We all know (or need to know) which states in the U.S are considered landlord-friendly vs. tenant-friendly. The former works with owners/landlords as pro-small business and sees these rental properties as assets to the overall business climate. It also helps clear the way of unnecessary paperwork and extra tariffs, taxes and obstacles that makes it expensive to almost impossible to do evictions when necessary. The latter wants higher taxes and basically performs in the opposite manner.
Even more dangerous than landlord-hostile (best word I can think of) is the terrible phrase “rent control.”
At its most basic level the government of each specific municipality steps in and mandates the maximum rent a landlord can charge and leaves it there. This prevents the necessary periodic rent increases we landlords need to cover inflation and other costs associated with owning rental property. I have always considered this the worst kind of economic socialism. Even though New York has done it forever and gets away with it because it is New York, we are also now seeing it underway in California and Oregon. I see that one of the two candidates who made it through the current runoffs for the race for Chicago mayor in 2020 is extremely pro-rent control.
Industry real estate owners associations such as Chicago Creative Investors Association (CCIA), of which I am a member, are actively fighting the pro-rent-control lobby already in the state legislature trying to stop this terrible business practice.
It is critical that members of our industry see this as a threat and call your elected officials up the chain all the way to the governor’s level and make it loud and clear that this practice is hostile and destructive to a healthy economy in any city market.
For more information on taking on this challenge, visit CCIA.com. Jane Garvey has written all the articles on this fight which she is spearheading for CCIA and you will see her contact information for the latest developments in fighting this threat. Even though Jane is fighting for Illinois, the process is the same when you see this creeping into your own business environment, wherever you own commercial real estate.