Over the years, renting in Los Angeles keeps getting more expensive. And today, a small crowd rallied in Santa Monica to protest in front of the Blackstone Group’s offices, the largest landlord in the United States. Kimberly Aguirre reports.
300,000. This is how many rental units Blackstone owns and manages over the country. And after buying large amounts of rental properties, especially in San Diego, the corporate group raised the rent of some units up to 43-64%. The group also proceeded to over one thousands evictions in 2022, in some of which tenants only owed one month of rent according to a report from the Private Equity Stakeholder Project and Alliance of Californians for Community Empowerment.
For Kelli Lloyd, who came to protest in front of the company offices, the corporate landlords use the laws such as AB 1482 for their advantage.
LLOYD: They’ve been able to exploit the law to get tenants out with using no fault evictions, something like, you know, substantial renovation. In many cases, these renovations don’t take place or they’re not substantial.
Armed with vast legal resources, companies then raise rent by almost half with few challenges. A practice that sometimes forces community members to leave neighborhoods they have spent generations in.
Abdullah Muhammad, a longtime resident of South Central, believes that California Senate Bill 567 can protect tenants.
MUHAMMAD: What we’re trying to do with SB 567 is put a cap on how high they can raise the rent.
SB 567 tailors rent increases to max out at 5% per year. So, the bill aims to sew up the loophole in AB 1482, hemming corporation’s pockets so they don’t get even deeper. More rent control may also let the pressure out of LA’s burgeoning housing crisis.
LLOYD: 70% of Los Angeles housing is owned by corporate landlords. This is contributing to the homelessness crisis in ways that are unimaginable.
Increased rent has been linked to increased homelessness. A 2020 study by the Government Accountability Office showed that increasing median rent by $100 was associated with about a 10% increase in homelessness. This stark statistic highlights the precariousness of many American’s housing insecurity, not just Californians. However, these protests represent an important first stitch in weaving a more affordable housing market.
Blackstone sees the situation very differently. A Blackstone spokesperson sent Annenberg Media the following:
“The report and statements are riddled with inaccuracies and mischaracterizations. We believe we have the most favorable resident policies among any large landlord in the U.S., including not making a single non-payment eviction for over two years during COVID. We operate in accordance with California’s rent stabilization laws and are investing $100 million to make these communities better places to live.”