People ask if house hacking is still a realistic and viable option in the Bay Area given our high price points and continued move towards tenants rights and rent control.
We believe wholeheartedly that it is. It may not result in ‘free’ living right away, but we believe it’s far better than the alternative. Our clients who end up in successful house hack situations keep their monthly housing expenses far lower than if they had continued to rent or bought a single family home. Add that to the long term benefits of owning real estate, and these folks are in very good shape.
As far as the expansion of rent control and other tenants rights goes, we believe house hackers need to be educated on these things so they can make an informed decision on whether or not to move forward. Being a landlord, especially in this state, carries its share of risks, both immediately–such as unexpected maintenance costs, and long term–such as a changing political climate that can impact your rights as a property owner.
The current political climate is moving towards expansions of tenants rights, and thus contracting the rights of landlords. There is now rent control and just cause eviction protections across the state of California. Understanding how these state laws, as well as applicable city and local ordinances, impact landlords is critical.
The state law generally exempts house hackers from the state’s rent control. Though local ordinances will still apply. For example, in Oakland, house hackers–specifically an owner-occupant of a duplex or triplex–is NOT exempt from the city’s rent control ordinances. Meaning that Oakland’s rent control will apply.
Again, each jurisdiction may have its own set of rules, ordinances, and exemptions. Before jumping into a house hack, make sure you understand your area’s laws. Want some expert (and free) advice? Contact us today!
