Had another Systematic Code Enforcement Program inspection on another apartment property. This time by another idiot from the City inspection pool. While walking up a set if inside steps to reach a second story apartment the inspector commented the toys left on the steps are dangerous and someone should tell the children not to leave toys on the steps after playing with them. I suggested that the inspector have a word with a parent or child. He commented that that wasn't his job to enforce safety code but to report back to the city and have me do the "talking to". the parent.

I reminded the inspector that it wasn't my job to "teach" a parent how to raise their kids. So before leaving the unit after the inspection was complete, I announced to the occupants/tenants what the inspector was doing. HE WAS TELLING ME THAT THE PARENTS DIDN'T KNOW HOW TO RAISE THEIR KIDS AND IT WAS MY RESPONSIBILITY, AS THE LANDLORD/OWNER, TO MAKE UP FOR THE SHORTCOMINGS OF ANY CHILD PARENT(S) AND DO THE PARENTING!

The inspector reminded me that it was withing his power to make police and housing reports against me. I alerted the inspector that it was within my power to locate dead beat tenants for collection purposes, or to find inspectors personal residences and redecorate said property at no costs.

Arguing with an inspector is sorta like wrestling with a pig in the mud.

Well after 3 years of tenants not having to pay rent, I'm short fused dealing with any government employee.

Like the time the guy said, "I'm coming on your property to talk with your tenants"! I said, "No your not, until you have a search warrant"!

Then this inspector said he had the phone number of the SWAT team and they can make me let him on my property. I replied I had the phone number to the Beverly Hills Gun club and they all need some target practice-- I'll let them use my property for some life like moving target practice!

In Los Angeles City I have over 10M in property. If I sell and pay taxes, it will drop to 6M, a loss of 4 million. While I have much more stuff out of the City, my holdings have be remodeled, fixed up and in A+ condition.

Lets review the process:

The SCEP inspection for safety is mandated by law. Inspector is required to report any safety concerns, and that would include toys on the stairs, so he is required to report.

So what? What's to be done? Inspector wants you to speak to the parents; So speak to the parents and your job is done.

You don't really want anyone to be injured, do you? On YOUR property? With a report to L.A. Housing department that dwelling lacked safety?

You are too anxious to fight and defend your place in society. You might do better to WORK WITH the system rather than to constantly try to challenge it.

Wow, the SWAT team showed up because an inspector for the city called them?

I have worked with a couple SWAT guys in my area. Not learning their trade but other things they could teach me. I have never, ever heard of a tactical unit being allowed to go to a call like that.

Not only do you make stuff up that will potentially harm others who believe it and follow but now you are saying that the Special Weapons and Tactics squad for L.A. actually showed up to your rental all geared up and ready for a fight because a city inspector tricked them into it?

SCEP first lied by getting a huge budget to hire 100 new inspectors for the program back in 1998. What the City did is POCKET the extra TAX Money and transfer inspectors from other departments, 83 to be exact not 100 as promised. One department that lost over 15 inspectors was the EMERGENCY RESPONSE Unit dealing with Low income residents in the city. So if you had rats, instead of waiting for 29 days for a city inspector, now you had to wait six months.

I had an inspector show up at my 16 unit building 20 minutes early. I told he he could inspect 14 of the 16 units---we had to wait until 12:00, WHEN THE PARENTS WOULD SHOW UP SINCE MINORS WERE IN THE UNITS ALONE.

The inspector agreed and I told he to inspect all units except for unit #1 and units #14. So then this inspector knocked on the front door of unit #1, saying "Open up Immigration". The child opened up the door and in went the housing inspector, not immigration.

So I called 911 and said, A person pretending to be an Immigration inspector just entered an apartment with little children. The police showed up and the inspector showed his City Housing Inspector ID. The inspector said I shoved him and the police arrested me. That's until I pointed out that next to unit #1 was the mail box bank and I had a video of the event.

Robert J,

I have been observing your recent post and can feel the tension. I believe that you are a very knowledgeable person with vast experience, however, I don't think that you are a very happy man right now and I don't blame you.

I would like to ask you a few questions. I know that you mentioned about having to pay lots of capital gains taxes and that if you held out that your property values would increase by a lot along with rents, but what if you did a 1031 into something else, maybe like mineral rights as Ray does?

Will you be able to recoup the lost rent?

How much rent loss will you have to absorb to make you think about selling?

If you sold and paid 4M in taxes and you had 6M left over, could you live out the remainder of your life on the 6M?

How much money would it take for you to be happy and survive on in order to sell everything?

Most importantly, what value would you place on being happy every day that you wake up and love what you are doing?

If you could do anything in the world and make the same money that you do now, would you still do RE or would you do something else?

I wish for your peace of mind and happiness.

Now, let me go talk to the person in the mirror.

I've been an owner of rental property since I turned 18, that was back in 1978. That makes me a 45 year veteran of this business, with the aid of people like Mr. Landlords, the AOA and others.

Back in 1997, all departments of the City were warned. Due to the decline of property valves and the slashed Property Taxes, each department would have to "create" a unique way of taxing (Screwing) the landlords/home owners into paying MORE so the city officials could still live "High on the Hog".

First came no allowed or delayed declines in property values, costing landlords $32 million dollars in lost interest.

Then came the Code Inspections.

Next every year new phone rules were added to obtain extra violation fees. Such as:

A) if an inspector observed bedding, a pillow or sheets in a Living or Dining Room, he would declare that a "BEDROOM without a smoke detector" and issue a $500 fine. Then the landlord had to obtain a permit and install smoke detectors (Hard wire with battery back up) in all living and dining rooms.

B) Then when a tenant demanded a ceiling fan over the last 25 years, a landlord was required to install it. So the Next inspection, if the fan blades were within 36 inches of a smoke detector, they it had to be relocated. But you had to drive downtown to obtain a permit to cut a hole in the ceiling (lead paint) and also a permit for electrical. Only an electrician with a Lead Certification could do this job. There goes another $500 per unit.

C) These were jut a few examples of the crap I've had to deal with.

Having some wonderful friends advise me to stop taking the beating and fight back. I've done that on water hikes, illegal taxes, etc.

Robert J:

I'm only roughly familiar with the SCEP program, because I don't have any rental property in L.A. City.

But your long years of experience haven't taught you the basic lessons of dealing with governments.

First, the experience of inspector citing you for toys on the stairs: The inspector's job is to ascertain that the rental is safe. S-A-F-E. He has his responsibility to inspect and report, and if he feels that there is an unsafe condition, it is his responsibility to report it. He is not limited to conditions like smoke detectors, unsafe locks, leaks in ceiling and holes in floors. His mandate includes what to do to settle the citation. So, why not do it in the simplest way? Send a certified letter to the tenant to not allow toys on stairs, send SCEP a copy, along with a letter saying that you did as asked, and consider the matter closed. That is, unless you WANT to be a troublemaker by insisting on having rights that you may not actually have.

Then, there is the matter of sheets in the LR or DR. The inspector is not going to write you up for missing smoke detectors unless THE UNIT IS MISSING REQUIRED SMOKE DETECTORS. Thats a serious violation, and if he does it, I am sure that you can find ways to expose him and cost him his job. (I had a similar situation with LAPD harassment, it took me two years to solve it, but I succeeded. The Division Commander (Devonshire Division, where we both live) was transferred to the Transit Police, and the city councilman declined to ruin again.). That your unit lacked required smoke detectors speaks for itself. Of all people, I expect YOU would know the rules for installing smoke detectors.

What you are doing is NOT fighting crap from "the system", its the system itself that you are fighting against, instead of learning how to deal with it.

Sorry if any of you misunderstood. The Housing inspector showed up early for a Systematic Code Inspection and wanted to go thru the units starting with #1 and ending up with #17, no number 13 (bad luck).

I told him that he was early and 2 units had no adults only minor children, but the mothers would be here by 12:00, in 15 minutes. Please skip #1 and #14 (from memory).

SO the INSPECTOR knocked on the tenant front door to number 1 and he said, "Immigration open up". So a 7 to 9 year old opened the door. The kid can not give legal consent.

SO I CALLED 911 and reported a person was pretending to be from Immigration and entered an apartment with minor girls, from 7 to 12.

The police showed up and the Code inspector said he never said "immigration" and I shoved him. So the police put hand cuffs on me and placed me under arrest -- as I laughed.

The police wanted to know was was so funny. I told them we've been having mail stolen so the smoke detector in the corner was really a video and audio recorder. So I took the police to my video closet off the hallway and played back my recording.

It showed me explaining that unit #1 had minor girls under 18 and their mom should be home soon, start with unit #2. And it caught the Code inspector knocking on the door and saying he was from immigration.

The police called the City Attorney who works with the police and I was released and they kept my take. No charges were filed against the code inspector.

I had an inspector who I had a great relationship and explained and showed proof how the City was mistaken. With the evidence he went to his boss, the head of the SCEP program and was given permission to fix things. The inspector called me back and said everything work be okay and he was allowed to fix it. I asked him for a letter and he said he was not allowed to write one but he was okay with me recording him over the phone. So he spent 5 minutes going over the details and how he got the boss to agreed, they made a major mistake.

We made an official appointment for a re-inspection, wiping off the first one and making this the official new and first one for the record. one.

Then on the date a new inspector showed up and had no knowledge this was the first inspection, as far as he was concerned, this was my final. I fail and had to pay a $250 fine.

I went to court. Got a real Judge. The new inspector, the head inspector and others said I was full of Sh_t!. Then never agreed to reset the clock and had no idea what I was talking about. So I had a surprise witness, my tape recording. They said it was unfair and I should no allowed to play the tape. It was rule inadmissible.

But little did they know I found the inspector that made the tape and he was tansferred to another city. I got my friend, a United States Attorney to attend the hearing.When that inspector showed up, the City and SCEP people wanted to pull the case. But I was suing and the US Attorney said if this City judge won't hear the case, he would bump it up to State Court. I won.

The next day my 4 unit in LA 90036 was inspected. My Duplex in 90036 was inspected. My 5 unit in 90004 and tow 8 units were also inspected. All failed. They did not know I was a licensed contractor with 6 trade licenses and both an A and B General. I also was Mold, Lead and Asbestos certified. On top of these State Licenses, I had both City and Federal ones too.

I hired a private firm, inspectors and contractors to do any necessary work. They found nothing! The City made it all up.

After that they had the police follow me trying to catch me making an illegal lane change or something. So one got tired an tired to say I was smoking pot, he smelled it. He forgot to ask me if I was carrying any weapons. So he asked me that magic question. I had to then tell him my car was wired with many camera's going live to a news crew a few blocks back. That his interactions were on live TV news. He ran for his life.

This is the crap I've had to deal with. Now that rent protections are going to March 01, 2024 and the SCEP inspections want to make me give tenants who haven't paid rent for years get new flooring, painting, blinds, appliances, etc --

I'M NOT GOING TO DO THAT WORK FOR FREE AND I'M NOT GOING TO PAY AN OVER PRICED CONTRACTOR VENDOR FOR SOMEONE WHO DOESN'T PAY RENT. And most of these tenants work making over $100,000 a year and paying around $1000 a month in rent.

THE systematic code enforcement program is a MONEY CASH COW FOR THE CITY, nothing else. It;s about if you can get the impossible done withing 10, 15 or 30 days, you will be fined and re-inspected. This time with a fine tooth comb.

When the City Housing Department and County Health Department ordered me to scrape off the ugly cottage cheese ceiling, I tired to explain the procedure, they would not have it. Within 10 days the ceiling had to be made smooth and re-painted, or I would be fined $500, then $1000 the following week.

Sorry that we might have "misunderstood".

YES. but your problem seems to be, How to interface with the bureaucracy.

Despite the lack of integrity, the dishonesty, the stupidity of workers, it is possible to make the relationship work, and by standing by your position (which MUST be correct), you can establish that they shouldn't do that again (at least not to you).

The secret is to force them to confront facts with evidence. If they try to tell you that you have one problem like toys on the stairs, then whip out your recorder, ANNOUNCE THAT THIS CONVERSATION IS BEING RECORDED, secure identification of the participants in the conversation, and ask him please to repeat what he said about their being toys on the stairs, that this a violation and thus he is writing you up for absent but required smoke detectors. If you fail on required smoke detectors, than this is not crap from SCEP, but a legitimate purpose from City Housing to ensure safety, and you need to comply. Check with Robert J of MrLandlord about advice for installation.

A little effort to expose fraud goes a long way to protect you. Once I got the goods on the LAPD Division commander, I wrote to the City Attorney, who was then embarrassed that he would look very bad if this ever got to court, and so I never received any reply but neither was I ever harassed by LAPD again and the Division Commander and the City Councilman got embarrassed and the Division Commander was appointed exactly 4 years later (statute of limitations) to Division Commander at Westside Division. I was content.

My 6 unit in Venice was across the alleyway from a eatery looking to expand, needed additional parking. So the owner made me an all cash offer, 50% below market (what I paid for the place a few years ago).

So the eatery paid off the City and Inspectors to rifle me with violations and complaints. The same thing goes on in Culver City and Los Angeles.

So I could not deal with them anymore and let it escalate to a real court -- judge couldn't be bought. So I was allowed to present me side, that my building was to code and there was nothing needed improvement. The City Inspector and his marry men agreed. So I presented a report done by myself as a "B" General Contractor. The Judge looked it over and the City of Venice said that the report had to be done by an "A" contractor, C-36 Plumbing Contractor and an C-10 Electrical Contractor too. So I took back the report and Signed my name as an A & B General, C36 Plumber and C10 Electrician. The judge was stunned and amazed. I also played him the footage of the owner of the eatery giving the City Inspector advice how to write up violations.

So no taking, negotiations will work when the system is corrupted. For 45 years I was able to get along and work things out. But 4 years of tenants not having to pay rent and the City now saying I have to Replace things that haven't even been fully depreciated because they were abused by the tenants. Things like appliances, floors, blinds, carpet, etc.

I am ready to fight back. Got to put my black belt to use.

After you have more experience, maybe you'll learn how to deal with these people better. ;)

Until then, we'll enjoy your interesting stories and see if we can pick out what is reality from what is story. It's so hard to tell with you...

The City used to have to listen. Today the City Attorney's office is there to protect the Housing Departments multi billion dollar holdings (it's a business), not there for the tenants or landlords.

Robert,

Just a suggestion......you can continue and try to ride out the real estate storm in LA County. There are multiple forces at play though. If your tenants aren't paying you, I would guess the neighbors' apartment is also not getting paid either. So will you be the comp or will the neighbor be the comp? Will it matter, if no one is getting paid?

That trend alone will drive down prices. The GRM method of valuation will just change the multiplier value.

On top of that bad trend, both net migration and natural migration are negative in SoCal currently. I am sure that will change back in due good time. With a decreasing population, it will be tougher to ride an when that population wave is leading downward.

The affordability index, that folks like Bruce Norris uses to keep track of market trends in SoCal is indicating prices have are decreasing.

With these three systems all negative, I would consider changing my investment objective from appreciation to cash flow. Where you might be able to create limited cash flow with some creativity. I shifted out of that market in 2005. I traded 13 SoCal units for 41 midwestern units. My cash flow tripled. Appreciation is a nice bonus, but cash flow is king. The SBA reports that lack of cash flow is the second most common reason why businesses fail. There is some appreciation, away from the coast - but it tends to be much more steady and forecastable.

In West Hollywood, I keep units Vacant once a tenant has moved out. There is a 70%+ chance of a tenant receiving notice from the City they need not pay rent, can't be evicted or sued.

I have lots of vacant units, but have surprises waiting for someone who chooses to break in and enter.

In the book Rich Dad, Poor Dad - how is your own labeled? It's not an asset unless it generates income, so they label it a liability. So what do you suppose they are going to call empty apartments?

In my eyes, a place is only worth the cash flow it generates. It can have lots of potential, be a diamond in the rough, have deferred maintenance or be worth XX more dollars sometime in the future - is it an alligator....a property with negative cash flow?

Robert J,

You are a friend of mine, at least in my head. I say as a friend that you need to take at least a couple of weeks of vacation and regain your sense of humor. Take that beautiful wife of yours far away, on a vacation to the opposite side of the country, to a foreign place, or on a long cruise.

All Bureaucrats have friends. Thats how they get elected: by having friends who will donate money, drum up votes, will do favors for the constituents so that they will vote favorably. So you've GOT to play THEIR game, not yours.

Their game is doing favors, getting money and more favors, so yours HAS TO BE to interrupt their system. Nothing does that like a scandal, backed up by evidence, and promoted up to higher authority.

Culver City isn't so bad. I had one complaint in 40 years (one oven of double-oven stove wouldn't lite, tenant called B&S without notifying me. Inspector reminded me that code says "all gas facilities in good, working order", that I needed to fix the stove, never wrote up a citation, invited me to call him if I ever had any questions ( did and he remembered me).

In Culver City, the Mayor is rotated from the Counsel members. A friend wanted to move his large Transmission Shop over there and got permission to obtain a building and make it into a Transmission shop. I got the contract, as a contractor, to do the electrical, air, gas and lighting.

After 2 years of doing great business, the City Revoked his business license and he had to move out. Then the City gave the business location to another Trans shop for some $$$$.

Sounds pretty strange to me.

Why did the City revoke his business license?

If there was some reason, than the city was perfectly entitled to issue a new license to another business, same business or not. Was there some reason for his business license to be revoked? A good reason? Like, he didn't renew his license, or follow conditions of the license? Noise, smells, nuisance, hours, even cheating customers?

I think that Culver City is pretty good on following the law. The local court belongs to the County, not the City,

your friend could have easily gotten any rights he really had, if he had gone to court.

Sounds pretty strange to me.

After we finished the Trans shop, we were invited by the Mayors SON, to his personal restaurant for a free meal. The Mayor son drank too much and spilled the beans. That entire downtown Culver City Block was under review by the City Counsel. The developer wanted to knock down the block and build a shopping Center Mall with a small high rise. So the City Counsel gave tentative approval, provided the developer buy all of the property and dispose of the occupants who rented. In a short period of time the developer got a loan and purchased everything. Then evicted the long term shop keepers.

They the developer went before the city Counsel to get the final approval. It was turned down so the developer filed for Chapter 13 bankruptcy.

The Culver City Counsel, under one of their LLC purchased the bankrupted development, will all of the buildings in tact.

The famous downtown eatery went to the mayors son, at no cost, the rest was divided up between counsel members. Making them a cool $30,000,000 in total.

I saw a small scale of the same in L.A. too, reported it to the Fed's who did zip!

I've seen mayors in LA take bribes. I had to pay my fair share for construction.

I had a general inspector hand me a STOP order, I just kept on working using my large generator at night. The police were called and I was told to stop or I would be arrested. I asked if they got their share of the bribe i PAID TO BE self inspection on the job. The inspector said I had no permit. THis was a job I was doing for my strip mall, in the street under my "A" and "C-36" licenses.

“Don’t get so busy making a living, that you forget to make a life.” — Dolly Parton

Incredible story, Robert.

I was driving in Culver City and approaching a very busy intersection of two major streets. There was construction and a large orange square sign, at a diamond angle, stating Construction a head. I stopped before the limit line and waited for cross traffic to clean. There was a "No Turn on Red" sign, covered up by the "construction sign". They cop had issued 70 plus tickets, a set up.

I had to go to court 4 times to only get it reduced in half.

That vacation would probably be a good idea, Robert.

Moshe, but when I tell the City that I can't complete my "too due list" from code enforcement withing the 30-60 day period, they will try to take those properties from me.

Like when tenants in the slum properties owned by the City of Los Angeles had original square flooring from the 20's an needed it replaced, the City the employed 11 full time floor guys to replace the thousands of old flooring.

Dear Robert:

Whats your point?

Is your point that Culver City is rotten and corrupt (I dont think so); or, that "the city" is forcing you to finish a job too early? or, that the city of Los Angeles employed 11 floor guys without letting you bid?

Or, is it because the SCEP inspector pointed out that toys on the stairs was a danger, and you don't want to bother with even a minimum response? Or that the inspector wrote you up for defective smoke detectors (even if he found something else, first)?

Or, a bunch of other stuff that seems to indicate that you just don't like dealing with inspectors who complicate your life, even when they are right?

Things work better if you go along in order to get along.

A hundred years ago (or so) I got a parking ticket in Culver City. The City had painted the roadway marking it off into parking spaces, and the next day, I parked there with my front tire less than a foot outside of the marking. Evidently, the Police checked and wrote me a ticket.

O MY GOD!!! What to do?

Actually, I took a photo of the tire and marking. LA County Courts (including traffic tickets) allow you to contest traffic tickets by declaration (or court if you insist), I sent the photo together with the ticket and my declaration together with the fine, and 6 weeks later, I got the fine back with a finding of NOT GUILTY.

You should have whipped out your camera, taken a picture of the hidden sign and mailed it in. Less muss, less fuss.

The world is not such a bad place as you seem to think.

Sure, there are corrupt politicians, corrupt policemen,

corrupt inspectors, but not as many as you seem to run into. If you lighten up your defenses, and stop & think about how to solve them, I think you will be more at peace with the world. Use your head. It is possible to fight City Hall when it is important, but if your starting point is that "The System" is corrupt and MUST BE DEFEATED, then you're going to spend a lot of time fighting, instead of vacationing.

Lack of sleep, dehydration, and urinary tract infections are common problems which cause people over 50 to become anxious and show signs of confusion. This can be mistaken for something more difficult to treat, so people don't seek help. The only symptom of a UTI may be an intense focus on something that makes a person more anxious, argumentative, agitated, or incomprehensible than they normally are. Routine tests at a doctor's office and a course of antibiotics can stop the spiraling almost overnight. If you have health insurance, the cost is a small copay for the doctor's visit and the antibiotics and a couple hours of your time.

Sounds like you? If you can jokingly refer to yourself as a raving lunatic, you can go quickly to a doctor's office or a local urgent care. It makes no sense to do preventative maintenance on a property and not do it on yourself.

Sounds like a friend? If you can contact them or their family directly, reach out and encourage that doctor's visit.

Untreated UTIs can kill you fast.

Thank those for your concerns. I have gone to my primary car doctors and yes, my BP was way up from all of the City inflicted Stress. In a few days I go back for the results of other tests.

But just to name a few issues, my tenant that Works in the entertainment industry wanted a new kitchen floor from the dinning area thru to the laundry room an bathroom. Almost half of her unit. So I purchased and picked up the material, like 1000 square feet. I had to store in empty unit close by. I had scheduled the installment to take between 2 to 3 days. I purchased water proof click vinyl goods. 1 day to install the flooring in the dinning area and kitchen and a second day to install in the tenants laundry room and bathroom. Then part of a 3rd day for the new baseboard molding.

The tenant and my assistant confirmed the appointment. Then the tenant cancelled. They we rescheduled and the tenant was going to be off that day so she then cancelled for the second time. Then the assistant canceled due to medical reasons. Then I cancelled due to pink eye.

The tenant called to complain to Housing, she's not getting her new floor.

I then installed the flooring in the vacant unit it was being stored in, and rented out the unit.

I told the Housing Department that this tenant has not had Rent increase in 7 years, saving her over $39,000 in rent.

She can afford to hire someone and replace the floors herself. If she doesn't like it she can move out.

Here in Los Angeles, when a tenant files a complaint with any of the City or County Departments, a case is opened up. The Departments start the red tape and fee's, fines and time tables.

In one case the prior owner of an apartment building pulled a $1,900 electrical permit to bring the exterior lighting up to code. One tenant didn't like the fact that when someone walked up her private walkway to her front door, at night a motion LED would turn on for 3 to 5 minutes. Costing around $60 per year in power.

When I purchased the property all departments reported no issues even thou there was this electrical battle doing on.

So the second day as owner the tenant told me about this electrical issue, he power being used to light up the exterior.

So I informed her of 3 solutions.

1) I put all of her power in my name, but that would be fair to me.

2) I could disconnected the light but this would be a health and safety nightmare. Walking in the dark!

3) Or I could measure the power being used and the pay her each month back, plus a profit.

SO I measured and estimated the power consumption to be around $4 per month, so I offered her $10 per month. Accepted.

Then at my Jury Trial for being a slumlord I proved to the Jury,

1. The violation, no permit is not a REAP violation.

2. I offered the tenant a solution,that was accepted.