“The elevator to success is out of order. You’ll have to use the stairs… one step at a time.” — Joe Girard

On the November 5th ballot, there will be the “Justice for Renters Act” brought to you by AIDS Healthcare foundation president, Michael Weinstein, the same person that funded Propositions 10 and 21 in recent years. The previous two measures were opposed by Governor Gavin Newsome calling them “Unnecessary and potentially hurting California housing.” Both measures were defeated.

COSTA HAWKINS This measure originally from 1995 exempts properties 15 years or newer, as well as condos and single family homes from rent control. It also allows a housing provider to rent a vacated house at market value. Many times, a property owner, after a long tenancy, has a unit which is well below market value. It could be from lack of rent raises or other reasons, but it is not uncommon. When the unit becomes vacant, there is a chance for the owner to rent it at market value. If we lose Costa Hawkins, this could be gone. In such a case, the cost of rehabbing the unit and the cost of vacancy during the period of finding a new renter, would now be added to the cost of a lower rental rate based on the amount the previous tenant was paying.

RENTAL SUPPLY The supply of rental housing in California is at a point of extreme shortage. Legislation such as this causes potential multi family investors who may be thinking of purchasing that first 4 unit building, to look elsewhere for an investment. It

additionally causes potential builders and lenders to shy away from multi family investing.. In this crucial time, we need a lot more housing, and a lot more investors to fuel the need for multi family properties.

YOUR VOTE COUNTS. In my opinion, anti housing organizations will continue to be roadblocks to the multifamily investing. By keeping apprised of the changes in the industry, including potential anti- housing legislation, and new rules for housing providers, we can do our best to keep up with our ever changing industry.

“Watch you actions, they become your habits. Watch your habits, they become your character.” Vince Lombardi

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.