Landlords demand urgent reforms amid soaring costs

During a recent government meeting, discussions centered on the challenges faced by small property owners in light of rising operational costs. A speaker highlighted that 33% of the virtual rent increase serves as a subsidy for tenants, yet property owners are struggling to keep pace with escalating expenses.

The speaker pointed out that while the rent ordinance permits owners to make a profit, the costs associated with property management—particularly insurance—have surged dramatically. Reports of insurance policy increases ranging from 250% to 500% were shared, emphasizing the financial strain on landlords who must seek new insurance providers.

Additionally, the speaker noted that other rising costs, such as those from East Bay Municipal Utility District (EBMUD) and garbage services, are not factored into the cost of living adjustments granted by the rent board. This discrepancy raises concerns about the sustainability of property ownership under current regulations.

The speaker urged the government to engage with small property owners and managers before implementing new measures, suggesting that their insights could lead to more balanced policies. The meeting continued with further speakers scheduled to address the board.