The Rental Crisis in California: How Laws and Policies are Harming Landlords

California’s Rental Crisis: Landlords Struggle Amid Tenant Protections and Squatting Issues

Californians have long been vocal about the sky-high rents in the state, and for good reason. While the inability to build new housing is a major factor, another less-discussed issue is the increasing difficulty landlords face in earning money from renting to tenants or removing non-paying ones.

The Tenant Protection Act of 2019 is at the center of many of California’s rental housing woes. This law mandates that landlords of properties older than 15 years must have a specified “just cause” for removing a tenant, even if they have overstayed their lease. Failure to meet these terms can result in landlords having to cover tenants’ moving costs or waive the final month’s rent. Additionally, tenants can now sue landlords for up to three times any damages and attorneys’ fees, giving them the upper hand in removal proceedings.

The COVID-19 pandemic further exacerbated landlords’ challenges, with eviction moratoriums causing delays in the eviction process. The backlog of eviction notices has allowed tenants and squatters to remain in properties indefinitely, leading to further financial losses for landlords.

In response to these issues, some California citizens have taken matters into their own hands. Companies like Squatter Squad offer fast and effective squatter removal services, highlighting the costs of allowing squatters to stay.

Despite the struggles faced by landlords, the state government continues to prioritize tenant protections. Laws prohibiting discrimination against tenants with government housing vouchers and limiting security deposit amounts have further burdened landlords.

Rent control has also made a resurgence in California, despite being widely criticized by economists for its negative impact on rental supply and higher rents. The state and local governments have imposed rent control measures on mobile homes, adding to the challenges faced by landlords.

Tenant advocates argue that these protections are necessary to stabilize households and reduce homelessness, but research suggests otherwise. Stronger tenants’ rights have been shown to lead to higher rents, fewer vacancies, and increased homelessness rates.

The key to solving California’s rental crisis lies in building more housing. However, the current landscape of laws and regulations is hindering this progress. As landlords continue to face challenges in collecting rent and removing non-paying tenants, the housing crisis in California deepens, with activists being the only ones benefiting from the status quo.