On April 6, the San Diego County Regulatory Agency voted to propose tougher rental controls and evictions for “just reasons” that would apply across the county. On paper, many groups have focused on how this move will protect tenants.
However, many have overlooked or simply been unaware of how these measures are exiting landlords and owners by precluding any possibility of removing tenants unless they pose an “imminent health and safety risk”. The new country-specific regulations Go too far beyond the strong national safeguards already in place and are having a significant impact on residential construction in San Diego.
The consequences of this regulation are worrying for a number of reasons. Housing providers are no longer allowed to protect their tenants from annoying and potentially dangerous tenants. This ultimately endangers the safety and quality of life of the families who are forced to live near these tenants as they deserve a stable and healthy environment.
Housing providers, especially independent landlords, are being forced to carry an unfair part of the burden, and this story is not being told. In the past year, many of these housing providers had to forego rent payments. This new regulation would continue to put the weight of the problem on the owners.
For some of our mom and pop landlords, especially seniors, who use these funds as their main source of income, financial stability is severely compromised. In addition, the new regulations would even prevent them from moving into their own rental property if their main residence is foreclosed or if this is necessary for financial reasons.
In the meantime, landlords must maintain their property to reasonable standards and keep up with their bills while waiving rent. There is no consumer price index cap on these costs, and housing providers shouldn’t be forced to shoulder the burden of this pandemic – especially if they don’t have the right to protect their property from problematic tenants.
In addition, the new protection will have a significant impact on home sales. In situations where there is a tenant, the regulation would prevent new buyers from removing them and moving into their own homes. This would also happen if the purchase was made with the intention of using the house as a primary residence.
This also calls into question potential liability and disclosure obligations, and could prevent potential buyers from qualifying for certain types of financing, including VA loans that require owner-occupation. This is very unfair, especially to potential buyers from our military community.
The new regulation could also discourage residential investments as most homebuyers do not want to run the risk of a tenant not leaving the property or not paying rent. Additionally, it could have a hugely negative impact on the home buying and selling process, which would then impact the tenant community by reducing the number of affordable options on the market.
These new regulations are of particular concern as the county has the resources to provide the rental support it needs. Instead, $ 40 million in COVID relief funds were used to provide rewards for the county employees. The median salary in the county is more than $ 120,000, and many of these people have kept their jobs during this crisis. It is imperative to reallocate these funds to support those hardest hit by the pandemic.
Although they would expire 60 days after you cancel your home stay on June 15, these terms are incorrect. The county’s stricter regulations will have a negative impact on property owners – some may be taken out of business and room for property investors to enter the market. This will have long-term implications and will set a precedent for regulations like these safeguards to continue into the future.
Today more than ever, families need clean, safe and affordable housing. This regulation is not the answer and will do more harm than good. While it aims to protect tenants’ rights, it does not take into account the harmful effects it will have on property owners. In addition, these regulations will reduce residential investment, increase costs and prolong the current inventory crisis, which will harm tenants and bring home ownership further out of reach.
Before the next vote on May 4th, it is important to know how it works new evacuation protection will affect the entire community.
Carla Farley is the owner of Corban Realty and President of the Greater San Diego Brokers Association.