Reform the San Diego rental system to better serve renters
The Issue
High rent increases, unfair leases, and widespread quality and service issues are hurting San Diego renters, and reforms are needed to protect the quality of life of San Diego residents. We petition our City Council and Mayor to immediately form a task force to study the rental system with the goal of improving it for tenants.
San Diego is experiencing an apartment rental crisis that is negatively impacting residents’ standard of living:
Renters pay 44% of their income in order to afford rent, an all-time record high and much higher than its 33% historical average[1], and making it the fourth highest metro area in the country.[2]
Rents increased 25% over the past decade and are expected to increase by 19% in just the next 5 years. In 2015, they have already risen 9%. [3]
It is the largest city in California that does not have some form of rent control/stabilization.[4]
In short, renters, who make up over 50% of San Diego households,[5] are being squeezed and are seeing their standard of living decrease. While rents continue to increase 5-9% a year, household income is rising only less than 1% a year and has even decreased a total of 6% since 2009.[6] Meanwhile, home ownership continues to be out of reach for most; San Diego was recently labeled the least affordable city to buy a home in America by Realtor.com[7] and only 25% of households can afford a median priced home.[8]
On top of rising rental rates eroding renters’ standard of living, their quality of life is also suffering. With the high demand and limited supply of rentals, renters are at the mercy of landlords as they are seen as easily replaceable. Particularly in this environment, landlords craft lease terms clearly favorable to them, and they have insufficient incentive to uphold quality or customer service standards. The quality of rentals is falling noticeably behind the rising prices, and renters experience stress and instability caused by dealing with issues, significant increases of their rent, frequent moves to keep housing expenses under control, and being subjected to rental terms that consistently favor the landlord.
The San Diego economy is also negatively impacted since households have less money for other purchases as more of their income is spent on housing which goes to financial institutions out of town.[9] Job productivity is hurt by workers having to frequently move and deal with housing issues. Businesses are struggling to attract and retain talent due to the high cost of living in San Diego, and their profits are reduced because they are forced to pay employees the higher salaries necessary to live here.[10] Some businesses are even relocating to other areas of the country due to the high costs.[11]
Unlike other sectors of our economy based on a pure free market model and supply-and-demand economics, the housing sector is unique and requires careful attention to ensure it is best serving the people of San Diego. Housing is a necessity with limited supply, it is central to a person’s quality of life, and the burden for the tenant of changing one’s home provides a clear advantage to one party (the landlord), especially in the San Diego market with a supply-demand imbalance and a low vacancy rate.[12]
The San Diego County Apartment Association has used its deep pockets and team of lobbyists to effectively represent the interests of landlords to our local government, and it is time for us, the people of San Diego, to call on our representatives to advocate for our quality of life.
Issues that should be studied and addressed are listed below. This list is not exhaustive, and this petition is not primarily focused on specific solutions (policy, technology, or otherwise). Rather, the main objective is to raise awareness about the issues and begin a constructive dialogue for determining the best solutions to improve the San Diego rental system. Models to learn from (both their successes and shortcomings) include the District of Columbia Tenant Bill of Rights[13], the City & County of San Francisco Rent Board[14], and the City of Berlin Rental Price Break.[14b] It should also be noted that some of these listed issues/solutions may be more applicable to large apartment complexes than individual landlords who oversee only a single or small amount of rental units.
1) Issue: Rapidly Rising Rents
Possible solutions:
- Rent Control/Stabilization
- More smart development (e.g. sustainable, higher density)
-
Restrictions on vacation rentals, which are reducing supply for residents
- More affordable housing
- Landlord must make recent rent increase information available to prospective tenants
2) Issue: Inadequate Building Codes and Enforcement
A February 2015 investigation by KPBS exposed multiple shortcomings with the current system in San Diego for ensuring basic living standards for tenants, which is particularly hurting the more vulnerable members of our city.[13]
Furthermore, current code generally only relates to minimum health and safety standards, not quality. Tenants too often experience poor quality construction (e.g., minimal sound insulation, faulty plumbing, repair-prone fixtures/etc.), which can be challenging to identify during the rental search. The current system does not adequately hold the property owner accountable and provides little incentive for them to not cut corners during construction or renovation.
Possible solutions:
- Stricter laws and better enforcement by San Diego government
- Increase in code standards to include Quality measures, such as sound insulation and floor stability, and mandatory third-party inspection reports made available to prospective tenants
- Requirement that prospective tenants and current residents are informed of housing violations
3) Issue: Burdensome Long Term Lease Renewals
After the initial lease (typically 1 year), requiring the tenant to sign another long-term lease or pay significantly more with a monthly lease is unreasonable. Through the signing of yet another long-term lease, the tenant is restricted to move out only on a particular day each year or pay penalties, sometimes as much as 2 months rent or until the unit is re-rented (at a price decided by the landlord). This undue constraint on when the tenant moves out does not reflect the reality that tenants often move due to circumstances outside their control, including job transfers or unemployment, illness of family members, etc.
Also, the reality of both the rental and buying market in San Diego where inventory is low is that the renter/buyer usually must be ready to move in to a new place (or at least start paying for it) immediately or within a couple of weeks. The 30 day move-out notice required by most landlords means that most renters are stuck with up to a month of double-rent upon move-out, or much more if it doesn’t happen to be the arbitrary lease end date that can be up to a year away. Paying double rent, or a steep penalty, is not fair for residents when they are ready to leave after they have completed their initial lease. It also makes moving much more expensive and forces residents to accept rent increases.
Possible solutions:
- At conclusion of lease, require landlords to give tenants the option to continue on a monthly lease at a similar price as the initial lease (i.e. no premium).
- After the initial lease, the tenant should only be required to give an advance notice of not more than 2 weeks to move out without penalty, or at least the penalty should be more reasonable and significantly less than the actual rent.
4) Issue: Intrusive Construction Projects
When the landlord executes construction projects, such as the repair or renovation of units, this can greatly reduce the livability of nearby apartments, especially for those who work or live at home during business hours.
Possible solutions:
- Residents must be properly notified of upcoming construction projects, including before signing a lease, and should be entitled to rent reduction during the period of construction if it interferes with their quiet enjoyment of their home.
5) Issue: Poor Neighbor Conflict Resolution
Landlords often do not adequately address complaints by one neighbor about another. Especially in high-density apartment complexes with often mediocre construction, complaints about noise, smoking, and other nuisances are common. Although it is the responsibility of the apartment management to resolve such complaints, too often they do not address issues in a timely manner and provide no evidence of their alleged efforts. This not only leads to stress and a lower quality of housing for residents, but it can result in dangerous escalation between neighbors.
Possible solutions:
- Management must provide resident with physical proof and regular, timely updates on efforts to resolve the situation.
- A third party service to professionally handle neighbor complaints.
Please remain subscribed to Change.org e-mails related to this petition to learn about updates regarding this petition and how we all can ensure that change does indeed happen. Your e-mail and address is not shared with the petition author or recipient. If you are interested in being contacted directly about how you can help, please e-mail RentersSanDiego@gmail.com.
Please also share your stories and comments in the section below! Your full name will only be displayed below if you choose to leave a comment.
Check out our other petitions advocating for San Diego renters:
Other actions you can take include:
- Write a review (e.g., Yelp) about your rental
- Talk to your neighbors, and consider gathering signatures to deal with a common problem at your apartment complex
- Share this petition!
- Contact your representative
- Understand and stand up for your legal rights as a tenant
Footnotes
[1] http://www.zillow.com/research/q2-2015-rent-mortgage-affordability-10268/
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCoQFjAB&url=http%3A%2F%2Fwww.census.gov%2Fhousing%2Fcensus%2Fpublications%2Fwho-can-afford.pdf&ei=UlIQVdGzErHasATYkoLwBA&usg=AFQjCNFDd3D_PsC2ZfoK80Dt1Lg-QeNY7A&sig2=F-EP3P-e1c6gPxRVp5EhzQ&bvm=bv.88528373,d.cWc
[2] http://zillow.mediaroom.com/2014-08-21-Only-a-Dozen-Large-Metro-Housing-Markets-Feature-Both-Affordable-For-Sale-Housing-and-Affordable-Rental-Housing
[3] http://www.utsandiego.com/news/2014/sep/18/rents-housing-supply-downtown-units-forrent/
http://www.sandiegouniontribune.com/news/2015/aug/15/real-estate-housing-corelogic-zillow-midyear/
[4] http://www.dca.ca.gov/publications/landlordbook/appendix2.shtml
http://www.ci.berkeley.ca.us/Rent_Stabilization_Board/Home/Other_Rent_Control_Jurisdictions.aspx
[5]http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_13_1YR_B25106&prodType=table
[6] http://www.kpbs.org/news/2014/sep/18/san-diegans-income-still-below-great-recession-lev/
[7] http://www.realtor.com/news/least-affordable-cities/
[8] http://www.kpbs.org/news/2015/apr/16/rising-housing-prices-stagnating-wages-are-harming/
[9] http://www.kpbs.org/news/2015/apr/16/rising-housing-prices-stagnating-wages-are-harming/
[10] http://www.voiceofsandiego.org/2015/01/21/the-eternal-question-for-sd-businesses-should-i-pay-or-should-i-go/
[11] http://www.voiceofsandiego.org/2015/01/21/the-eternal-question-for-sd-businesses-should-i-pay-or-should-i-go/
[12] http://www.marcusmillichap.com/research/researchreports/reports/2015/01/08/san-diego-apartment-research-report
http://www.utsandiego.com/news/2015/jan/13/apartments-rent-vacancy/
[13]http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCEQFjAA&url=http%3A%2F%2Fota.dc.gov%2Fsites%2Fdefault%2Ffiles%2Fdc%2Fsites%2Fota%2Fpublication%2Fattachments%2F2009_10_27_OTA_DC_Tenant_Bill_of_Rights_FOR_SH_COMMENT.pdf&ei=7U4QVeeBI8KvggSzi4HwAw&usg=AFQjCNGfjRWQQsRKVA159AZeg7vKUwvqvg&sig2=KFgUWCvSWyvSev6OfQPWgw&bvm=bv.89060397,d.eXY
[14] http://www.sfrb.org/
[14b] http://www.citylab.com/housing/2015/07/berlins-brand-new-rent-control-laws-are-already-working/398087/
[15] http://www.kpbs.org/news/2015/feb/19/whack-mole-city-enforcement-keeps-problem-landlord/
The Issue
High rent increases, unfair leases, and widespread quality and service issues are hurting San Diego renters, and reforms are needed to protect the quality of life of San Diego residents. We petition our City Council and Mayor to immediately form a task force to study the rental system with the goal of improving it for tenants.
San Diego is experiencing an apartment rental crisis that is negatively impacting residents’ standard of living:
Renters pay 44% of their income in order to afford rent, an all-time record high and much higher than its 33% historical average[1], and making it the fourth highest metro area in the country.[2]
Rents increased 25% over the past decade and are expected to increase by 19% in just the next 5 years. In 2015, they have already risen 9%. [3]
It is the largest city in California that does not have some form of rent control/stabilization.[4]
In short, renters, who make up over 50% of San Diego households,[5] are being squeezed and are seeing their standard of living decrease. While rents continue to increase 5-9% a year, household income is rising only less than 1% a year and has even decreased a total of 6% since 2009.[6] Meanwhile, home ownership continues to be out of reach for most; San Diego was recently labeled the least affordable city to buy a home in America by Realtor.com[7] and only 25% of households can afford a median priced home.[8]
On top of rising rental rates eroding renters’ standard of living, their quality of life is also suffering. With the high demand and limited supply of rentals, renters are at the mercy of landlords as they are seen as easily replaceable. Particularly in this environment, landlords craft lease terms clearly favorable to them, and they have insufficient incentive to uphold quality or customer service standards. The quality of rentals is falling noticeably behind the rising prices, and renters experience stress and instability caused by dealing with issues, significant increases of their rent, frequent moves to keep housing expenses under control, and being subjected to rental terms that consistently favor the landlord.
The San Diego economy is also negatively impacted since households have less money for other purchases as more of their income is spent on housing which goes to financial institutions out of town.[9] Job productivity is hurt by workers having to frequently move and deal with housing issues. Businesses are struggling to attract and retain talent due to the high cost of living in San Diego, and their profits are reduced because they are forced to pay employees the higher salaries necessary to live here.[10] Some businesses are even relocating to other areas of the country due to the high costs.[11]
Unlike other sectors of our economy based on a pure free market model and supply-and-demand economics, the housing sector is unique and requires careful attention to ensure it is best serving the people of San Diego. Housing is a necessity with limited supply, it is central to a person’s quality of life, and the burden for the tenant of changing one’s home provides a clear advantage to one party (the landlord), especially in the San Diego market with a supply-demand imbalance and a low vacancy rate.[12]
The San Diego County Apartment Association has used its deep pockets and team of lobbyists to effectively represent the interests of landlords to our local government, and it is time for us, the people of San Diego, to call on our representatives to advocate for our quality of life.
Issues that should be studied and addressed are listed below. This list is not exhaustive, and this petition is not primarily focused on specific solutions (policy, technology, or otherwise). Rather, the main objective is to raise awareness about the issues and begin a constructive dialogue for determining the best solutions to improve the San Diego rental system. Models to learn from (both their successes and shortcomings) include the District of Columbia Tenant Bill of Rights[13], the City & County of San Francisco Rent Board[14], and the City of Berlin Rental Price Break.[14b] It should also be noted that some of these listed issues/solutions may be more applicable to large apartment complexes than individual landlords who oversee only a single or small amount of rental units.
1) Issue: Rapidly Rising Rents
Possible solutions:
- Rent Control/Stabilization
- More smart development (e.g. sustainable, higher density)
-
Restrictions on vacation rentals, which are reducing supply for residents
- More affordable housing
- Landlord must make recent rent increase information available to prospective tenants
2) Issue: Inadequate Building Codes and Enforcement
A February 2015 investigation by KPBS exposed multiple shortcomings with the current system in San Diego for ensuring basic living standards for tenants, which is particularly hurting the more vulnerable members of our city.[13]
Furthermore, current code generally only relates to minimum health and safety standards, not quality. Tenants too often experience poor quality construction (e.g., minimal sound insulation, faulty plumbing, repair-prone fixtures/etc.), which can be challenging to identify during the rental search. The current system does not adequately hold the property owner accountable and provides little incentive for them to not cut corners during construction or renovation.
Possible solutions:
- Stricter laws and better enforcement by San Diego government
- Increase in code standards to include Quality measures, such as sound insulation and floor stability, and mandatory third-party inspection reports made available to prospective tenants
- Requirement that prospective tenants and current residents are informed of housing violations
3) Issue: Burdensome Long Term Lease Renewals
After the initial lease (typically 1 year), requiring the tenant to sign another long-term lease or pay significantly more with a monthly lease is unreasonable. Through the signing of yet another long-term lease, the tenant is restricted to move out only on a particular day each year or pay penalties, sometimes as much as 2 months rent or until the unit is re-rented (at a price decided by the landlord). This undue constraint on when the tenant moves out does not reflect the reality that tenants often move due to circumstances outside their control, including job transfers or unemployment, illness of family members, etc.
Also, the reality of both the rental and buying market in San Diego where inventory is low is that the renter/buyer usually must be ready to move in to a new place (or at least start paying for it) immediately or within a couple of weeks. The 30 day move-out notice required by most landlords means that most renters are stuck with up to a month of double-rent upon move-out, or much more if it doesn’t happen to be the arbitrary lease end date that can be up to a year away. Paying double rent, or a steep penalty, is not fair for residents when they are ready to leave after they have completed their initial lease. It also makes moving much more expensive and forces residents to accept rent increases.
Possible solutions:
- At conclusion of lease, require landlords to give tenants the option to continue on a monthly lease at a similar price as the initial lease (i.e. no premium).
- After the initial lease, the tenant should only be required to give an advance notice of not more than 2 weeks to move out without penalty, or at least the penalty should be more reasonable and significantly less than the actual rent.
4) Issue: Intrusive Construction Projects
When the landlord executes construction projects, such as the repair or renovation of units, this can greatly reduce the livability of nearby apartments, especially for those who work or live at home during business hours.
Possible solutions:
- Residents must be properly notified of upcoming construction projects, including before signing a lease, and should be entitled to rent reduction during the period of construction if it interferes with their quiet enjoyment of their home.
5) Issue: Poor Neighbor Conflict Resolution
Landlords often do not adequately address complaints by one neighbor about another. Especially in high-density apartment complexes with often mediocre construction, complaints about noise, smoking, and other nuisances are common. Although it is the responsibility of the apartment management to resolve such complaints, too often they do not address issues in a timely manner and provide no evidence of their alleged efforts. This not only leads to stress and a lower quality of housing for residents, but it can result in dangerous escalation between neighbors.
Possible solutions:
- Management must provide resident with physical proof and regular, timely updates on efforts to resolve the situation.
- A third party service to professionally handle neighbor complaints.
Please remain subscribed to Change.org e-mails related to this petition to learn about updates regarding this petition and how we all can ensure that change does indeed happen. Your e-mail and address is not shared with the petition author or recipient. If you are interested in being contacted directly about how you can help, please e-mail RentersSanDiego@gmail.com.
Please also share your stories and comments in the section below! Your full name will only be displayed below if you choose to leave a comment.
Check out our other petitions advocating for San Diego renters:
Other actions you can take include:
- Write a review (e.g., Yelp) about your rental
- Talk to your neighbors, and consider gathering signatures to deal with a common problem at your apartment complex
- Share this petition!
- Contact your representative
- Understand and stand up for your legal rights as a tenant
Footnotes
[1] http://www.zillow.com/research/q2-2015-rent-mortgage-affordability-10268/
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCoQFjAB&url=http%3A%2F%2Fwww.census.gov%2Fhousing%2Fcensus%2Fpublications%2Fwho-can-afford.pdf&ei=UlIQVdGzErHasATYkoLwBA&usg=AFQjCNFDd3D_PsC2ZfoK80Dt1Lg-QeNY7A&sig2=F-EP3P-e1c6gPxRVp5EhzQ&bvm=bv.88528373,d.cWc
[2] http://zillow.mediaroom.com/2014-08-21-Only-a-Dozen-Large-Metro-Housing-Markets-Feature-Both-Affordable-For-Sale-Housing-and-Affordable-Rental-Housing
[3] http://www.utsandiego.com/news/2014/sep/18/rents-housing-supply-downtown-units-forrent/
http://www.sandiegouniontribune.com/news/2015/aug/15/real-estate-housing-corelogic-zillow-midyear/
[4] http://www.dca.ca.gov/publications/landlordbook/appendix2.shtml
http://www.ci.berkeley.ca.us/Rent_Stabilization_Board/Home/Other_Rent_Control_Jurisdictions.aspx
[5]http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_13_1YR_B25106&prodType=table
[6] http://www.kpbs.org/news/2014/sep/18/san-diegans-income-still-below-great-recession-lev/
[7] http://www.realtor.com/news/least-affordable-cities/
[8] http://www.kpbs.org/news/2015/apr/16/rising-housing-prices-stagnating-wages-are-harming/
[9] http://www.kpbs.org/news/2015/apr/16/rising-housing-prices-stagnating-wages-are-harming/
[10] http://www.voiceofsandiego.org/2015/01/21/the-eternal-question-for-sd-businesses-should-i-pay-or-should-i-go/
[11] http://www.voiceofsandiego.org/2015/01/21/the-eternal-question-for-sd-businesses-should-i-pay-or-should-i-go/
[12] http://www.marcusmillichap.com/research/researchreports/reports/2015/01/08/san-diego-apartment-research-report
http://www.utsandiego.com/news/2015/jan/13/apartments-rent-vacancy/
[13]http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCEQFjAA&url=http%3A%2F%2Fota.dc.gov%2Fsites%2Fdefault%2Ffiles%2Fdc%2Fsites%2Fota%2Fpublication%2Fattachments%2F2009_10_27_OTA_DC_Tenant_Bill_of_Rights_FOR_SH_COMMENT.pdf&ei=7U4QVeeBI8KvggSzi4HwAw&usg=AFQjCNGfjRWQQsRKVA159AZeg7vKUwvqvg&sig2=KFgUWCvSWyvSev6OfQPWgw&bvm=bv.89060397,d.eXY
[14] http://www.sfrb.org/
[14b] http://www.citylab.com/housing/2015/07/berlins-brand-new-rent-control-laws-are-already-working/398087/
[15] http://www.kpbs.org/news/2015/feb/19/whack-mole-city-enforcement-keeps-problem-landlord/
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Petition created on April 3, 2015