federal, and local arenas, and we advocate on behalf of landlords and property owners. We understand rent control in our market, and we are prepared for any changes that may take effect in the future.
Contact us at New Bridge Management today, and we’ll talk more about what rent control means for your Modesto rental property.