Santa Barbara City Council’s decisions have consequences!
The City Council recently voted to require all landlords to do one-year leases (no more month to month) and then automatic renewals with no rent increases.
In the council’s vaulted wisdom, members also decided to require a landlord to pay the tenant two months rent as relocation assistance if the landlord decided to sell the property or even if landlords were going to house one of their own family members.
Do the council members believe that all rental properties are paid off and so rental income is all profit? Dream on! Property owners have mortgages and so must pay principle, interest, real estate taxes and insurance. Let’s not forget about the additional costs of maintenance, repairs and improvements.
Anything left over after those expenses is called “taxable income.” That’s right, then the landlord gets to pay income taxes. What a deal!
Remember that I mentioned consequences.
Because of the City Council’s poorly thought-out decision to further harm landlords, I have taken my property off the rental market and will be selling the property. I am sure that I am not the only landlord to take their property off the rental market.
The City Council keeps talking about the shortage of rentals in Santa Barbara. Guess what! Its arbitrary decision just cost the city of Santa Barbara one less rental property. Try to remember this when the next City Council election comes around.
Especially remember our mayor, Cathy Murrillo, should be voted out. She wanted landlords to pay four months rent as relocation assistance.
Arbitrary decisions have long lasting consequences.