“Small deeds done are better than great deeds planned. ” Peter Marshall

Are you planning your next rent raise? I like to raise rents the middle of January. Usually around the 15th of the month, I deliver my rent raise notices to my tenants. I normally give 45 days from my notice to have tenants begin paying the new amount. I am only required to give 30 days because nobody is getting more than 10% anymore, and if the raise is under 10% only 30 days is required. I like to do do it at the same time of the month, so that tenants are expecting it.

HOW MUCH CAN YOU RAISE IT? Don’t forget about the 7% raise in 2024 for Rent Stabilization Ordinance tenants, which is most of Los Angeles. It is always a great idea to check with the municipality of your building or your local Apartment Owners Association to make sure there are no last minute changes to local ordinances. There are several this year, including the recently failed Item 19, which would have held back the proposed raises in unincorporated areas of Los Angeles County.

DO I HAVE THE CORRECT FORMS? It is also a great idea to use the forms provided by your Apartment Owners Association to make sure they are the most current available. If you are using an older form, make certain it is still valid with no changes. Be sure to proofread the forms after you fill them out. I always deliver a copy to tenants and mail a copy as well. Keep copies for your files of the forms as well as your proof of service forms in case someone claims that they never received the notice. The notices are also good when you sell or refinance for your lender or as part of your due diligence for a prospective purchaser.

PROCRASTINATION This is one of those tasks that you should not put off. Every day you wait, you are costing yourself income. Additionally, the extra income will increase your NET OPERATING INCOME should you be refinancing or selling. Laws and regulations may change and your opportunity to increase your building income may not be there by the time you decide to increase your income.

“Strength does not come from winning. Your struggles develop your strengths. ” Arnold Schawarzenegger

What we at PRS PROPERTIES CAN DO. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparables in the area of your properties, so that you know what rental values are in your area. 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.