LA Curbed claims that renters in Long Beach could receive relocation payments if rent hikes force them out of their homes. Landlords who raise rent over 10% within a one-year leasing contract would owe their residents anywhere between $2,706 and $4,500. The compensation would be determined by the number of bedrooms and would apply only to multi-family residences.
It’s a familiar story. With an exploding population and an overall shortage of units, Long Beach policymakers have proposed the bill as part of a larger California trend. LA Curbed notes that in just Long Beach alone, rent has risen 25.8% in just the last 5 years. But statewide initiatives to lessen the rates of evictions and resulting homelessness have been quick and harsh.
Rather than pay higher rent, residents are fleeing their current units in droves. For some, it’s not a matter of choice. Charging an average rent of $1,418 for a one bedroom or studio apartment, owners of multi-family buildings are facing penalties for alleged price gouging.
The $2-4,500 relocation payments are estimated to provide residents with at least two months of the average area rent to help them land on their feet. LA Curbed claims that in keeping with other recent California ordinances, seniors and disabled residents are being allowed an extra sum of $2,000 if they’re asked to vacate, with the provider yet to be disclosed. In other words, property owners are not responsible for fronting this additional fee.
It’s possible that relocation payments are also going to be extended to residents who are asked to vacate their homes due to remodels. Though unit pickings are already slim, many property owners are revamping units to justify their proposed rental spikes. The result? More displaced tenants and fewer places to live. The relocation payment would help tenants compete with hordes seeking housing.
The high demand for residency in the Long Beach area has landlords evicting tenants left and right, attempting to find suitable replacements for those who refuse to keep up with the market rate. To combat the recent outpouring of notices and lawsuits, local ordinances have been put in place throughout California to severely limit justifiable cause for eviction. Barring criminal activity, landlords are expected to be much more lenient with their tenants’ violations of terms.
Special considerations are being made to protect landlords who are trying to keep their rental rates affordable. The 10% benchmark, for example, would exclude Long Beach property owners who make reasonable adjustments to unit payments. Landlord livelihood, retirement, and a fair competitive cause to fluctuate rent are also being factored into the policymakers’ decision.
As a property manager, you have a right to fill your units and take advantage of pricing power. Real Property Management California Coast will perform a free assessment of your property to determine its true value. We can help you stay informed and organized so that you know your rights and are always compliant with local law. We’ll also handle any tenant communication so you avoid the hassle and the negotiations. Contact us today for assistance in managing your property.
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