Attention St Paul Housing Providers – Rent Control Supporters Win Majority of Council Seats

If you’re a St Paul duplex owner with below-market-rate rent, pay attention.

Thanks to changes made by the current city council, you may apply to the city to increase rent to more than the 3% rent control cap.  It is important you do so soon.

While final results are still being tabulated, it appears candidates who support rent control won the vast majority of the seats. This may mean that once sworn in some of the amendments made by the current council may be rolled back.

If you have long-term tenants who are paying far below the going rate for their sized unit, it is especially important. While many smaller multifamily properties are owner-occupied, they are, nonetheless, considered income property. Therefore, should a time come when you choose to sell, the value of the property will be determined to some degree by the amount of revenue it generates.

If residents are paying substantially less than fair market rent, and changes to the current rent control ordinance preclude a would-be buyer from increasing rent, the result may be St Paul duplex sellers netting less for their property than they might have.

While none of us can be sure that will happen, recent history suggests it’s best for housing providers to be forward-thinking and proactive.

To apply for an exception to the 3% cap, CLICK HERE.