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Comments on the Menlo Park Proposed Tenant Relocation Assistance Ordinance

From: domainremoved <Maya>
Date: Tue, 11 Sep 2018 00:36:34 +0000

Dear Council Members,

Although the Proposed Tenant Relocation Assistance Ordinance is well intended, I anticipate that it will create a situation of a scarcity of rental housing and ultimately a reduction in the amount of rental units and is UNFAIR!
Here are some thoughts:

1. Where is the incentive for the Landlord to continue leasing?

Quite often owners are seniors who own properties to rent for retirement income. These owners do not want to lose their property's fair market rent and particularly under government control decided not by the electorate but by legislation. Government control is exactly what this proposed tenant relocation assistance ordinance is.

Imagine that you are a landlord leasing to a couple over 62 years old. You are made aware that the rent you are charging is below market rate. Let's say the rent is $3,000 and fair market value is now $4500. The tenant's lease is about to expire. The tenant elects not to pay the new rate.

Now the owner under this program will have to pay:

A. 2 months rental subscription fee........................ $75

B. 3 times the monthly rent..................................... $9000

C. 1 time the monthly rate....................................... $3000 (Because one or more tenants is a Special-Circumstance Household, for example 62 years of age or older.)
In my scenario above and assuming base rent only, the "assistance/penalty" would amount to $12,075 for a couple only wanting fair market value. Based on the proposed $4500 fair market rent, the landlord would be penalized almost 9 months of fair market income to make up the difference. UNFAIR

Note: The alternative in the proposed legislation to the "base rent" is the "Menlo Park market rate monthly rent penalty". How do we know this will not even be higher than the base rent indicated above? I inquired of our Assistant to the City Manager, Clay Curtin, regarding if this was established and he replied that "We (Menlo Park) currently don't publish the market rate rent figure proposed in the ordinance. We would likely hire a consultant or company to figure that amount for us if the ordinance is ultimately approved, as I am aware there are several different methods and most numbers I find online are simply surveys of property listings, not necessarily the actual contracted price." More government and ultimately taxpayer expense. UNFAIR

2. How does a landlord oust a difficult tenant?

As a real estate Broker I have often seen/heard of tenants that pay their rent on time but may have other activities that make this tenant undesirable (drug use or dealing, intrusive noise, etc. ?). The Landlord has not served a written notice to cease and just wants to get that tenant out. So to evict this kind of tenant, he/she is rewarded? UNFAIR

3. Landlords, as in the example of paragraph 1, decide they do not want to deal with government interference and decide to sell, thereby reducing the amount of available and much needed rental supply units. Is this fair to tenants? UNFAIR

4. Is it fair to burden the City, our general fund, and taxpayers with enforcing this ordinance? The administrative costs can be substantial and would be better spent promoting our public safety. UNFAIR

I am including the following attachments for your review prior to the meeting:

"Yup, Rent Control Does More Harm than Good" dated January 18, 2018
"California Rent Controls: Good Intentions with Disastrous Consequences" dated May 16, 2018
"The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco" dated August 24, 2018

Thank you for your time and consideration.

Maya Sewald

Maya Sewald

Pacific Union Real Estate
1706 El Camino Real, Suite 220, Menlo Park, CA 94025
C: 650.346.1228
License #00993290
[Maya new smallest]

(image/jpeg attachment: image005.jpg)

Received on Mon Sep 10 2018 - 17:35:40 PDT

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