Why Los Angeles Homeowners Should Be Concerned About Proposition 33 and Rent Control

Why Los Angeles Homeowners Should Be Concerned About Proposition 33 and Rent Control

  • The Kohl Team
  • 10/23/24

If you're a homeowner in Los Angeles, Proposition 33 could significantly impact your property. This ballot measure aims to repeal the Costa Hawkins Act, which currently protects single-family homes, condos, and new construction from local rent control laws. Understanding how Proposition 33 impacts Los Angeles homeowners is crucial if you’re thinking about leasing your property or maintaining its value.

If Prop 33 passes, local governments could impose rent control on all residential properties—even if they’re not being rented. This means you could be required to register your home and pay rent control registration fees, whether you rent it out or not. This would create additional costs and paperwork for homeowners.

More concerning is the introduction of vacancy control, which would prevent landlords from adjusting the rent to market rates when a tenant moves out. This could trap property owners with below-market rents, negatively affecting home values and long-term investments.

For Los Angeles real estate investors, this measure could also stifle new development. Without the ability to raise rents, developers may no longer have financial incentives to build, further worsening the housing crisis.

If you’re a homeowner in LA, voting NO on Proposition 33 is key to protecting your property’s value and avoiding burdensome rent control regulations.

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