“The future depends on what you do today.” Mahatma Ghandi

The “Rental Housability Program” was passed last week with a vote of 5-0. It affects unincorporated areas of Los Angeles County. There is a long list of affected areas but they include Altadena, East L.A., Topanga, parts of Whittier, and Torrance P.O. just to name a few.

WHAT IS REQUIRED The new law will require an inspection every 4 years (similar to City of LA , which has had this requirement since 1998.) Units will be checked for various items including, waterproofing, working plumbing and gas, appropriate water supply and pressure, operable ventilation systems, mold and pest infestation. Violations will be given a correction date and if the violation is not remedied before that date, fines can be involved and in some cases, the REAP (rent escrow account program) may be used.

FEES They will be similar to the City of LA program, which has a fee of $86. per unit. The City of LA allows for the landlord to pass on 50% of the initial fee to the tenant. If the issue is not resolved, and the property is put into the REAP program, the fees will be 137 dollars per unit per month. Under the REAP program, the tenant has the option of paying a reduced rent directly to the tenant( rent reduction will be10% to 50% of the current rent depending on the violation) or paying the monies to the Housing Department to be kept in an escrow account until the property is out of the REAP program.

WHAT TO DO Before you receive any notices of inspection, it is a good idea to inspect your units at least every 6 months. You may find a water leak that could save you money, or a dangerous gas leak. It also gives you a chance to see who is living in the unit, and to make sure that it is being properly maintained by the tenant. Checklists are great for this. There are a number of them online, but if you need one, please feel free to call or email us.

“Never say never because limits, like fears, are often just illusions.” Michael Jordan

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 comparable 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.