“You want a friend in Washington? Get a dog.” Harry S. Truman

I like pets. Grew up around them and enjoy having them around. That being said, the new “pet bill” (AB2216) authored by MATT HANEY of San Francisco could force you to take pets in your rental units, without additional deposits, whether you like it or not.

WHAT IS AB 2216? It is a bill, currently on the California Assembly Floor, which may be signed into law soon. This bill prohibits housing providers from INQUIRING on the rental application about pets that would be living in the unit. It also prohibits “pet rent” . Pet rent is defined as an additional security deposit in case of damage or even having another tenant, vendor or even you, as the owner being bitten by a dog, for instance. This is authored by the same Assemblyman who recently authored the legislation limiting security deposits to the amount of one month’s rent.

WHAT DO I HAVE TO LOSE? The potential for damage here is great. Many tenants are not good pet owners. They allow their pet to make constant noise, affecting the peace and quiet of other tenants. They also can damage the unit (including flooring and cabinets) far in excess of the amount of their security deposit. And the worst case could be if another person is bitten by a dog or other pet, resulting in potential severe physical damages and lawsuits. In most cases, those lawsuits would be against you- the housing provider. Even if you were to win, the attorney fees could be substantial. The risks for loss are great.

WHAT TO DO? I always recommend going to a potential tenant’s current place of residence. This of course, is no guarantee, but you can learn a lot and it can’t hurt. Additionally, check with your insurer to see what type of liability insurance will best protect you against potential problems. Lastly, VOTE! and familiarize yourself with politicians who seem to be consistently on the wrong side of your interests. As an apartment owner and a citizen, you need to stay vigilant when it comes to legislation that may be hazardous to your tenants, your vendors and yourself.

“The man who does not read has no advantage over the man who cannot read.” Mark Twain

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.