Owners of non-rent stabilized apartment buildings in Los Angeles with rents below market (eg most of them) ought to be considering their options in light of the likely repeal of Costa-Hawkins.
Two obvious courses of action:
- Sell now, while the market continues to (mistakenly, in my view) place a premium on non-RSO buildings; or
- Immediately bring rents to market (likely via some kind of re-positioning strategy) in order to avoid being “trapped” with low rents when rent control is inevitably extended to post 1978 structures
To fail to do either of the above is malpractice.