For anyone here who spends time in the value add multifamily segment in California, are there any mechanisms available to landlords, outside of tenant buyouts, to vacate a property for the purpose of doing a full rehab and re-tenanting?
With AB1482, I had heard that there were "substantial renovation" loopholes which owners were using to legally empty out a building without having to issue massive relocation checks to the tenants.
| +82 | LP coming into deal at higher land basis. How to model returns to GP? | 19 | 4h | |
| +76 | Increasing RE Industry's Cash Compensation, Collectively | 43 | 1d | |
| +73 | Major Decisions | 13 | 2d | |
| +44 | Being asked to stay behind and train my replacement | 11 | 1h | |
| +33 | Niche down to an operator or stay an allocator | 11 | 2h | |
| +24 | Breaking into CRE late 20s | 7 | 4d | |
| +23 | Thoughts on joining an early-stage REPE fund | 7 | 1d | |
| +22 | Self Storage ECRI | 9 | 3d | |
| +20 | How to get good at RE Modelling? | 18 | 5h | |
| +20 | Public Homebuilders | 7 | 3s |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Interesting bump
Are you talking about properties subject to statewide rent control or the more restrictive LA RSO?
I am referring to AB 1482. Los Angeles RSO, from what I have been told by numerous LA local landlords, is becoming almost impossible to generate value returns on unless you are a generational long term hold investor looking at 10+ year horizons.
Cash for keys is really the only tactic available. It’s also the generational friends and family capital w buy and hold strategies that do this. I’ve also seen S8 tenants get cycled around into renovated units to maximize their S8 w a new app (almost always gets approved bc improved living) and vacates units to be set to market post renovation.
Hic minima ipsum nulla expedita et. Maxime possimus nobis possimus asperiores voluptatum libero. Quia sit odio voluptatem excepturi laudantium et est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...