LA rent control makes it extremely hard to evict tenants as long as they pay rent. We can argue about whether that’s socially useful or not, but what I want to focus on today are the implications for running your buildings. The first thing you have to understand is that there are only two ways … Continue reading “Recalcitrant tenants and LA rent control”
Category: Property Management
The Biggest Mistake LA Landlords Make
How do you feel about giving your tenants part ownership of your apartment building for free? Pretty terrible, right? If you own a rent controlled building in Los Angeles and don’t raise your rents by the amount allowed by the city each year, you’re effectively giving your tenants a stake in your building for free. … Continue reading “The Biggest Mistake LA Landlords Make”
Will I manage your property?
I get asked periodically by owners if my organization would manage their properties for them. Generally speaking, the answer is no. The reason is that our time is much better spent on our own projects, where we can reap the rewards of our very specialized skill-set. Hiring us to collect the rents on a stable … Continue reading “Will I manage your property?”
What’s a new landlord to do?
I got an email the other day from someone I’m helping buy an apartment building. We’re at the stage in the process where we’ve gone from the theoretical work of modeling out different acquisition opportunities to the practical work of getting her in a position to start actually leasing out units. Reality has set in: … Continue reading “What’s a new landlord to do?”
Rising rents
We’ve just turned over a few units in properties in Silver Lake and Echo Park and, boy, is the rental market heating up. We posted a studio at one property in south Silver Lake right by the border with Echo Park for $1,300 (up from $1,200, I think). The unit and the building are both … Continue reading “Rising rents”
Avoid problems with the Los Angeles Housing Department
Pro tip: You don’t want to buy a building, only to find yourself in the middle of a war with the Los Angeles Housing Department (LAHD). Under the standard California real estate sale contract between seller and buyer, the seller has a duty to disclose any on-going issues that may effect the value of the … Continue reading “Avoid problems with the Los Angeles Housing Department”
How you improve the neighborhood
Sometimes all you need to do to improve your neighborhood is to yell at a priest. My brother and I own a 16 unit building on Reno St (the one from this story) that’s across an alley from a new church, one of those Latin Pentacostal deals. The street itself isn’t the nicest one in … Continue reading “How you improve the neighborhood”
Should I hire a property management company?
Not now, maybe later. That’s it, in a nutshell. Here’s what I mean: On your first building, likely a 2-4 unit building acquired with an FHA mortgage, you don’t want or need a manager. First, you need to learn a bit about the business – what it’s like to fill vacancies, collect rents, deal with maintenance … Continue reading “Should I hire a property management company?”
Open Challenge to East Hollywood Landlords
Guess what we get for one bedrooms with no parking on Westmoreland in East Hollywood. Give up? $1,500 / month. Here is an ad for the 2 bedroom unit that we have on the market now. We’re asking $2,000 and we’ll definitely get it. [Edit: We got it.] On a per square foot basis, those rents … Continue reading “Open Challenge to East Hollywood Landlords”
Should you post a “For Rent” sign on your building?
No. Or, at least, not unless your building is on a high traffic street. Why? Because posting a sign does two terrible things: It makes your building look cheap. Useful signs are large enough for people driving by to see. Signs that large are almost always tacky and horrible. Do you want your building to … Continue reading “Should you post a “For Rent” sign on your building?”