Fishers’ 10% rental cap sets dangerous precedent

By STEVE LADIG
Guest Columnist

I must sound the alarm about Mayor Fadness’ recently enacted 10 percent rental cap ordinance, which rushed through City Council with concerning implications for Fishers homeowners and renters alike.

Mayor Fadness had significant support for the Fishers 10 percent rental cap mostly due to the fact that he failed to communicate to the residents how the cap would adversely affect its residents. When the administration controls the information and narrative, silences the opposition, and discredits the opposition as “special interest groups,” it is easy for them to control the constituents in the form of going along with their policies without doing the proper due diligence.

At Monday’s Council meeting, citizens filled the chamber to capacity – with some relegated to standing in hallways – yet remarkably, public comment was cut off halfway through the line of speakers! For the first time in memory, Fishers residents who took time from their evenings to participate in local government were silenced. Even more concerning, the ordinance wasn’t read aloud, with only amendments hastily summarized before the unanimous rubber-stamp approval.

Not a single Council member posed even one question about this sweeping property rights restriction. This despite explicit warnings from MIBOR and comprehensive research I provided city officials over two months ago outlining the economic fallout this ordinance will trigger.

Make no mistake: this cap will enrich Wall Street investors and myself while hurting everyday Fishers residents. Neighborhoods with higher percentages of rentals will see property values suffer as the buyer pool shrinks dramatically. Meanwhile, renters will face skyrocketing rates as rental supply dwindles – basic economics that the Mayor conveniently ignored.

When concerned citizens requested a town hall to discuss these serious issues, Mayor Fadness opted instead for a virtual meeting where questions were carefully filtered. My detailed inquiries? Discarded and ignored. It appears the administration’s approach is “my way or the highway.”

For homeowners in rental-heavy neighborhoods (especially those over 30 percent rentals), you face the greatest risk of property value decline. If you purchased before 2020 with a low interest rate, you might consider turning your property into a rental before the Dec. 31, 2025, grandfather deadline – the numbers show an average 60 percent annual return is possible.

Renters should immediately pursue long-term lease agreements with landlords before rates inevitably climb due to artificially constrained supply.

One resident at the meeting explained she had planned to convert her home to a rental in coming years to supplement her income. Mayor Fadness has now eliminated that option unless she acts before the end of this year.

I joined forces with residents across the political spectrum on this issue because we recognize when property rights are at stake, we must stand together. The State of Indiana is now involved, and class action lawsuits are being prepared – as all Fishers residents stand to be affected by this short-sighted ordinance.

I’ll continue fighting for our community’s economic welfare, even as the Mayor refuses to acknowledge the damaging consequences his policy will bring.

Steve Ladig, a 33-year resident of Fishers, is the Managing Broker of Ladig Realty LLC.