“For a man to know what he has when he had it, that is what makes him a fortunate man.” Ann Patchett

On June 6, 1978, California passed Proposition 13. This has been a godsend to residential and commercial property owners for over 45 years. It has kept our property taxes at a rate that is known. It has allowed housing providers to budget at least that part of their annual expenses. In a time of rent control, rent moratoriums and so many other obstacles to operating our properties, Proposition 13 has kept some control over our annual tax bill. Thank you Howard Jarvis.

OTHER STATES. Having owned multi unit properties in Nevada, I can attest to the differences from California. In California, properties are reassessed upon sale. After that, the tax bill itself can increase no more than 2 percent annually. My Nevada units could be reassessed whenever the assessor decided. That used to be the case in California for those who remember. Before Proposition 13, properties went no more than 5 years until reassessment. Texas, already with the sixth highest property taxes in the country a few years back, had proposed a jump that would have cost some as much as a 50 percent increase on their taxes. If you are in the multi unit housing business, there goes your cash flow. States with the highest taxes include New Jersey at 2.47%, Illinois at 2.23% and New Hampshire at 2.90%. according to Property Shark.

HOWARD JARVIS TAXPAYERS ASSOCIATION Named after the architect of Proposition 13, the HOWARD JARVIS TAXPAYERS ASSOCIATION keeps up on attempts

to dismantle or weaken parts of Proposition 13. They put out a free newsletter which will keep you up on pending legislation, legal cases and other efforts going forward.

I try to keep up on multi family issues with this newsletter, but I urge you to read the Jarvis newsletter as well. As a multi family owner and broker, I look forward to working together with you for a more profitable business for us all.

“Most people never run far enough on their first wind to find out they’ve got a second.” William James

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.