“No matter what people tell you, words and ideas can change the world.” Robin Williams

With the “JUSTICE FOR RENTERS ACT” on the November election, The Costa-Hawkins protections for housing providers, including vacancy control, may soon be gone. The JFRA would strengthen rent control in California and include single family homes and condos, which were previously exempt and potentially threaten the value of our multi family investments.

WHAT IS VACANCY CONTROL? When a unit is under rent control that includes “vacancy control”, the owner is limited or prohibited from increasing rent to a new tenant. This would be true even if the tenant vacated voluntarily, or is evicted. Costa-Hawkins currently prohibits vacancy control as a part of any California rent control ordinance.

HOW DID WE GET HERE? Rent control was introduced in Los Angeles in 1942. The demand for goods and services for the war effort of WW2 caused the government to enact the EMERGENCY PRICE CONTROL ACT. This limited the price on many essential commodities including rent. The office of Price Administration (OPA) was set up to police landlords. A 1945 drive prosecuted 117 Los Angeles landlords for failure to register for the OPA. With the influx of new residents much more new housing was needed. In 1945, the Apartment Owners Association began an organized decontrol campaign. In 1950, rent control was voted down in Los Angeles, Thus began a housing boom which reverberated all through Southern California, although some cities like Santa Monica have enacted newer versions of rent control. Costa -Hawkins being passed in 1995, helping to clarify the way rent control, where it exists, is done. We now seem to be moving back in time to an era when rent control is the norm, and the housing shortage is again very real. As I see it, now is the time for us all to move forward, not step back.

WHAT WOULD BE THE EFFECTS OF VACANCY CONTROL? Vacancy control would severely decrease demand for multi unit investments with buyers and with builders which would impact our demand for new housing which is already critical. When this is combined with adding the same requirements to single family homes, condos and recently built properties, it becomes even more of an issue.

WHAT SHOULD I DO? Vote NO on the JUSTICE FOR RENTERS ACT on the November 2024 election. Join multi family owners, managers, realtors and developers as well as your Apartment Owners Association in working to defeat this measure. We need more

multi family investments, not less and we need new housing, so protect your family’s investment in housing and help us all to defeat this ill-conceived legislation.

“Life is like a bicycle. To keep your balance, you must keep moving.” Albert Einstein

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.