General Topics affecting / related to the 1-4 unit Residential Real Estate Investment Market
The Rent Stabilization Ordinance (RSO) has brought about a lot of changes for 2017. Among the most important of these are the Tenant Buyout Notification Program, or "Cash for Keys". Many of us have probably heard of, if not experienced firsthand, a landlord looking to strike a deal with a tenant to get them to move out of their unit. This tends to happen a lot in developing neighborhoods, where someone is looking to renovate an entire building and reopen at a higher pricing tier.
As this trend has grown, the city has taken notice. Through the Cash for Keys program, tenants in RSO covered housing will be better protected as tenant buyouts become more regulated and streamlined.
Knowledge is Power
One of the main ideas behind RSO changes for 2017…
If you’ve driven through downtown LA on the 110 in the last few months, you’ve probably noticed the new construction that’s been taking shape on the iconic landscape.
What you’ve been driving past is soon to be Metropolis, an ambitiously large-scale complex of retail shops, a restaurant, a boutique hotel, a garden and three towers of luxury condos that start reaching into the skyline from six stories above the street.
Here’s a rundown of the three residential towers.
This tower has already sold most of its availability, and there’s every indication that they will all be sold by the time the tower is available for move-in. Offering 308 units in its 38 stories, this will be the first of the towers to open. It's luxury…
Increasing numbers to tenants are becoming familiar with the Rent Stabilization Ordinance, and most rental property owners are already familiar with it. For more information on the Los Angeles RSO, have a look here.
RSO and most of its regulations have been in place for some years now. However, there are some changes taking effect in 2017 that tenants and owners should both be aware of.
Rent Registry Ordinance
Effective as of October 4th 2016, the LA City Council has enacted the Rent Registry Ordinance, which applies to all properties covered under RSO.
What landlords need to know
- All properties under RSO must be registered by the last day of February each year
- A separate form must be submitted for each
Down on the corner of South Virgil Avenue and 5th Street, a short walk away from the bustle of 6th street and Wilshire Blvd, are the luxury condos of Element 436.
Having opened its doors in July 2016, Element 436 is a new structure that houses luxury condos near the heart of Koreatown. All residences offer either 2 bedrooms and 2 baths, or 3 bedroom and 2 baths with varying floorplans. Square footage ranges from 1,042 to 1,164 for the 2 bedroom homes, and from 1,341 to 1,385 for 3 bedrooms.
Prices have more variance than sizes, starting at $597,600 and reaching up to $914,500 for penthouse level homes. These prices have been rising as more residences are being purchased, so hesitating on getting a spot here won’t do you any favors.…
Appraisals are useless in the 2013 Los Angeles Real Estate Market
Theoretically an appraisal is supposed to represent the current market value for a piece of residential real estate. If you look at a standard appraisal done on the Fannie Mae form 1004 an appraiser will use 3 different methods to determine value: Cost Approach, Income Approach and the Sales Comparison Approach. In the Residential market the value typically used is the Sales Comparison Approach, meaning the appraiser uses prices of comparable properties (similar age, square footage, lot size, condition, amenities, neighborhood, sold within last 6 mos within a 1 mile radius).
Becasue HVCC appraisers are using past sales (typically distressed) to determine value of a property with…
Here is the checklist that the Section 8 inspector will use to determine if your property is in adequate condition for the Section 8 program. The checklist is pretty much self explanatory. If you have any questions about getting your property enrolled in the Section 8 program feel free to call me 323 412-9060.
Are you trying to buy a property in the city of Los Angeles under $350,000?
Having problems getting your offer accepted?
Are you blaming your lazy Real Estate Agent for not working hard enough?
While this may be true in some cases there are some important macro trends influencing inventory levels of Residential Housing in California that are having major impacts on the Los Angeles Residential Real Estate market and people trying to buy homes in Los Angeles. Before getting pissed at your agent or frusturated with the process take a look at this well written article on doctorhousingbubble.com explaining some of the reasons the Los Angeles Real Estate market is experiencing such low inventory levels.
As of January , 2013, property managers and landlords in California are required to disclose in writing to any prospective tenants if a notice of default has been recorded against the property (Landlord in Default Form LID). The law applies to rentals of single-family homes and apartment buildings of no more than four units.
The disclosure also includes a notice that if a new owner takes ownership of a property following foreclosure, the owner will not be able to evict the tenants for a least 90 days written eviction notices in many cases.
Supporters of the new bill say that such a disclosure is critical for tenants in making an informed decision about where to live. Opponents, however argued that such disclosures could worsen the financial conditions…
WHAT IS RENT CONTROL?
Rent control, or rent stabilization, is much more than the 4% maximum increase to which people refer. It is a collection of laws that regulate how much a landlord can raise (or must reduce) the rent, limit the reasons for eviction, and more.
ARE YOU UNDER LOS ANGELES’ RENT CONTROL?
the City of Los Angeles itself is a huge area covering neighborhoods we know by name, which are so large that we think of them as cities. See the Map to be sure. (http://www.caltenantlaw.com/LAcommunities.htm)
IS YOUR UNIT EXEMPT? Next, you need to know if your unit is under rent control. Rent control covers all residential units EXCEPT those fitting specified categories. The two biggest exemptions are (1) single family dwellings and (2) units…