Apartment Trends Magazine May 2019 | Page 25

The real question is how much to think before action is warranted, and what are the unintended consequences of various actions? national/world investor market of institutional monies? Or how about the geographic dysfunctions as one jurisdiction creates rent control while across the highway the next jurisdiction does not? One could create a real “have and have nots” scenario in visual comparison over time. Maybe Oregon has considered it? Oregon recently passed legislation known as Senate Bill 608 limiting rent increases to 7%, in addition to inflation. Subsidized rent would be exempted, as would new construction for 15 years. If tenants leave their residences of their own volition, landlords would be able to increase the rent without a cap. Note based on the rent change table, the Oregon bill would smooth out rent increases if they got frothy. Another scenario to contemplate, for the smaller rental communities, say 30 to 50 units, maybe the economic reaction is to convert them to condos? There is concern there are not enough condos at affordable prices. Would the adoption of rent control lower the attractiveness to investors for these communities, and lower the sales prices and justify conversion to condo. I hope we stir the debate, the emphasis of “think, before action makes sense”. Ron Throupe is an associate professor at the Burns School of Real Estate and Construction Management, Daniels College of Business. He is the co-author of the AAMD Vacancy and Rent Report. AsphAlt And tennis Court MAintenAnCe AsphAlt And tennis Court MAintenAnCe • inFrared repair • inFrared repair • cracksealing • cracksealing • sealcoating • sealcoating • tennis court resurFacing • tennis court resurFacing & maintenance & maintenance 303-423-4303 303-423-4303 www.coatingsinc.net www.coatingsinc.net www.aamdhq.org Free estimates | in business since 1970 Free estimates | in business since 1970 MAY 2019 TRENDS | 23