“If you think compliance is expensive, try non-compliance.” Paul McNulty

As apartment owners, the Fair Employment and Housing Act (FEHA) or the Unruh Act prohibits discrimination against protected classes of individuals with regard to housing and employment. We should all be mindful of this act.

WHAT IS COVERED? The obvious things such as race, color, sex, religion and national origin. Also familial status (living with children under 18, pregnant women and people with legal custody of a minor, for instance.) Additionally, there are other such items as citizenship, gender identity, sexual orientation and primary language.

TYPES COVERED There are exemptions for owner occupied single family homes, where the owner rents to only one individual. Another exemption would be private clubs which limit membership to same sex roommates, for instance. In most cases, your multi family units would not qualify for an exemption. I say this as a layman, I am not an attorney. The best idea is to check with your real estate attorney to make sure you are in compliance with the law.

WHEN DOES THIS COME UP? This legislation comes up in the sale or rental of housing, including falsely denying a unit is rented when it is still available, and the long illegal practices of steering (to one neighborhood over another restricting housing choices to the buyer or renter) and blockbusting or persuading an owner to sell, at a profit because of the entry of a protected class into the area. As an apartment owner, this legislation could come up when a tenant needs to make reasonable accommodations to a unit for mobility purposes. such as installing a metal bar in the bathroom, for instance. This would also apply to issues such as allowing a guide dog to live in your unit or even honoring a request from a mobility impaired tenant for reserved space parking unit.

BEST PRACTICE If in doubt, always check with your attorney and your Apartment Owners Association. They are looking out for you and helping you keep up with the many regulations to make sure you are always in compliance.

“If it’s your job to eat a frog, it’s best to do it first thing in the morning. And if it’s your job to eat two frogs, it’s best to eat the biggest one first.” 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.