“It seems to me that an unjust law is no law at all.” Saint Augustine

The so-called “Justice for Renters Act” has been defeated so for now, we can breathe a sigh of relief as housing providers. Tenants, investors and multi family builders are saved from a poorly thought out proposition which would have hurt everyone, including those it was supposed to help.

WILL IT HAPPEN AGAIN? Michael Weinstein and his AIDS Healthcare Foundation have tried several times. In 2018, it was Proposition 10 and in 2020, it was Proposition 21. They have said that they will try again. This time, because Proposition 34, passed they will not be able to use monies set aside for Prescription drug coverage. Proposition 34 Requires 98% of the funds from Federal discount prescription be spent on direct patient care. The over 800K that was wasted on the Proposition 33 advertising could have paid rent for over 1500 units or paid for many needed repairs and actually done some good. Hopefully we can relax until the next election.

BACKING THE DEFEAT Those that helped in the campaign to defeat the dangerous and irresponsible Proposition 33 include the Calif. Association of Realtors, California Chamber of Commerce, NAACP California/Hawaii State Conference, and the California Council for Affordable Housing. Politicians such as Todd Gloria, Mayor of San Diego and Gavin Newsome, California Governor also stood against Proposition 33.

WHAT TO DO NOW? One of the most egregious things in the proposition was VACANCY CONTROL which limits the rent on a vacated unit to what the previous tenant was paying. Even if you pay successfully to get a tenant out and make your unit rent ready, you are stuck with a below market rent. That didn’t pass! So rent your vacant units at market rate and raise your rents every year per the law in your jurisdiction. Whatever percentage is allowable, don’t just let it pass. You don’t get to make it up later, so make sure you send out those notices every year. Be vigilant when it comes to pending legislation. Follow your Apartment Owners Association for the best information in the industry. They are here to help. If we all work together, will will be more successful and prosperous. Congratulations to all the Housing Providers!

“The more difficult the victory, the greater the happiness in winning.” Pele

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.