It’s not easy being a landlord or a tenant in 2020 as it has always been a relationship of opposing benefits. Despite the tension, people find a way to make it work in a mostly civil environment. But in the future the landlord/tenant relationship may get harder.

What happened? Authorities stopped building and downzoned neighborhoods for lesser density. By the time the low inventory issue was realized it was too late to make up for decades of underdevelopment. Compounding this situation, institutional investors purchased housing for rentals. According to one source 60% of Angelenos are presently renters with the trend predicted to rise.

Low inventory has created stressful relationships with tenants, landlords and regulators. This is an issue that all citizens should participate in solving.

Here are the changes that have happened already and the ones that are being discussed:

• 2019 City of Los Angeles: Eviction Defense Program aka Right to Counsel. Tenants in the city get free legal representation paid by all residents.

• 2020 State of CA: AB1482 (for 10 years) - Tenant Protection Act aka State Rent Control Highlighted details: Qualifying properties - all properties older than 15 years - some limitations on SFR; annual increase allowed - 5% max + CPI(10% max total); evictions must be just cause No-fault termination - one months rent to tenant or assist with cost of move. Link to bill: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB148

• 2020 State of CA: SB1188 - Occupancy of property for people at risk of homelessness.

• Proposed: L.A. County Fire parcel tax increase for shortfall needed to maintain infrastructure and for fire prevention.

• Proposed: LA Vacancy Tax - Tax to be paid by property owners if a property sits vacant.

• Proposed: State SB50 - Larger/denser developments near transportation hubs

• Proposed: State AB22 - Every child and family - right to housing

• Proposed: State AB53 - Limitation - Owner cannot request if applicant has a criminal record.

• Proposed and defeated: L.A. City - Tenants right to form associations(unions). Could withhold rent if grievances are filed.

• Proposed: State - “Split-Roll” - removes commercial properties from Prop 13 property tax protections. To be taxed at current market value. Properties under 3-million to be exempt. Impact on business owners with triple-net leases to be very large.

• On State ballot in 2020 election: Prop 10(version 2) - Will create vacancy control. When a unit becomes vacant rent can only go up a small percentage rather than to market rate. This will create permanent low-priced units and permanently reduce the value of their buildings.