Ideally, landlords and the residents would always see eye to eye. Unfortunately we don’t live in an “ideal” world. Sometimes disputes are inevitable. Thankfully, the City of San Jose has a mechanism for resolving disputes between San Jose property managers (or landlords who self-manage) and residents. It’s known as the “Rental Dispute Mediation and Arbitration Ordinance.”
Real estate investors often express trepidation when it comes to buying rental property in San Jose, CA. One of their biggest fears is around the city’s expansive rent control ordinance, known as the Apartment Rent Ordinance (ARO), San Jose Municipal Code Chapter 17.23. Investors often worry that the ARO will prevent them from realizing a fair return on their investment.
Sure, Mynd is a San Jose property management company. We’ll make sure your San Jose apartments for rent are filled quickly, units are maintained properly, and tenant issues resolved swiftly. But we’re much more than just a property management company. We also provide a wealth of resources and educational opportunities for the San Jose rental property owners with whom we work. We believe ongoing education is key to maximizing our investors’ ROI.
There has been a lot of activity in San Jose, California around its rent control regulations. A number of proposals have gone before the City Council for consideration—some successful, others not. This flurry of activity can make it hard for San Jose property management companies, landlords and real estate investors to keep track of what’s what.
By and large, there are few tenant protections in place in Santa Clara, CA – which is one of the reasons why the city has been attractive to real estate investors. The landlord-tenant laws are straightforward (and aligned with statewide policy); prospective buyers, owners and Santa Clara property management companies don’t have to worry about navigating the complexities of additional rent control policies implemented at the local level. The City of Santa Clara has traditionally allowed the market to self-regulate prices.
In late April, the San Jose City Council passed the “Tenant Protection Ordinance,” a broad range of tenant protections that includes requiring landlords to have “good cause” before evicting someone and requires San Jose landlords to pay relocation assistance if evicting tenants for no fault of their own. The new law took effect immediately.
While we certainly cannot predict the future, our experience in the real estate industry provides some insight as to how the tax reform plan President Trump released last week will impact rental property investors.
The City of Oakland’s Rent Adjustment Program (RAP) has been around since 1980. The regulations outlined in the Rent Adjustment Ordinance are intended to promote affordable, fair housing for Oakland’s diverse population. “We believe community begins with where you live, and we’re committed to fostering healthy relationships between property owners and renters,” the Rent Adjustment Program website states.
Even the most well-intentioned Oakland landlords and property managers sometimes find themselves squaring off with residents before the RAP Board, the authority that oversees the City of Oakland’s Rent Adjustment Program. There is no need to panic. The RAP Board is intended to mitigate landlord-tenant disputes fairly, efficiently and in accordance with the RAP guidelines. In fact, landlords and Oakland property management companies who carefully follow RAP regulations will find the process relatively straightforward.
Real estate industry experts have expressed mixed emotions about President Trump’s proposed changes to the tax code. The changes will certainly affect homeowners differently than they affect real estate investors.