Is rent control destroying the housing market? In this seminar, we dive deep into why the current "CPI-based" rent increase formulas are a mathematical failure for income property owners. While policymakers use the Consumer Price Index (CPI) because it sounds "fair," it completely ignores the skyrocketing reality of operating rental housing in today's economy.
We break down the "Perfect Storm" facing landlords:
The Insurance Crisis: Major carriers like State Farm and Farmers are canceling policies, leaving owners with premium jumps of 50% or more.
The Utility Gap: Water, sewer, and trash rates are rising by 10–20% while rent increases are capped at a fraction of that.
The Construction Spike: Why it now costs 30–40% more to replace a roof, repair a foundation, or upgrade electrical systems for safety.
Hidden Taxes: Local parcel taxes, RSO fees, and business license costs that CPI never captures.
What You'll Learn:
The Birkenfeld Legacy: How a 1976 landmark case established rent control but also guaranteed a "just and reasonable return"—a promise currently being broken.
CPI vs. Reality: Why a "basket of goods" like bread and clothing doesn't reflect the cost of copper piping, HVAC labor, and property taxes.
A New Formula: We propose a shift toward Cost-Based Rent Adjustments to ensure the long-term survival of our housing stock.
#RealEstateInvesting #RentControl #LandlordRights #PropertyManagement #HousingCrisis #CPI #InsuranceCrisis #CaliforniaRealEstate #IncomeProperty
