“If you do what you’ve always done, you’ll get what you’ve always gotten.” Tony Robbins

In November we have a chance to to vote on a measure (ACA 14 DE MAIO) that not only affects housing providers but actually all Californians.

HIGH POINTS There are several issues with this measure that has been heralded as “saving Prop 13”:

1) It would require any “tax increase’ or “fee increase” to go through the initiative process which, in my opinion, gives the people of California more of a say when it comes to taxation.

2) It requires a two thirds vote for any fee increases to become law.

3) It requires a statewide vote for things such as “mileage tax”, “car tax”, “gas tax” and “savings tax”. These items can affect the pocketbook of every Californian.

WHAT TO DO Read the measure. You can google it at your leisure. You can also read articles from people that oppose the bill as well as those who are in favor of it. Speak with friends and family and if you agree that this could be beneficial for you, vote in November.

MAKES IT MORE DIFFICULT TO RAISE TAXES. In this time of so many increased costs for not just housing providers, but all Californians, we could all use some more control over rising costs. One of those costs is your property tax bill. With the cost of repair parts and labor moving in the wrong direction, as well as administrative costs for evictions, this legislation attempts to make it more of a vote by all Californians when such an additional expense is proposed.

STAY VIGILANT For years we have had Proposition 13, which bases the property tax rate on the date of the last sale of the property with small increases over time. Other states reassess with no rhyme or reason, which California used to do. This can make life extremely difficult for everyone including housing providers attempting to make a budget for a multi-family property.

JOIN YOUR AOA Your local Apartment Owner’s Association can be a valued partner as a housing provider. The forms provided by the AOA are very helpful, downloadable and are always up to date. If you haven’t already joined, I recommend you do. The helpful partnership is inexpensive insurance when we are dealing with ever changing laws. The tax deductible fees are quite reasonable for the knowledge that is available. One mistake could result in substantial costs.

“I can accept failure, everybody fails at something. But I can’t accept not trying.” 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 45 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.