“The more laws and restrictions there are, the poorer people become…” Lao Tzu

AB 2042 passed the California Assembly on May 13, 2026. It is now up to the Senate. If this bill becomes law, it will could cost the lives of (especially smaller) housing providers a lot of expense, complications and time.

SERVICE Normally, we provide service of a 3 day notice by personally serving the tenant or posting and sending a copy in the mail. When it comes to serving the actual summons, I have always hired professional process servers. I no longer handle my own evictions, because of all the new rules, but even when I did, I used a professional process server. Like most housing providers, I am not an attorney and I appreciate the value of having a professional handle what can be a complicated and difficult procedure.

This proposed legislation will most likely, increase the cost of hiring a process server, and with all the other expenses involved, result in an expensive endeavor.

CHANGES Under 2042. Among other things this will make the process more difficult and time-consuming on the process server. Date and time-stamped records of service to the tenant would be required as well as GPS location tracking. This is sure to delay court proceedings and increase costs for the housing provider. With the increased times we are seeing to get service from sheriff’s offices, this can add more time to actually getting the tenant out .It would also likely add months of time and you will not get any income from that unit, even though your bills keep going up.

NOT ONLY THAT… Even if the whole process is done perfectly, the case may still be reopened. This would clearly create issues in final court judgements, encourage delay tactics increase costs and slow down the process even more! So many potential multi-family investors have been discouraged from entering multi family investments. Builders must make a choice to build a multi- family building or condos. This will in the end, hurt the people they are trying to help. A diminished number of rental units in Southern California helps none of us.

WHAT TO DO? First, Read the bill. You can find it on the internet. If you disagree with the bill. call your STATE SENATOR and let them know what a crucial and important job housing providers all do for everyone. While a lot of former housing providers have gotten out of the business or moved their assets to another type of property, housing providers are maintaining an ever dwindling number of rental units.

“Whatever it is, I’m against it.” Groucho Marx

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.