“”The price of inaction is far greater than the cost of a mistake.” Meg Whitman.

At the start of the new year, it is a great time to raise rents. I like to send out rent raise notices around the end of January with the new rental amounts beginning April 1st. That is a little more than 60 days notice, so it gives tenants time to decide if they want to stay or leave. Most tenants, not being in the rental business, don’t realize what similar properties are charging. Once they see what’s out there, they will probably decide to stay.

CONSISTENCY. I always give out rent raise notices in January, so my tenants know that it will be coming. As I said earlier, I like to give tenants plenty of time to look, in case they decide to make other arrangements. With rent control, tenants can find out what we can charge and how much we can raise rents. I have always found it best to be up front about it, because housing providers are providing a very necessary service, and even with all the current restrictions, deserve a fair price. Since we are limited by the laws of each municipality, I find it best to raise rents for each tenant at the same percentage. The exception would be for new tenants who may be at current market rate, having moved in recently.

RESEARCH Be sure you know the percentages for your city. Remember the LA City, LA County strip and West Hollywood have more stringent laws than other areas. Check with your city or with your Apartment Owners Association to make sure the amount is correct. You may be a few properties up from another municipality which could be under different rules. For instance, the City of Torrance and Torrance P.O are next to each other, but they have different rent control restrictions.

IF A TENANT DECIDES TO MOVE Be sure to research properties like yours in similar locations to make sure you get the maximum rent possible. The rental income is going to affect the value of your building and will be a major factor should you decide to sell or refinance. Don’t sell yourself short. You may not get a chance to rent that particular unit at market value for a long time.

MAINTAIN YOUR PROPERTY During the time you give out rent raise notices, tenants are more likely to mention things that need repairs or maybe just cleanup or maybe better parking signage. All of these things help in maintaining happy tenants and getting maximum rents when you do get a vacancy. Best of luck in 2025.

“There are only two options regarding commitment. You’re either in or you’re out. There’s no such thing as life in-between.” Pat Riley

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 forward to be of any help we can to buyers and sellers of multi unit properties.