” In the middle of difficulty lies opportunity.” Albert Einstein

Today we join with property owners, managers, brokers, lenders and the Apartment Association in asking you and your family and friends to vote “no” on the Justice for Rents bill November of next year. This would effectively end the Costa Hawkins legislation, which has been around since 1995.

WHAT IS COSTA HAWKINS This legislation, approved in 1995, has given rental property owners as well as renters a more moderate set of rules regarding rent control than what is currently being proposed. Under Costa Hawkins, most single family homes, and condominiums, unless owned by a REIT (real estate investment trust) are not subject to rent control. The bill also exempts properties built after 1995. It also allows for vacancy decontrol, which is to say that after a tenant moves out, the property can be rented to a new tenant for market value.

CHIPPING AWAY. There have been a number of attempts to chip away at the provisions, and the “Justice for Renters” legislation, which will be on the ballot in 2024 is the latest. AB 1482 which we has been in effect since January of 2020 has capped rental increases for the state, and many municipalities have created even further restrictions of rent raises.

WHAT IS AT STAKE. With so many rental housing providers being “mom and pop” (1-4 units) and so many smaller multi unit buildings, with 10 units or less owned by individuals, we need to have a situation where housing can be provided, for tenants and a small investor can make a decent return. This is after risking a large down payment, maintaining the property, managing the tenants (through pandemics, evictions and government required regulations and modifications). We need for there to be a reason to risk time, money and so much more for the chance of a fair return years later. Many will pass on such an investment for something more passive like stocks, but there is a need for good rental housing. Creating additional hurdles for small investors is a losing strategy.

“There is only one way to succeed in anything and that is to give it everything.” Vince Lombardi

What we at PRS PROPERTIES CAN DO. We can look at your building as the investment property that it is. We can recommend vendors if needed and we can even look over any code violation notices. We can supply you with rent and sale comparables in the area of your property, so that you know what the true value of your rental unit should be, so that you can get it rented right away. We can look at potential purchases that you may be interested in to make the property more desirable.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.