Special Report: How CA Prop. 21 Could Impact Investors
California Initiative Risks Upending State Apartment Market; Investor Due Diligence Increases in Importance
Fourth Quarter, 2020
Proposition 21 introduces a new law that alters how rents are adjusted during tenant turnover. Currently, operators are able to lift rent to the market rate during a vacancy. Under the new law, rents will be controlled during vacancy. Furthermore, thousands of additional apartments will be eligible for rent control.
Report Highlights:
Rent growth limited through vacancy, permanently altering the apartment market
Potential law could discourage reinvestment in older properties
Properties older than 15 years will be eligible for rent control