St Paul Council President Talks Vacancy Decontrol

St Paul City Council President Mitra Jalali

In a recent interview with Finance and Commerce magazine, St Paul City Council President Mitra Jalali stated her opposition to the vacancy decontrol policy where housing providers can raise rents beyond the rate of inflation between tenants.

On the surface, this doesn’t sound like a big deal.

To me, however, it is the most egregious part of the city’s original rent control policy, and the one that does the most harm.

After decades of being housing providers, many long-term owners grow tired of the painting, cleaning, fixing and improving that goes on between tenants. Those who fail to pay rent on time or at all, cause damage, or friction with other residents can take an even greater toll.

So when a long-term owner gets a tenant who pays rent on time and is respectful of property and others, they tend to try to keep them by not raising rent.

By eliminating vacancy decontrol, landlords, or anyone they sold their property to would not be able to apply for an exception to the 3% cap, even when that below-market rent tenant died or moved out.

Jalal stated, “I am very concerned it (vacancy decontrol) incentivizes a landlord to essentially get a renter out (of a unit) through whatever means they can so that once it’s vacated, they can increase the rent. I think that goes against the core point of the policy.”

If you’re a St Paul housing provider with long-term tenants you like and below market rents, it may be time to reconsider your position. Missing out on a few hundred dollars may not seem like that big of deal. However, those lost hundreds in revenue can turn into tens of thousands in property value when it comes time to sell.

To read the interview in its entirety, CLICK HERE.