California and rental limits
What is happening in California that is so important in real estate? Our team decided to investigate this nation, discovering that ... Are you curious to learn more? Well then you just need to continue reading our mini article. Today we have created an article focusing on the "anomalous" situation that is raging in this US federal state. But let's take a step back before getting to the heart of the subject.
Precisely in California, in fact, a law was enacted that will come into force in 2020. A law bearing the signature of Gavin Newson, the governor of the richest state in the United States of America.
Defined as ‘’ Tenant Protection Law ’’ involves about eight million apartments.
Exactly half of all homes bound by a lease. How is it realized? It will not be possible to increase the rent by more than 5 percentage points each year, for all homes that have been built for more than 15 years.
However, there is no reference to privately owned houses. But to those belonging to the big real estate groups, or, better still, to the big listed companies. What will the owners have to do? Without a doubt, specify the main causes relating to the hypothetical breach of the contract.
And which are the most common?
- Delinquencies
- Damage to the house
- Property recovery
- Restructuring
What good is it then to launch a similar law? Among the benefits of this maneuver is the primary need to protect potential tenants from hypothetical rent increases and evictions.
A similar situation emerged in Oregon. All this, also in this case, is aimed at limiting the excessive increase in prices (in rents) to protect the demand side.
It is known, the world real estate market, in recent years, has suffered not a few shakes. First of all, those deriving from the active entry of the Millennials. An increasingly demanding category that has poured mainly into the signing of lease agreements. The excessive increase in demand in this area has obviously raised prices. A physiological consequence, but which risks falling back into the pathological.
Well, there are no particular certainties about how these political initiatives can be successful. It all depends on a set of factors. Political instability, the elimination of payments through the use of mortgages, to the advantage of cash payments and even migration, have certainly negatively influenced the entire world real estate system. Elasticity is preferred to rigidity.
According to leading economists and industry experts, the risk is to see a "devalued" market to meet the needs of customers, increasingly less willing to pay large sums of money.
So what will happen in the coming months? Although we do not have great data that can make us express certain predictions, we can assure you that we will always keep up to date on the subject. All you have to do is consult our site daily, to actively follow up any implications on the world real estate market!
Precisely in California, in fact, a law was enacted that will come into force in 2020. A law bearing the signature of Gavin Newson, the governor of the richest state in the United States of America.
Defined as ‘’ Tenant Protection Law ’’ involves about eight million apartments.
Exactly half of all homes bound by a lease. How is it realized? It will not be possible to increase the rent by more than 5 percentage points each year, for all homes that have been built for more than 15 years.
However, there is no reference to privately owned houses. But to those belonging to the big real estate groups, or, better still, to the big listed companies. What will the owners have to do? Without a doubt, specify the main causes relating to the hypothetical breach of the contract.
And which are the most common?
- Delinquencies
- Damage to the house
- Property recovery
- Restructuring
What good is it then to launch a similar law? Among the benefits of this maneuver is the primary need to protect potential tenants from hypothetical rent increases and evictions.
A similar situation emerged in Oregon. All this, also in this case, is aimed at limiting the excessive increase in prices (in rents) to protect the demand side.
It is known, the world real estate market, in recent years, has suffered not a few shakes. First of all, those deriving from the active entry of the Millennials. An increasingly demanding category that has poured mainly into the signing of lease agreements. The excessive increase in demand in this area has obviously raised prices. A physiological consequence, but which risks falling back into the pathological.
Well, there are no particular certainties about how these political initiatives can be successful. It all depends on a set of factors. Political instability, the elimination of payments through the use of mortgages, to the advantage of cash payments and even migration, have certainly negatively influenced the entire world real estate system. Elasticity is preferred to rigidity.
According to leading economists and industry experts, the risk is to see a "devalued" market to meet the needs of customers, increasingly less willing to pay large sums of money.
So what will happen in the coming months? Although we do not have great data that can make us express certain predictions, we can assure you that we will always keep up to date on the subject. All you have to do is consult our site daily, to actively follow up any implications on the world real estate market!
