I am in a quandary. Living in California there is very little incentive for me to vote since the state always gives its electoral votes to the Democrats, and the Congressional Districts are so well gerrymandered they never change party hands. My vote certainly would never have mattered, so there’s no reason for me to bother. Plus I was always worried about being picked for jury duty. I know the state claims to pick jurors from both the registered voter list and DMV records, but doesn’t that just mean if I stay off the voter list, my odds of being picked for jury duty are cut in half?
Well for once there is an issue coming up this June that I actually care about, but I don’t want to risk jury duty by registering. Proposition 98 is up for a vote in the next election. Prop 98 is focused on real estate issues, but what excites me is one section that would ban rent control in the entire state of California. As the Legislative Analyst’s Office helpfully explains…
The measure generally prohibits government from limiting the price property owners may charge others to purchase, occupy, or use their land or buildings. This provision would affect local rent control measures. Specifically, government could not enact new rent control measures, and any rent control measure enacted after January 1, 2007 would end. Other rent control measures (those enacted before January 1, 2007) would be phased out on a unit-by-unit basis after an apartment unit or mobile home park space is vacated. Once a tenant left an apartment or mobile home space, property owners could charge market rate rents, and that apartment unit or mobile home space would not be subject to rent control again.
So it’s not as if everyone would be tossed out on their ass the day after the election. If Prop 98 passed, no units would come under rent control again and those regulations would slowly drift away into history.
If you’re on the liberal side of things, you’re probably outraged that I oppose rent control. So here’s why I dislike it. To start with I am a libertarian so just philosophically I dislike having the government insinuate itself into the real estate market. Practically though I oppose rent control because I find it perverse that the government sets up incentives for landlords to let their property decay. By restricting what landlords can charge in rent, they are capping profits. So the landlord needs to find profit elsewhere. Skimping on building maintenance is only natural. It’s an easy way to save money, plus it increases the odds that your long term tenants will leave. You don’t have to worry about maintaining a nice building to attract new tenants because under a rent control regime, virtually all buildings are left to rot so all renters expect a level of dilapidation.
Rent control penalizes renters who move frequently. Now why should the government do that? Usually people move because of their jobs. Why would the government want to penalize people who try to pursue better opportunities? The way I see it, rent control belongs to an earlier era. In the olden days people didn’t move from apartment to apartment in search of a better deal. You lived in your parents’ home until you were ready to move out and start your own household. There you remained until death. The only time you would move is if things became dire. The mobility we take for granted today just didn’t exist. Rent control existed for that society. Today rent control punishes regular people who move for reasons like getting a new job, living closer to their job, putting their kids into a better school district. I don’t think it’s fair to punish those people so others can live in the same place for decades.
I also think rent control has a damaging affect on the people who take advantage of it. I don’t mean “take advantage” as in gaming the system. I mean the people who remain in the same apartment for decades because the rent they’re paying is ridiculously cheap. Rent control creates an entitlement mentality. The people who most use this system begin to think cheap housing is a right. Finding a home moves from your responsibility to the responsibility of the government. Even worse than this sort of thinking, is that people can become trapped by rent control. If you stay long enough in the same apartment, you can’t ever leave because you can’t justify abandoning your super cheap rent. It’s there that your life stops and you focus your energy not on improving your lot, but keeping the status quo.
Not to mention it’s just a violation of property rights. The government should not be involved in how I treat my property as long as my decision isn’t going to physically harm others. What I choose to charge for rent affects no one but me and any renter I have.
*WHEW* That was a much longer rant than I intended at the start. It just goes to show you how much rent control bothers me. Now I have a chance to at least put action behind my belief and vote for Prop 98. However I have the nagging feeling that voting on this would be pointless. This is California after all. With its reputation I rather expect anything against rent control would lose by at least a 30% margin. Plus, as I said, I don’t want to risk jury duty. Although if I did get summons in the mail, I guess I could always throw it away.