Impending tsunami of evictions

[Esel Mann]

An interesting bill which i suspect the originators fail to recognize that it will screw the renter. Bigly.

The qualified taxpayer will simply raise rents to bake in the added tax like they do with any other expense.
Short term that will make non-qualified taxpayer properties desirable to the renter. Demand surges for an already limited supply, walla, rents then come in line with those of the qualified taxpayer.

[McLovin]

It’s sad, but not surprising these days, that anyone could read that utter monstrosity of a bill and the thing they focus on is the definition of “qualified taxpayer.”

[McLovin]

Originally Posted by daepp

Well this is frightening. I read the actual proposed text of the bill, and it literally kept me up last night. I don't know if it's the 25% tax, or the fact that it literally uses the word "priveledge" derogatorily throughout the text.

And as landlord's raise their rents to make up for the lost revenue, it will actually increase homelessness.

I agree. It all frightening.
“Privilege tax”
“Racism”
“Corporations are evil”
“Even LLCs are nefarious and evil”
“Appropriate” 25% of rents
Etc etc.
It’s shocking. At least to (an ever decreasing) some of us.

[look 171]

Originally Posted by jyl

Read the bill carefully. The excise tax applies to "Qualified Taxpayers" which is defined as "“Qualified taxpayer” means a person or entity that owns 10 or more qualified properties that are single family dwellings or 25 or more qualified properties that are either single family residential dwellings or multifamily dwellings in this state during the calendar year."

The target of the bill is large "institutional" type landlords - the ones who own whole fleets of rental houses/units. I think, for that target, the cutoff (10 units if they are all single family houses, or 25 units if they are a mix of houses and apartments) is too low - the big guys own hundreds and thousands of houses and apartments in a metro region, not 30 or 50. I also think the bill is ambiguously drafted because sec (2)(g)(1) doesn't make it clear if it is counting each apartment unit or each apartment building.

A 25% excise tax is punitive, of course. I think that is indeed the bill's intent: to cripple/force out the large institutional landlords (e.g. the private equity funds that are buying houses by the hundreds of thousands) and to favor small mom and pop type landlords. I'm not saying if that's good or bad, but that is probably the intent.

Anyway, if you own dozens of rental houses or a larger apartment building, this will be a problem. If it passes, which I doubt.

How and why did they decide to stop at 10? I know more then a few individuals who own more then 10 and they work their asses off for it. They will get screwed royally. Now, its a catch 22 here. When someone owns more then a few pieces of properties, ideally they should be under an corp. when that happens, they are subject to that BS 25% tax. Do you protect yourself or pay the 25 % yearly? They hang you by the ankle knowing you will pay it. Today, its 10 properties, next months, it may be 4 or 3? Who knows?

[McLovin]

BTW I don’t think something that crazy could pass, even in California.
Right now.
I don’t think that’s even the goal.
They are very good at playing the long game.
The point is to float and “normalize” (or further cement) concepts such as “privilege” being a “racial inequity” that should be “appropriated” (taxed) for “justice.”
And the standard racism, evil corporations, etc.
So a bill with language like that which is still shocking to at least some of us will be “normal” 5 years from now.
They are effective at what they do.

[tabs]

Originally Posted by Esel Mann

An interesting bill which i suspect the originators fail to recognize that it will screw the renter. Bigly.

The qualified taxpayer will simply raise rents to bake in the added tax like they do with any other expense.
Short term that will make non-qualified taxpayer properties desirable to the renter. Demand surges for an already limited supply, walla, rents then come in line with those of the qualified taxpayer.

You raise rent by 25% the state gets 25% of that raise in rents.

Did you ever hear of RENT CONTROL? Ala Santa Monica...I worked with a guy that had 25 unit on the beach in Santa Monica and he was always complaining..ABOUT RENT CONTROL and the Queen of Santa Monica Jane Fonda...

[tabs]

Originally Posted by thor66

how about a tax on internet blather?

Why NOT!

[tabs]

Originally Posted by jyl

Realistically, for most people the "nickel and dime fees" are minor irritants, financially unimportant, and aren't controlled by the federal govt anyway - they are a state and local govt thing.

Specificity is a moving target to a Liberal..

I am talking about the climate of the times here...I will leave it to the Liberals to define "Means."

[tabs]

Originally Posted by cockerpunk

this happened under capitalism.

And the Soviet Union IMPLODED under Socialism... We can keep this up all day..

[Esel Mann]

Originally Posted by tabs

You raise rent by 25% the state gets 25% of that raise in rents.

Did you ever hear of RENT CONTROL? Ala Santa Monica...I worked with a guy that had 25 unit on the beach in Santa Monica and he was always complaining..ABOUT RENT CONTROL and the Queen of Santa Monica Jane Fonda...

Yes sure, I have heard of rent control. I'm not a CA landlord, so I've no clue if it is uniform across the state. However, looking cursory at Santa Monica, it appears there is provision to factor in recouping certain expenses and thus factor into what is the max allowable rent. They fall under surcharges. For example certain parts of appraised property tax are allowable surcharges. Perhaps the 25% excise would be an allowable surcharge.

[fastfredracing]

Want to hear about my day ? I text my tenant, and tell her, that we are listing for sale next week and that the real estate agent will need to get in to take photographs and that I will also be needing access to the property to start to clean up and take care of some things.
She says " aint nobody coming in this motherf%$ing house "
My house, I cant go there, and cannot send professionals down there . Cannot evict, cannot sell. Housing authority offices are closed to the public, and several weeks of phone calls an emails have been unanswered .
who do I call ? I am all alone here. Even as a seasoned landlord, this is extremely frustrating, and honestly , its starting to really piss me off . I am close to my breaking point , and getting ready to take drastic action .
Someone has to step in and stop this madness . I hope and prey they lift this moratorium .
The only silver lining I have is that the clerk at the magistrate told me today , that the buzz around the office is that the moratorium will be lifting at months end
I will be involved in any law suits brought against our supreme leaders when the time comes .

[look 171]

Originally Posted by tabs

Specificity is a moving target to a Liberal..

I am talking about the climate of the times here...I will leave it to the Liberals to define "Means."

I have read a lot of tabby's stuff here and think he's a very smart person, but a bit off the edge at times. This one here, I have to agree with.

[look 171]

Originally Posted by fastfredracing

Want to hear about my day ? I text my tenant, and tell her, that we are listing for sale next week and that the real estate agent will need to get in to take photographs and that I will also be needing access to the property to start to clean up and take care of some things.
She says " aint nobody coming in this motherf%$ing house "
My house, I cant go there, and cannot send professionals down there . Cannot evict, cannot sell. Housing authority offices are closed to the public, and several weeks of phone calls an emails have been unanswered .
who do I call ? I am all alone here. Even as a seasoned landlord, this is extremely frustrating, and honestly , its starting to really piss me off . I am close to my breaking point , and getting ready to take drastic action .
Someone has to step in and stop this madness . I hope and prey they lift this moratorium .
The only silver lining I have is that the clerk at the magistrate told me today , that the buzz around the office is that the moratorium will be lifting at months end
I will be involved in any law suits brought against our supreme leaders when the time comes .

We have a 24 hour notice upon entry to perform repairs and what not. Does that apply to PA or your city? We can go in for a annual inspection specified in our rental agreement. You ain't evicting her, just checking. I haven't kept up with what going on with you, but has she been paying rent during this Covid ordeal BS?

[Bill Douglas]

I'm just mentioning this conversationally. Not as a recommendation...

I had a tenant who told me he wasn't paying the rent and there is nothing I can do about it. He added further emphasis to this with lots of F*s and calling me a c*.

So I said I'm giving 24 hours notice of doing maintenance, then the next day I let off what we call a borer bomb in the living room. It's like a smoke bomb to kill borer (termites). I explained it's highly toxic and don't eat any food in the house and wash all your clothes being wearing them. An on Saturday the whole house is going to be wrapped in a plastic bubble and fumigated for borer.

Not quite legal, but he was less legal than me. And he was gone by Saturday.

[tabs]

Originally Posted by look 171

I have read a lot of tabby's stuff here and think he's a very smart person, but a bit off the edge at times. This one here, I have to agree with.

The Jews in Germany as well as Europe in general never thought that the Germans could be so barbaric as to exterminate them.

If you put into context the progression of events over the past 50 years and especially since 08 you will see that I am not so far over the edge after all. It has all been in steady decline from one debacle to another.

[asphaltgambler]

Fred, you should sit down for an hour with a good attorney well versed in your area. He/ she will give you options on / off record. It'll be the best money you ever invested.

[cockerpunk]

Originally Posted by tabs

And the Soviet Union IMPLODED under Socialism... We can keep this up all day..

yeah, and this rent crisis happened under president trump, and capitalism.

[rusnak]

Even Russia today is no longer a centralized Socialist country. They are more free-market based and becoming more capitalist.

Only a crazy person would call the government ordered stay at home shutdown a "rent crisis". If there is any crisis, it's that the evictions should have started much earlier in order to not be as numerous and widespread.

[look 171]

Originally Posted by cockerpunk

yeah, and this rent crisis happened under president trump, and capitalism.

Oh, just stop it. If you have nothing to contribute, stop stirring the pot. You dislike him, we all get it and that's fine.

[cockerpunk]

Originally Posted by look 171

Oh, just stop it. If you have nothing to contribute, stop stirring the pot. You dislike him, we all get it and that's fine.

the accusation was made by tabs that workers not being able to pay rent was somehow a problem with socialism.

just pointing out, that it was capitalism, under trump, that caused the problem.

i didn't make the comment, tabs did. dont come for me for tabs unnecessary comments.