“One of the greatest delusions in the world is the hope that the evils in this world will be cured by legislation.” Thomas Reed

If you have ever had to do an eviction, you know that the process can take months. There is a move currently pending which could extend that time even longer.

SB 436 This bill authored by Alisha Wahab and Mark Gonzales would extend the period of the current 3 DAY NOTICE TO PAY RENT OR QUIT. As you know, the 3 day notice (or 14 day notice) is just the beginning of what can be a very long and expensive process for housing providers. This bill which was originally introduced in February, is moving through the process and could very soon become law in California. It would essentially give every tenant 14 additional days to pay rent. This would cause hardships for housing providers who need the income to pay for things such as mortgage, utilities insurance along with maintenance and repairs.

PROS Proponents claim that the measure will help to reduce homelessness by giving tenants a longer time to find rental assistance. Counties such as Los Angeles, Orange County and others offer temporary rental assistance programs.

CONS Those opposed to the legislation, including the Apartment Association argue that this bill will allow tenants to unilaterally delay rent payments until the middle of the month, creating undue hardships especially on “mom and pop” landlords. Smaller housing providers usually don’t have a reserve of cash and may incur late payments and even utility cutoffs. Additionally, a big problem is having to wait for needed repairs. In this era of evictions being a nightmare in lost income and potentially high legal expenses, this presents another burden on housing providers. Many are already opting to sell or go into another investment vehicle instead of multi unit real estate.

WHAT TO DO The Apartment Owners Association has prepared a letter which you can copy and send to your State Representative. You can also call or email or even send your own letter. Make your voice heard because if this passes, it will adversely affect your property and your future.

“If it turns out that my best wasn’t good enough, at least I won’t look back and say I was afraid to try.” Michael Jordan

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.