This is a question I’ve been asked several times over the past week, mainly from landlords in CA. That’s because CA just passed statewide rent control in an effort to ease the housing crisis in that state. We can debate for days on whether or not rent control is a viable way to make housing more affordable.
This year the Colorado Senate voted down proposed rent control. Denver is currently twice as affordable than San Fran, as well many other cities in CA. Current clients of mine with ties to CA have told me this rent control bill actually creates the exact opposite result as intended: many long term renters have ‘sweetheart deals’ in place because they’ve been responsible over a long period of time and their landlord gives them a break because of it. Now, these landlords are forced to raise their tenant’s rent to market rates because they won’t be allowed to increase rent over 5% moving forward with rent control measures in place.
If you’re weighing your options on potentially selling in a rent controlled state, lets discuss how Denver investment properties could be a better solution through a 1031 exchange. Just interested in purchasing investment properties? Lets discuss some great opportunities I have as well.