So, despite the fact that 2018’s Prop 10 failed by a wide margin with 59% against , the State of California has decided that they know better than the voters and have passed statewide rent control anyway, 25-10 for the bill. The bill will allow for rent increases not to exceed 5%+CPI (the consumer price index, which is confusing by itself), it DOES NOT exempt low unit landlords, and it is overlaid on top of existing rent control. It is no exaggeration to say that the state wants to be in the business of housing, to have all the liability be on the owners and for fees, licenses, point of sale retrofits going to the state. A quick history lesson , This is a stunning and generational about-face of the landmark 1995 Costa Hawkins legislation that the voters of the state of California agreed to allow rent control to die a slow death. This act did not allow the formation of new rent control by cities. This was written as a direct response to the Rent Stabilization Ordinance (RSO) ...

An oft discussed topic for old fogey real estate professionals that the young ‘uns should pay attention to is the special status that real estate agents have as independent contractors. In this country, Real Estate is a protected industry, mainly because it is seen politically as the main step in the ladder to the middle class. This has affected mortgage policy and real estate agents, they have been purposely given generous terms. The point of bringing these points up is that real estate does not exist in a vacuum, and it cannot exist as it does today without massive government backing, through regulation, taxation and legislation. The recent signing of Assembly Bill 5 (AB5) is a step to close this. Though the purpose of the bill is to target the ‘gig economy’ of Uber, Lyft, Doordash, Postmates and hundreds of others, there was a special exception for certain types of workers, including real estate. This policy codifies an earlier legal decision from the California Supreme Co...