“Better an empty house than a bad tenant.” Traditional Proverb

When you go through the eviction process you may be surprised at the cost. If you have not recently gone through with an eviction, those costs include legal fees and months of lost rent. Add that to the months the sheriff is taking in order to serve the writ to your tenant, which has gone up, and you could be looking at thousands in costs and lost rent. Additionally, any damage to the unit once the tenant is out is yours as well.

WHAT IS AB2042? AB 2042 (Karla) is a bill which changes the eviction process in several ways:

1) A signed one page declaration from the tenant is enough to “neutralize” your proof of service. You must then prove that you are NOT lying!

2) Tenants can reopen a judgement for eviction for up to 15 years after the judgement. You must then pay for an attorney to defend yourself.

3)Tenant can move to dismiss the entire case, not just the judgement.

These things could make being a housing provider even more difficult.

WHAT TO DO? Call your State Senator. Ask them just to remove unlawful detainer provisions from the bill. This could easily be done with an amendment. This is an issue that could affect the livelihood of you and your family for many years to come, and should not be taken lightly.

WHAT IF THIS PASSES? This would make it even more crucial to vet your prospective tenants. This is going to make it more difficult for many prospective tenants who have lower income or other issues. There was a time when we could take a chance on someone and help that tenant to improve their credit and standing by paying on time and keeping up the apartment. So much for that.

I always like to drive by a tenant’s former residence, unannounced. This will give you a good understanding of how they live and whether they would be a good fit for your building. Don’t forget to talk to former landlords and property managers, employers and even friends. The job of choosing a new tenant has become one of your most important jobs as housing provider.

“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 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.