For around 3 years, Los Angeles Landlords could NOT evict a tenant that decided not to pay rent, so long as the tenant can say, "Pandemic or Covid-19".

Finally the moratorium on evictions is set to expire at the end of this month. So to combat tenants having to get a job and pay their rent, the City Counsel is voting on Three New Restrictions on Eviction. Here they are:

1) Universal just cause

2) If rent is raised 10% or more, then the landlord has to pay the tenant relocation funds.

3) Tenants will have a 30 day grace period to pay their rent.

Wow... can't wait until NY gets wind and does the same thing.

30 day grace period... what a joke that is. Hope these don't go through.

Tenants not paying their rent = 1/4M

Paying Taxes

(Long term federal Capital gains tax

State Tax

Depreciation Recapture

Affordable Care Medical Tax

AMT

New 5 to 10 M sales tax

Brokers Commission

Escrow, Transfer TAX ($5.60/$1,000)

Title Insurance)

All of the above, Millions!

6x6 you can do the math...

Robert, I'd be pretty g** d*** angry about that. Enough is enough. I'm really sorry you have to deal with that. Its not right. Utter BS is more like it. They're bullies!! What they've done isn't right. Plain and simple. It just makes you wonder why the masses think it's ok to treat us like that, when they would never expect other businesses to do it. (Grocery stores aren't forced to accept theft of food! Hotels are not forved to kick out paying customers to house a criminal for free!).

California has always been a bit out there.

I used to live there in 25 years ago. Now, being a Midwesterner I like to grill out. One beautiful day, I went to the park, fired up some bricks of charcoal and was tossing a frisbee and having a beer. Was a great day, then a group of moral police came over and started yelling at us. Apparently the public park was theirs and our grilling wasn't good for them. I was taken aback, never been

reprimanded for cooking. But not only were we polluting their air, we were eating meat and that was a distasteful smell.

I'm so glad that happened to me. It made me realize I didn't want to live by people like that. If not for situations like that back in the 90s, I would have easily made a life there. Obviously buying property in CA in 70s 80s or 90s, you're doing pretty well for yourself and appreciation was good to you! But I'll be dam**ed. I just don't think it would be healthy living by those nutcase. Raised bloospressure and it can't be good for your heart knowing how much they're taking advantage of you. I really feel for ya! You're trapped.

But they're the idiots. You won't be pushed indefinitely. There will be a breaking point.

Cali is no doubt a gorgeous place and will always be. What a pity all that is going on now. The writing has been on the wall, though LA level of shenanigans area getting truly into cooky territory. The pendulum has shifted to far. Yes tents are high by the ocean BUT SO IS REAL Estate!

They are getting more takers and the people providing investment, hard work, & ingenuity are just not gonna be interested. It's such a very easy decision for those youngerthan us. Stay away! The next gen will to NOT want to invest there. With rules like that and legal theft of housing, why would they?

Best of luck to you. I have read your posts, you clearly have a ton of skills and knowledge. If you do leave, good news is you can rebuild many other places and you'll be good no matter what. Sad to see duch a beautiful place go downhill though. LA does not think it could become a Detroit. If they keep this up for another 20 years.... just watch.

Around 12 years ago before buying another apartment complex I drove/walked to each City/County Department to insure there was no dark clouds hanging over this property (Outstanding issues). I was given documents showing this was a charming nice property with no current or past issues.

Then after the purchase the City sent a violation to the previous owners, even though I took the time to make each department update their files. Not just ownership, but all 4 computer systems that THE HOUSING DEPARTMENT USES to identify owners.

The previous owner was given 10 days to address a minor issue, NO PERMIT FOR A SECURITY LIGHT. Big deal. The previous owner was out of the country.

SO THE WISDOM of the Housing Department was to put this property into REAP (Rent Escrow Account Program). Making the tenants pay their rents to the City, and charging me $50 per month per tenant for this privileged. And each tenant got a 15% rent reduction.

I was summoned to a Heating with the General Manager of the Housing Department. Since the City sent the Previous Owners notice, and it was the previous owners responsibility to notify me, I HAD NO LEGAL RIGHT TO CHALLENGE OR APPEAL THIS DECISION. No rent, rent reduction and costs. Plus my property was being watched by a Tenant Legal Concern -- tenants should get new carpeting, new painting and new appliances or I would never get my rents.

So the last 3 years of no tenant eviction due to the Pandemic was a piece of cake compared to REAP.

I proved the City Could have NOT place my building in REAP, the needed two serious violation, not a permit issue. I sued the City but the judge told me if he gave me a money judgement, he would never make it to retirement, the city would have him fired.

Ken,

We are not buying anymore here either. If I was in LA county CA I would sell or 1031 to somewhere else now. Especially due to these ideologues coming up with these insane "bright ideas" aka blatant wealth redistribution.

Let's see who will have the last laugh when all the rental housing dries up there.

The problem is as I see it that politicians big and small cater to the much higher number of renter voters and what those voters demand. No matter what impact it may have on the future of available places for them to rent

Also we LL's don't ever seem to have a strong political local and esp national organization that can influence these politicians or outline the more reasonable rules and laws. and a big problem that with most of our fellow LL's that they will not ever join it.

Many moon's ago, The City of Los Angeles was going to raise the water rates by 40%. As a landlord that owns many apartment buildings that pays for all of those tenants water use, this meant I would suffer I financial disaster. Not only would the water go up by 40%, but also the companion Sewer Fee's.

So all of the Apartment Associations put aside their petty differences, combined our resources and fought this unjust rate increase.

We the apartment owners won. No 40% increase over night. Instead it was 8% the first year and 5% each year afterwards.

The next day the City then Raised their sewer fee's by 40%.

Leaving us tired, tapped out and not ready for another fight.

Unfortunately with the affordability index where it is at for SoCal - the real estate market isn't looking so pretty there for some time. So for those of you who are letting Robert know he should sell and go else where, the market place is going to be hurting for a few years in the future.

Title: Los Angeles Extends Rent Protections After COVID-Era Moratoriums Set To Expire - Zerohedge dot com

Many comments such as: Yeah, if you think these low class deadbeat renters who don't pay rent are going to pay back overdue rent, your're dreaming! This is nothing more than a reparation program by the LA city council. LA voters have learned they can vote themselves freebies for now, but once the money dries up, these freeloaders will discover what tent life is all about! 

It's almost as if they want the landlords to go belly up and force them to sell. I wonder who will be the fortunate ones (politicians and Blackrock) that pick up these properties at fire sale prices ? I bet they expire the moratorium right after that.

LA already has a program W(CA), in place sine the 1990's. It's call STL, Screw The Landlords! Housing has over 750 million dollars in a trust Housing Fund, for the benefit of City Employee's. You see they force "older" mom and pop landlords to the verge of bankruptcy, then swoop in and offer them half the value for their apartments, agreeing to drop charges and violation against them.

I know of a property and cooperating buyer that once the City gains control of a property, waiting for the owners to relinquish title, the City allows a landlord custodian to take over the management during the transition period. Then after the "deed" is done, the City will accept closed bids on buying those seized properties.