We need your voice to prevent San Mateo City Council from passing an “urgency ordinance” in order to temporarily ban rent increases, evictions, termination of leases for 90 days. The danger of this temporary moratorium is that it could lead to “rent control” in the San Mateo County and very likely become extended and permanent, just as it happened in San Francisco.
Monday April 11th, the Council intends to vote on this “urgency ordinance”. This ordinance will punish and penalize landlords who increase rents above 10% of the tenant’s current rent and in many cases this amount is not even close to what fair market value is. A landlord will have to pay upwards of $25,000 plus an additional $3,000 to relocate that tenant. $30,000 for a property owner to take back possession of his/her property? Seriously?
Do these council members have any idea what fair market value is and what the median price is in San Mateo to rent a home? How about $3000-$4500 per month to start. Therefore, many tenants are paying well below market value. The Government has no business and right to mandate this control over property owners rights. This is considered a form of “rent control” and “rent stabilization” which restricts the rights of the property owners to terminate leases and “evict” tenants. This is bad bad bad news, especially for the already lower income families in the San Mateo County.
The San Mateo City Council intends to make this ordinance permanent after the 90 day trial period, and it will have a rippling, profound, negative impact on our wonderful community and contribute to the decline in property values, neighborhood light, and contribute to the increase in “slumlords”. Furthermore, it punishes the mom and pop landlords who don’t deserve this!
If people think there is a shortage of rental units now, wait until this is passed. There will be far less rental units coming on the market and when the do, they will be priced significantly higher than what low income individuals can afford. It will unquestionably force more people out of this community because property owners will start an eviction process now, terminate any kind of leases in effect in order to protect their property ownership rights. Also, they will most likely sell their property for the high skyrocketing prices in this market and move out of the area.
As long as we see such appreciation in our property values and for every home sold there are 10 buyers competing for it, overbiding as much as $500,000 to get the house, rent will skyrocket and follow suit. Those who get these rental units are those who are willing to pay more than anyone else. Landlords will accept only those tenants who have the income and credit to pay fair market value. This is basic economics – the law of supply and demand:
- Rent control does NOT work
- Rent Stabilization does NOT work
- Just cause eviction does NOT work
For clear examples of how this doesn’t work, simply look at how San Francisco, Berkeley and Richmond, to name a few, imposed rent control. This is a long term problem and cannot be solved with an”urgency ordinance” that instantly puts a moratorium on landlords property rights to do as they choose. This will only hurt our citizens who live in San Mateo, from renters, managers and property owners together. There are many solutions that have been offered by the task force; none of which were acceptable to the Tenants Rights Movement. This does not make any sense, because the ones who will suffer the most are they very ones they are trying to protect.
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Sia Glafkides Real Estate 