“Regulations grow at the same rate as weeds.” Norman Ralph Augustine

AB 2747 may cause a little extra work for housing providers beginning Jan 1, 2025. Tenants will now have the OPTION of having their positive rental information reported to one of the nationwide agencies, such as Experian.

WHO HAS TO REPORT? Owners on 15 or more residential units. However, if more than one building is owned, regardless of the number of units the law will apply. It also applies if the property is a Real Estate Investment Trust (REIT) a corporation or an LLC in which at least one member is a corporation.. It is quite common nowadays for investors to place their building into an corporation or an LLC so if you have a smaller building you may still be subject to this regulation. I have both LLC and corporation. These are great things when it comes to taxes and liability, but they could cause you to do a little extra work.

HOW OFTEN MUST THIS INFORMATION BE REPORTED? The retirement is once annually. For existing leases, the reporting must be done by April 1, 2025 and then once annually. The cost may be passed on to those tenants who decide on the option of reporting. The maximum charge to housing providers is ten dollars per month, but the charge cannot exceed actual cost.

WHAT TO DO? If you have decided that you fit into the criteria and the law applies to you, the first thing is to ask the tenants whether or not they want the reporting and make them aware of the cost per month. If they decline, be sure to get it in writing for future reference. If they do want the reporting service, check with nationwide providers regarding the cost and what paperwork is involved. It is quite possible that tenants may not want an additional charge and you will be able to report on their payment efficiency when they decide to move and you get a call from prospective landlords, as we have done it in the past.

“Self praise is for losers. Be a winner. Stand for something. Always have class and be humble.” John Madden

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 or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. 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.

We look forward to a prosperous 2025 and we look g= forward to be of any help we can to buyers and sellers of multi unit properties.