What Are Property Rights, Really?
Someone recently asked me a question that stopped me in my tracks — which doesn’t happen often. I was at a dinner party, speaking freely (as I often do) about how property rights are slowly being stripped away. For the first time, someone simply asked, "How?"
It caught me off guard. Most of the people I speak with have a solid grasp of real estate law — and this person did, too. But their question reminded me of something important: understanding the fundamentals myself isn’t enough if I can’t clearly explain them to others. If we want to protect what we have, we need to start by identifying exactly what’s being lost. That’s why I’m writing this newsletter — to ground us all in what property rights really mean, and what’s threatening them.
If this feels like review, by all means — stop here. But I’ve grown wary of the boiling frog syndrome. My passion for property rights didn’t start in a classroom — it was born the day I moved back to my home state of California after almost 6 years in Texas. For years, property management was just a paycheck. I was focused on leasing and sales — I loved the deal-making.
Returning to California changed everything. My role shifted from sales to litigation support and damage control. I found myself on calls with owners, trying to explain how a non-paying tenant was still occupying a unit after nearly a year — living rent-free the entire time — and yet, even after their COVID-era debt had been erased, a judge was still requiring the owner to remove the tenant and offer a financial payout. The logic was nonsense, and it felt criminal. And the idea that property owners aren’t being taken advantage of? That couldn’t be further from the truth.
Property rights are the bedrock of ownership. They’re not just legal terms — they represent freedom, security, and control. When you own property, you hold the right to:
Possession – to occupy and control the property
Control – to use and manage it as you see fit, within legal boundaries
Enjoyment – to benefit from it, so long as laws and rules aren’t violated
Exclusion – to keep others from entering or using it
Disposition – to transfer or sell it as you choose
These five elements make up what’s known as the "bundle of rights." Lose even one, and true ownership starts to slip away. And today, that bundle isn’t protected equally — especially when tenant protections enter the picture.
Since the passage of the Tenant Protection Act (AB 1482), California landlords have seen a measurable shift in their control over property. The law capped annual rent increases and imposed “just cause” eviction requirements, effectively weakening the right to set market-based rents and limiting the right to remove problematic tenants. While originally pitched as a balanced response to rising housing costs, TPA marked a clear erosion of two core property rights: control and exclusion. And the needle continues to move — with each legislative session adding new layers of compliance, reporting, and restrictions that further dilute what it means to truly own and operate your own asset.
Why These Rights Matter
Property creates leverage. It builds generational wealth. It gives people the power to choose — where to live, how to build, who to rent to, and what to do with what’s theirs.
Without strong property rights, ownership becomes symbolic — not sovereign.
How These Rights Are Being Stripped
In states like California, property rights are under steady assault. It’s not always loud. It’s death by a thousand policy cuts:
Rent control caps your income, even as costs rise.
Eviction bans force you to house non-paying tenants with little recourse.
Zoning and use restrictions tell you how, when, and if you can improve your property.
All of this quietly transfers control from owner to government.
This Isn’t Just Regulation — It’s a Redefinition of Ownership
The narrative has shifted. Property owners are being reframed as public service providers, not stakeholders.
The right to exclude? Weakened.
The right to control? Restricted.
The right to benefit? Capped or clawed back.
And yet — ownership still matters. Because when it gets hard, those who endure are the ones who build lasting wealth.
What You Can Do
Read the legislation (we’ll help you decode it)
Share this newsletter with someone who owns property
Don’t normalize the erosion of ownership — question it, challenge it, and prepare for what’s next. Ownership Theory is here to make sure you’re not blindsided. Because ownership without rights… isn’t ownership at all.
Disclaimer: This newsletter is for informational purposes only and not legal advice. Always consult with legal counsel for decisions related to your property.
