” The right of voting for representation is the primary right by which other rights are protected.” Thomas Paine

This may sound obvious- 2 propositions on the ballot – one which is terrible for Housing providers and one that is not. The numbers are close and we need every vote!

VOTE NO ON 33 VOTE YES ON 34!

WHAT IS PROP 33? This is the “Justice for Renters” Bill that will remove Costa Hawkins, put essentially every property including single family homes and duplexes in the mix for AB 1482- California Rent Control. Most properties in California are already subject to 1482, but this will add more. It also gives us vacancy control- If a tenant moves out, even if their rent was well below market, the new tenant will pay the same rate. This could be devastating to investors of value-add properties who are trying to improve the quality of their rental properties. They have tried this bill before and, most likely, they will again, but as housing providers, do not let your hard work and effort be devalued. VOTE NO ON 33!

WHAT IS PROP 34? This one is a little more tricky. It requires healthcare providers to use the money from a federal discount program for prescription drugs to be used for just that. The measure requires 98% of the funds be used for healthcare services and not for political purposes as has been the case in the past. It puts guardrails on how these Federal drug discount funds can be used. The funds can be a substantial amount. VOTE YES ON 34!

WHAT ABOUT THE TENANTS? If 33 passes, the incentive to invest in multi family properties will diminish. People will put their money into stocks or maybe retail centers instead of apartment buildings. Builders will be less motivated to build with less potential buyers, and the already crucial demand for additional rental housing will not improve.

This is a chance for housing providers to help themselves and others by helping to increase the supply of quality rental housing.

“Humor is reason gone mad.” Groucho Marx

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.