Positive Future #210 (Feature photo – Apartments – CCA SA 2.0 Generic)
It is not unusual for many high-end cities to have a stream of workers drive into town in the morning to wait, work and serve those living there. At night, the stream of workers goes out of town. Now, in California, as wealthier folks seek to occupy the places where the workers were, landlords are paying tenants to move out.
Los Angeles, along with 15 other California cities has what is called rent control regulations. In essence, rent control regulations limit the amount rent can be raised, particularly helpful for longer-term tenants.
The issue is that landlords want tenants who are grandfathered in, whose rents are below the market due to rent-control limits, to move out so they can upgrade and charge materially more to a new tenant. Now as an incentive, landlords are paying some tenants tens of thousands of dollars to move out. Some are taking the money and leaving town.
A recent article in Curbed researches how some offers are as high as $75,000. You can read the full story here: https://la.curbed.com/2018/7/26/17608272/cash-for-keys-tenant-buyout-offer
What are the consequences of helping people who make and work in the community to leave the community?