“Your big opportunity might be right where you are now.” Napoleon Hill

After years of lagging behind inflation, there is an opportunity next year that all property owners in Los Angeles and Los Angeles County cannot afford to miss. Tenants will be able to raise rents 7% in areas that have been victims of the Rent Stabilization Ordinance.

Some of those whose properties are in other areas of Southern California have been restricted by the statewide ordinance AB 1482. They have experienced rent control, but not as stringent as the RSO.

PREPARE YOUR TENANTS. Be sure to deliver your 30 day notice to your tenants by December 31, 2023 so that you will be able to raise your rents beginning on February 1 of 2024. It is also a good idea to send a letter in October or November letting tenants know that the rent raise notice is coming in December. This will give them time to move, in case they are choosing to look for a new apartment.

TIME IS MONEY. Don’t miss out on better income for your building and don’t forget that this will increase your property’s Gross Scheduled Income which will create additional value for your property if you decide to refinance or sell.

EVICTIONS. There are a number of new laws relating to evictions including notices to Los Angeles Housing Department (LAHD) prior to filing. There are also qualifications for some tenants who are over 62, disabled or have been residing in their units for 10 years. Those deemed to be PROTECTED TENANTS and QUALIFIED TENANTS can receive substantial relocation fees if they are required to move because of a government order, or if the unit is taken off the rental market among other “no fault” eviction situations. If they are being evicted for non-payment of rent or damaging the property, you should be in the “at fault” category, but it is best to make sure before you proceed.

REPRESENTATION In any case, I strongly advise you to go to an attorney experienced in evictions and not try to go it alone. There are so many mistakes you can make which will cause your case to be thrown out, you need to go to the experts. A good attorney will know the rules, give you peace of mind and even though you will be spending money, it’s tax deductible, so you will hopefully recoup some percentage of your expenses. Doing your eviction incorrectly could result in fines, penalties, and substantial loss of time and rental income as well.

Don’t procrastinate or forget to send your notices. Best of luck!

“The road to easy street goes through the sewer.” John Madden

What we at PRS PROPERTIES CAN DO. We try to keep pending and proposed legislation regarding multi family properties in our newsletters. We are always available to chat. We can supply you with rent and sale comparables in the area of your property. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

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.