“Anyone who says the housing crisis can be resolved with one magic bullet or by the next election, isn’t being honest.” David Lammy

The most significant issue facing California housing providers in the upcoming election is Proposition 33, the so-called “Justice for Renters Act”. If this passes, the value of our rental properties is likely to be reduced greatly. Additionally, the ability to maintain our existing rental units in the face of rising expenses and increased regulations will be threatened.

PROPOSITION 33 The “Justice for Renters Act” will do a number of things to make the lives of housing providers more difficult. It will remove Costa Hawkins legislation which, among other things, exempts single family homes from rent control. Costa Hawkins also allows a housing provider to rent a unit, which has been vacated, at market rent. If Proposition 33 passes, we will be saddled with “vacancy control” wherein the new rent will be based on the previous rental amount, regardless of how far below market it may be and regardless of any new improvements to the unit.

BACKFIRE This legislation, if passed will most likely backfire on the people it is supposed to protect. Investors and developers will be even less interested in investing in rental properties, thus causing the needed supply of housing to diminish even further. Homeowners who were thinking about renting a room a or adding an ADU will be less motivated to do so because of potential legal problems if there is ever a dispute with a tenant. Developers will likely be more motivated to build single family homes as opposed to multi unit properties. In short, this proposed measure will most likely reduce the amount of available housing in California.

VOTE NO ON 33! The best thing you can do as a housing provider, is to vote NO ON 33! Don’t let this bill exacerbate what is already a critical shortage of housing supply. This will not only affect housing for Californians everywhere, it could have a detrimental effect on the value of your assets.

“Suppose you are an idiot and suppose you are a member of Congress; but I repeat myself.” 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.