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Rent Control Information

Los Angeles County:

REAP, Tenant Occupied and Rent Controlled Properties

When it comes to multi-unit properties, the most common issues our clients are experiencing include:

  1. Rent Control (under market rents): The Los Angeles county Rent Stabilization Ordinance (RSO) allows an increase of 3% in rent increase until June 30, 2021. What rights do landlords have in respect to attaining more income for their properties?
  2. City of Los Angeles Housing Department (LAHD): Compliance issues on illegal occupied units.
  3. Rent Escrow Account Programs (REAP): Uninhabitable units that the city will cite and garnish rents until it is solved.
  4. Squatters: People who unlawfully occupy vacant and uninhabitable structures, building or land. A major problem in Los Angeles county today. There are currently many scams that target Bank Owned and Investor Owned properties in where an individual will move into a vacant property, make up illegal and unenforceable leases and have utilities turned on in their name. This causes the rightful owner to start the eviction process or pay relocation fees all over again.
  5. Tenant’s rights Groups (such as BASTA): Organizations like this are known to have eviction cases postponed for years on the smallest technicalities thus taking away any monthly profit on these Investments.
  6. Vandalism Risk: A huge expense for an owner to fund in addition to all the property maintenance which ultimately takes away from its profit.

Because we represent every major bank and servicing lender nationwide in addition to our personal connection with most mortgage companies, asset management firms, hard money lender’s, GSE’s, hedge funds and private sellers nationwide – we understand how they operate and how every facet of these problems can be resolved.

As an example:

On a typical L.A. County Duplex, we must always assume the relocation costs will be $18,700 per unit or $37,400 which is the maximum. In addition, an illegal garage unit or LAHD repair will typically run $15,000 to $25,000 to correct, of course this would not include rehab which can be another $20,000 plus give or take. Whether your strategy is to hold or sell, these issues will have to be resolved. Most of our sellers do not want to spend $60,000 to $100,000 if their game plan is to liquidate. It makes more sense to sell these AS-IS to an Investor at a discounted price, disclosing the current property issues.

If you find yourself questioning what to do, our award-winning team can certainly guide you. We have had many exceptional results in the execution of moving clients’ assets from their portfolios, successfully selling them or other. It is an arena we know very well and our expertise plus experience in the matter have allowed us to help thousands of clients over the last few decades with their real estate investment collection.


Rent Stabilization Ordinance: