“Sometimes, staying put, going sideways, or moving backward is actually the best way to eliminate what blocks or impedes your path.” Ryan Holiday

It appears that based on recent reporting, tenants are more likely to stay as renters as opposed to buying their own homes.

WHY THE CHANGE? With the current higher interest rates and higher housing prices, many potential home owners are opting to rent for the long term. The California Association of Realtors projects that the 2024 median price for single family homes will be 860K , up from 810K in 2023. This makes qualifying difficult and when you include taxes insurance and maintenance, a lot of people will be out of the market.

OTHER CHANGES With more people working from home, a lot of renters are looking for more amenities in their rental properties. Things such as full luxury spas and atriums, podcast facilities all the way to pickleball courts are some of the things renters are requesting and larger multi family providers are supplying.

MY UNITS ARE BASIC. Even though there is demand for newer buildings with amazing amenities, the mom and pop apartments will still be affected. Not everyone wants or needs the very latest things and home affordability affects everyone, so your tenants and mine will most likely stay longer. With evictions much more difficult and more expensive, a good screening is more important than ever. You will probably have less turnover, so choose wisely.

NEW BUILDINGS Chase Bank expects over 11,000 apartment units to be built in the Los Angeles area in 2024. They believe that our economy will be strong driven by entertainment, healthcare and tech sectors. I believe there will be competition, but the demand for bread and butter buildings will still be very healthy. If you maintain your property and choose good tenants, I feel that your investment should be at least as secure as in the recent past.

I have always believed that the beauty of multi family properties is that everyone has to live somewhere, and that will always be a priority.

“I’d rather have a lot of talent and a little experience than a lot of experience and a little talent.” John Wooden

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business. 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 are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also 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.