Have been stewing over the behavior of a few of our competitors, who skirt city law in order to drive up the returns they earn on deals.
All businesses are subject to some level of government regulation. For a variety of reasons, including the fact that the assets are immovable, the ownership of rental housing is probably the most heavily regulated of all.
Many owners and developers hate and fear this regulation. And they’re not crazy. Anyone who has spent time winding her way through the Kafkaesque maze of rules where LAHCID and LADBS overlap can be forgiven for getting emotional.
But we need to remember that our business exists at the sufferance of the public and their elected representatives. The regulatory environment can always get worse, particularly if bad actors cut corners and take advantage of people.
So, we need to conduct our business in a fair and above-board manner and comply with the existing regulations, while patiently making our case to the relevant decision-makers.
Cities will always need clean, safe, well-maintained rental housing. So, as long as the suppliers conduct ourselves in a reasonable manner, cities will continue to have an interest in allowing us to make a reasonable return on our investments.