MORE AND MORE COMMUNITIES ARE CONSIDERING RENT CONTROL MEASURES.
“As the rental market continues to be in upheaval, it’s in the interest of the housing provider to work on recovering master-billed utility costs now,” Daniel Sharabi, CEO of Livable explains. “Not every market has been affected by a correction yet, but it will happen. The time to get ready is now, especially for independent rental owners who pay master-billed utilities and own a smaller number of units. They don’t have the resources of a major corporation behind their investments to help them recover utility costs from their residents.”
On top of utility spikes and market fluctuations, more and more communities are considering rent control measures. Some, like the law passed in Pasadena, California, last fall, restrict utility bill recovery programs as being an increase in rent. So, it’s crucial for housing providers to enroll in these programs prior to potential restrictions occurring.
Even in places like Michigan, where rent control has been prohibited for 35 years, communities are rumbling about needing to implement it in the face of stagnant wages and rising costs that tenants can no longer afford. At the same time, maintaining a healthy net operating income is important for housing providers.
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