01 March 2019
Bill Highlights
- Landlords cannont increase rent by more than 7% + consumer price index in a 12 month period, 90 day notice required to increase rents.
- New “for-cause” reasons to evict tenant:
- Sale to a person who will move in
- Landlord or family member will move in
- Significant repair or renovation of unit that could cause safety issues
- Removal of unit from residential use or plans to demolish home
- If a landlord uses one of these 4 reasons they must provide 90-day notice and simotaneosly provide relocation expenses equal to 1 month’s rent.
- If landlord has 4 or fewer rentals they do not have to pay relocation expenses
- If landlord lives in the same property (2 units or less) they can use no-cause evictions anytime.
Rates – the 10 year treasury note has languished in a narrow trading range since early January. We saw a minor bump higher over the last couple of days that is reflected by an increase in closing costs of 2/10 of 1% of the loan amount. If you take a longer view of the 10 Year Treasury note it looks to be forming a “pennant” pattern that can indicate volatility or an end to the calm seas we have been sailing.
Jobs – the number people filing for unemployment for the first time ticked up slightly from the previous week and is still in a very low range.
Appreciation – the Case Shiller Home Price index showed a year over year increase in home values of 4.7% in December which is down from 5.1% in November. An annual gain of 4.7% on a $300,000 home = a $14,100 gain in equity over 12 months.