There are several issues that can illicit such passioned opinions as rent control. Okay let’s exclude abortion and illegal immigration and just stay focused upon the intent of this blog which is real estate. On June 3rd you will have the opportunity to state your opinion as this issue will go before the voters. As you can imagine the backers of this proposal are property owners. According to the LA Times, the sponsors of this initiative have spent about $2 million to put this before the electorate.

No Rent Control in Pasadena

There have been past attempts to put “rent control” on the ballot here in Pasadena. It has yet to be successful. This issue really has more to do with the City of Los Angeles and its 600,000+ units that are currently under the rent control provision. If the measure is passed in June it does not immediately impact the tenants who reside in a rent controlled building, but it would eventually phase out the cap, provided the tenant vacated the building. A property owner who owns a rent controlled property is only allowed an annual rent increase of 4%.

A Divisive Issue

Attempting to limit the amount of income a property owner can receive is the antithesis of capitalism and the free market system. An individual land owner has no obligation to guarantee the “life, liberty and pursuit of happiness” to a tenant. What we do have are activist city councils who in their attempt to “provide for the common good”, ignore the rights of owners to set their own rates and maintain their properties. Rent control provides no incentive to maintain and upgrade living standards, since you get what you get. Just ask the city. In the intent, we loose the translation. The same proponents of rent control are the same people who get the full benefit of Prop 13. I got mine, now you need to give up yours.

Why Not Intellectual Property?

If cities have a need to impose controls on rent and real property, then let’s go ahead and extend the same restrictions to intellectual property. I would like to see the city of Los Angeles or Santa Monica tell Microsoft that instead of charging $199 for a Vista upgrade, they are limited to only $99. And while we are at it, tell Warner Brothers and Sony that the new DVD’s can only retail for $9.99, not the suggested retail of $19.99. Now I think you begin to get the idea of how ridiculous this concept is.

Well Intended But Misdirected

Rent control in theory is a good concept. Due to the extraordinary cost of living in this area there should be a subsidy for those who can least afford it. You just cannot expect the small investor to tote the note. Cities should also explore more options for affordable housing. Unfortunately, these are complex issues with no easy answers.

Tags: rent control