” The golden rule is there are no golden rules.” George Bernard Shaw

Since the passage of AB1482 also known as the TENANT PROTECTION ACT OF 2019, housing providers have been required to give a valid reason for evicting a tenant. This is as opposed to an “at fault” eviction where relocation monies may be given to the tenant.

WHAT IS JUST CAUSE? This term refers to the reason for evicting the tenant in the first place. Acceptable reasons include non-payment of rent, refusing to sign a new lease agreement after expiration of a current one, criminal activity and subletting your unit in violation of your lease agreement. These are things that ordinarily trigger some activity on the part of the landlord. I am not an attorney, so if you are faced with an issue such as those I listed, the thing to do is to contact your Real Estate attorney, preferably one who specializes in evictions and has plenty of experience. In the current climate, evictions can be complicated and quite costly. Not only are you looking at legal fees, you will likely lose several months rent, and there may be damage to the unit when you finally regain possession of your property..

NO FAULT JUST CAUSE This is another type of eviction that could come up in your building. In this case, the tenant is being evicted for reasons like the owner moving in to your unit, taking the unit off the rental market, having a government order to vacate or in case you as the owner have decided to demolish the property. Generally, these types of evictions will trigger a relocation fee due to the tenant. This can be a complicated and in some areas like Los Angeles, unincorporated areas of Los Angeles County and West Hollywood may have additional restrictions. Again, your real estate attorney is best equipped to advise you as you move through this process. The best idea is to talk to your attorney before you move forward and before you approach your tenant. If not, you could inadvertently do something that could be expensive for you in the future.

EXCEPTIONS If your property was built in the last fifteen years, if it is a single family home or a condo, and if the property is in your name, as opposed to an LLC or an S Corporation, you may be exempt. The rules are many and are ever changing, so scheduling a tax deductible meeting with your real estate attorney is the prudent thing to do.

“No one is going to know or care about your failures and neither should you.” Mark Cuban

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.