“When you’re providing a service to somebody, you’re the guy they always call when something’s wrong.” Steve Wozniak

Do you provide stoves and refrigerators for your rental units? If AB 628 passes, you may be required to provide both appliances beginning next January. Previously it has been the choice of the housing provider, but this will take away the option.

WHAT DO YOU DO NOW? In my case, I always have supplied stoves and maintained them. I find that most tenants don’t own a stove but many do own a refrigerator. When I am renting an upstairs unit, I prefer to provide a refrigerator, partly because I am concerned about potential injuries to the tenant, or another tenant in case of an accident. Another consideration is that many people will bring in an older refrigerator, which could cause water leaks to a downstairs unit or could cause another issue when the tenant moves it out. Tenants moving large items up and down stairs can be dangerous.

NEW PROPOSED BILL. If 628 passes, you will need to provide stoves and refrigerators for all units on all floors. Originally, the bill was going to require appliances that were under ten years old. Luckily, after a representative from California Apartment Association reasoned that throwing out so many working appliances would be not acceptable environmentally, that requirement was removed.

EXCEPTIONS. There are some exceptions for single room occupancy units, units with communal kitchens assisted living facilities and permanent supportive housing apartments, which typically support people dealing with homelessness or mental health issues.

“If you give the future all your attention, the present will pass you by.” Phil Jackson

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.