Letters to the Editor…

by on September 14, 2016

Years ago — 2001 — we sold our San Francisco residential rental property for a simple reason. The cost of maintenance and taxes increased faster than we were allowed to raise rents and the return on our investment continued to go down. And we had actually reduced rents when proposition 13 came into effect. Big mistake. We invested the money from the sale in property outside of San Francisco and now we’re okay..

One of the tenants — in a pair of flats — had been there for more than 20 years and was paying approximately 40% of the market rate. We had held the property because we thought at one point that we might eventually retire there — until we realized that by that time the tenant would be protected and we would not be able to afford to move him out and move ourselves into our own property. We sold to a couple who wanted to move in then. And they did.

And, yes, we are among those who wondered why we as responsible property owners who tried to maintain our property should be responsible for taking care of everybody. Our longest term tenant, whose income probably varied a lot, on average probably made more money than we did. Why were we subsidizing him?

A regular reader.

Don Langley

Filed under: Letters to the Editor