Rent Freeze issue for LA City Council - 2010

Dear Councilman Rosendahl,

Please vote No on the rent increase freeze topic coming before you. Even if it is just for a delay of a few months.

The big issue is property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. This does not affect the average tenant who is at or near Market. Especially tenants who have moved in the last year or who could move to a cheaper place as the market prices are cheaper than they were just 24 months ago. (Mkt rents in LA are down 18-20% across the west side. More inland.)

The thinking in favor of no increase for this year is the “economy is in turmoil.” But the bills have to be paid by the property owner. The city taxes on all the utilities and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Rental housing providers almost universally pay the Water and Sewer and Trash. That just went up!

Why should the tenants with lowest rents get a pass this year when the owner sorely needs every penny to keep up with rising costs? The reality is that for most hard working property owners and managers is to keep up with a shrinking bottom line. Each year we are falling behind. Less profitable year after year and more regulations and taxes and fees are heaped on our business.

The LARS Ordinance calls for a 3% minimum increase. It is typically set below CPI but above 3%. The rules call for an increase. The economy in Los Angeles is not in a dire emergency in which rental housing costs are spiking up and would justify such a hurtful move as to freeze rents extra low.

Please let all of the City Councilmen know that the freeze for the few lower rentals is a bad idea. Property owners really only have time value of the rental. Once that date is lost it is revenue lost forever. So every delay is a hit in our wallets.

It may seem a minor amount at 3% but it really adds up on the bottom line. This plan is just a taking from property owners their rightful revenue. We property owners are squeezed enough.

I provide a vital service to the community in helping people have good places to live. I am a rental housing provider. A business I am proud to be in. Call or email me if you want more information.

Thanks for considering this point on the topic.

Sincerely Keith Lambert
310-391-0821