Sacramento Rent Control is here & Statewide – What Are the Rules..?

California Apartment Association Has an Overview

 

Well it’s sad to say, but we’ve entered the area of State Wide Rent Control with the recent passage of AB1482 that was signed into law a couple of days ago by the Governor.

While this law could have been worse, it’s still takes away many protections for Landlords/Investors because they will not be able to easily raise rents to market rates or evict tenants that might pay the rent, but are disruptive to an apartment complex or not following the rules regarding care of their unit.

The real problem is the lack of affordable housing that is caused by the ever increasing regulations and barriers put up by governments, state and local.

I guess one good thing is there is no “enforcement mechanism” in place with this new State law, such as a “rent control board” that was created by the City of Sacramento.  By the way, that Rent Control Board will be funded by Landlords with another Annual Assessment.   So if a tenant has a dispute with you and at the same time owes rent to a Landlord, that tenant can easily get a Rent Control committee to hold a hearing delaying any kind of enforcement.

The rules, procedures and assessment amounts from the City of Sacramento Rent Control Board haven’t been published as far as I know.   So stay tuned and if you’re thinking of buying an investment property there or anywhere else in the State of California, you’ve got to be aware of the new law’s impacts.

You can still make money with investment real estate, but you’ll have to learn the new rules.

Managing a rental will probably be made a little more time consuming so why not hire a Property Manager.   A good one will help make you money and keep you out of trouble.

Check us out at Haven Properties, 916.990.0770 or call me anytime at 916.203.1260 if you have questions regarding Rent Control, the Rental Market or Residential Investment Sales.

Click Here for the INDUSTRY INSIGHTS prepared by the California Apartment Association.

 

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR   916.203.1260

 

 

Rent Control Is Here in Sacramento & Soon Statewide

Get Your Rents Up To Market Now Before January 1, 2020 Because Rent Control is Here.

 

The State of California it looks like is about ready to implement a Statewide Rent Control Law that recently passed both house of the State Legislature and headed to Gavin Newsom’s desk.

According to the Sacramento Bee Article I have here for you, it won’t become law until 1/1/2020.

If you have not raised the rent in a long time my suggestion is to do it now and get it close enough to the current market rent as you can because after the 1st of the year you will be limited in what you can do.

In addition, the more onerous “just cause” eviction will now be a factor in cleaning up a property that needs to rid itself of uncooperative tenants that maybe laying waste to the property and intimidating neighbors.   In the past with situations like this, we’d only have to give a 30 or 60 day “termination of tenancy” notice which had no defense.  It could be for any reason at all.

We rarely ever used that tool, but it did come in handy when we had situations that our Property Management Company encountered from time to time.

CLICK HERE FOR THE SACRAMENTO BEE ARTICLE DATED  SEPTEMBER 12, 2019 09:48 AM 

Now if you think Rent Control is going to help, it’s not.  The people it’s meant to help won’t get it.

Related Articles

CALIFORNIA LEGISLATORS MADE A MESS OUT OF RENT CONTROL. THEY JUST DON’T KNOW IT YET | OPINION – Newsweek, Sept. 13, 2019

California embraces failed rent-control policies at the statewide level – Washington Examiner, Sept. 12, 2019

If you have more questions, please contact me at 916.203.1260 or drop a note at favinger@rwnetwork.com

In the Mean Time…?

Make it a Great Day…!

Multi-Family Residential a Favorite for Investors

Late Cycle Real Estate Investing Strong

I thought I’d share an article from Bisnow.com.   You can subscribe I think for free and they will send you information to your inbox with Real Estate and other business news.

The reason I thought I’d share this is because many people I talk to,  including other Real Estate professionals, have the feeling the Real Estate Market is slowing down.Late cycle investing Bulls and Bears

However, the BisNow article points out the trends just before the great recession and the trends of today, especially when it comes to Multi-Family Residential,  are much different.

I share the optimism of the writer of the article because it applies to all residential income properties in this area at least, in my opinion.  Those types of properties include Single Family Homes, Duplexes, Four-Pelxes and Apartments.

They just can’t build enough units but they are trying.

Click here for the BisNow article.

Click here for a local Sacramento Business Journal Article regarding new construction of Apartments in the Region.

So if you’re on the fence about Investing in a Duplex, a Four-Plex, a Single Family Rental or an Apartment complex, please contact me today at 916.203.1260 or drop a note my way via email at: favinger@rwnetwork.com

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker

 

Rents Are Up In a Good Market and are Up in Down Market..!

You’d think the opposite would be true but it’s not.

It’s amazing  when you think about it, but after watching the video that I’m going to post below, I realized these guys are right.

When the Real Estate Sales market is “hot” rents go up.   But, even in a down turn, the rent rates still go up.

Messrs Brian Stevens and Frank Garay are a couple of loan guys that do a lot of video updates about the Real Estate Loan market, Real Estate Sales and about some of the “inside baseball” stuff for those of us in the business.

Our Property Management company is now leasing up Units in Apartment complexes, Duplexes and Single Family Homes for record high rental amounts and many times with “multiple applications”.

So after taking a peek at their video that I got today,  I thought I’d share it with you because their conclusion about rents going up in good and bad markets is something I had not thought of.

You can skip the beginning of the video if you want to and go to the 3.43 minute mark to see their presentation that includes an interesting graph to make their point.

If you are thinking of Investing in a Residential Rental property such as a Duplex or a Four-Plex, a Small Apartment complex or even a Single Family home….?

Then, call me at 916-203-1260 or drop a note my way at favinger@rwnetwork.com.

I’ll bring you up to speed on our local market with comparable sales information and also what you can expect to earn in rents.

In the Mean time…?

Make it a Great Day…

Ed Favinger, Broker, CRS, GRI, SFR, CDPE        favinger@rwnetwork.com

 

Sacramento Residential Rental Market Update – It is Hot…!!!

Overflow of Multiple Tenant Applications Since the Start of the New Year.

If you are an investor in the Sacramento Residential Investment Market and have been actively looking for something to buy,  you know there’s been multiple offers presented on a lot of the inventory here.

The reason is simple… not enough supply.3d render image of houses with graph growing

While that is frustrating for some investors who are looking to get into the market because the economy here is good,  if you’re a renter….?

You’ll notice that rental rates have gone up for the very same reason and that you aren’t the only ones applying for the same place.

Our Property Management Company has experienced a serious up tick in rental applications on our available properties that started the day after January 1st.

Since  we specialize in  Sales & Management of Duplexes and Four-plexes for sale, Small Apartment buildings  and of course sales of Single Family Homes,  please call me at 916-203-1260 or drop a note my way at favinger@rwnetwork.com.

If you want to get into the Sacramento Residential Rental Market you could not pick a better time.

I’ll help find the right deal for you and since we manage these investments we know what income you can reasonably expect to get.

Maybe we can find something like the one below.

4 bedroom home in Natoma Station
184 Elkins Circle, Folsom – A nice 4 bedroom home in the Natoma Station Neighborhood

 

In the Mean Time…?

Make it a Great Day…!