It’s a new year, which means new laws have passed, and a few that directly impact landlords. There are currently two eviction moratoriums in Los Angeles, one for the City and one for the County. A few weeks ago, the county law officials have decided to extend the expiration date of the moratorium to January 31, 2023, with no guarantee that it will remain on this date.
[Read more…]What the 5th Federal Reserve Rate Increase Means for Investors
As of September 21, the Federal Reserve has raised its overnight rate by 75 basis points, which now positions the rate in the 3% to 3.25% range. Headline inflation is reported at 8.6%, and core inflation is reported at 6.3% with “no signs that inflation is going to come down, yet.” What does this mean for investors in Commercial Real Estate?
[Read more…]How the New Stimulus Will Impact Commercial & Investment Real Estate
On Wednesday, March 10, the House passed the final version of the $1.9 Trillion stimulus package which includes $1,400 direct checks, unemployment bonuses, and money for vaccines. Here is how it could impact the commercial and investment sectors of real estate.
[Read more…]A Landlord’s Guide to Rent Control in Los Angeles
“Rent control” in the narrowest sense refers to city or county ordinances that limit the amount a landlord could increase rents every year. We have obtained useful information from Equitypro Management, our property management division, to share the details of each area of L.A. County and their respective rent control laws.
[Read more…]SoCal CRE Activity Could Return to “Normalcy” By Summer
The Southern California CRE could return to normalcy by the summer, according to SoCal NAIOP CEO Tim Jemal, who sees a light at the end of the tunnel, thanks to the vaccine rollout and improving market fundamentals.
[Read more…]Build-to-Rent Makes Its Way Into the Single-Family Market
As the pandemic continues with the current housing shortage, major real estate companies such as LennarCorp. are making their way into the single-family rental market.
[Read more…]Online Payments Increase Likelihood of Rent Collections
“The number of rent payments received by landlords and property managers nationwide has been declining as tenants across the country continue to struggle to pay rent. However, it is clear that online rent payment options have increased the likelihood of tenants paying rent on time”, said Rentec Direct.
[Read more…]California COVID Eviction Moratorium Extended Through June 30, 2021
On Friday, January 29, 2021, Governor Gavin Newsom signed legislation SB-91 which extends the eviction moratorium that was originally set to expire on January 31, 2021. The new expiration date for the moratorium is now June 30, 2021. This brings a new set of requirements to property owners and renters facing eviction.
[Read more…]Building an Accessory Dwelling Unit (ADU) in 2021
With the current housing shortage in California, the state has released a new set of laws that have made it easier to build an ADU (Accessory Dwelling Unit). Many property owners have begun building ADUs as it brings forward another stream of income.
[Read more…]Single-Family Homes Sell Faster and at Higher Prices Than Condos
According to a Redfin analysis, single-family homes sold at an average price point 17.3% higher than the average condo. That is a $58,000 difference in price.
[Read more…]Single-Family Housing Market Continues Upward Growth During the Pandemic
Despite the pandemic, houses in the single-family market continue to be sold at above listing prices, and construction firms cannot keep up with the demand.
[Read more…]A Shift in College Student Living Impacts Various Sectors of Commercial Real Estate
As a result of job losses and closures of colleges, the number of young adults from ages 18 to 34 who live with parents or relatives spiked to 27.7 million in June. The number dropped down to 25 million in September, however the number is still above the prior four-year average.
[Read more…]2020 Presidential Election: Policy Implication for Commercial Real Estate
Depending on the outcome of the election, new economic policies will make their way through congress. However, the question of if these policies get passed will depend heavily on the result of several congressional races. If the Democratic Party holds on to a majority of seats in the House of Representatives while the Republican Party maintains its slim hold over the Senate, then it is unlikely any substantial new legislation will be passed regardless of who sits in the Oval Office.
The electoral outcome that will most likely come with significant change will be if Biden is elected to the executive office and the Democratic Party obtains a majority in both houses of Congress.
[Read more…]California Proposition 21 Could Place Significant Restrictions on Apartments; Thousands of Additional Units May Face Rent Control for the First Time
Rent & vacancy control is on the upcoming November ballot. The proposed change alters how rents are adjusted during tenant turnover.
[Read more…]Senior Housing Facing Uneven Recovery; Demand Drivers Sustain Positive Outlook
The current COVID-19 pandemic has caused lifestyle changes that will leave an impact on daily operations, safety protocols and community design. The well-being of residents and front-line staff remain the top priority of operators, many of which are fatigued by budgetary pressures, workforce shortages and limitations to social interactions. However, as the care needs of the aging population continues to grow, long-term prospects for the senior sector remain positive.
[Read more…]November Initiative Has Potential to Raise Taxes Dramatically; Split Roll Tax Would Have Significant Impact on Commercial Real Estate
If passed, Proposition 15 will require counties to reassess most commercial properties every three years and be taxed at market value rather than purchase price. Proceeds from the new tax structure are estimated to range from as low as $8 billion, to as high as $12 billion, and the funds would mostly be distributed to local communities and school districts. If the proposition is passed, properties that have been owned for more than 20 years could face double the tax obligation.
[Read more…]AB 3088-Covid-19 Tenant Relief Act of 2020
Evictions Under the COVID-19 Tenant Relief Act
Under AB 3088, tenants cannot be evicted for nonpayment due to COVID-19 related hardship between March 1 – August 31, 2020 given that the tenant provides a declaration of hardship within 3 days of receiving a notice to pay or quit. This has now been extended from September 1, 2020 – January 31, 2021, with an amendment; during this time period tenants cannot be evicted for nonpayment due to COVID-19 related hardship if the tenant returns a declaration of hardship within 15 days of receiving a notice to pay or quit. However, tenants must pay 25% of the missed rents for that period by January 31, 2021.
[Read more…]Repeal of Costa-Hawkins on CA Ballot: Proposition 21 Has Potential to Reshape Multifamily Housing
Under Proposition 21, vacancy control will be introduced in areas with rent control as Costa-Hawkins is repealed. Units that were exempt from local rent control laws due to Costa-Hawkins, for example in Los Angeles and San Francisco where the city was not able to enforce rent control on properties 15 years or older, will no longer enjoy those exceptions and permanent rent caps can be installed. The initiative will now limit the rise in rents to 15% during the first three years (5% per year) of a new tenancy in addition to increases allowed by local ordinances.
[Read more…]Retail Sales Research Brief
Retail sales from the U.S. Census give an insight into the pace of the economic expansion without additional support from the legislative branch. Retail sales have increased in August to a new high by 0.6%. In addition, unemployment benefits that reached accounts in September may provide a boost in national sales through the month of September.
[Read more…]Government Stimulus Softened the Blow from the Pandemic, But True Impact of the Health Crisis May Come If Support Subsides
Starting during the second quarter and through July, people filed unemployment at a record pace. Despite the hardship of many people out of work, rent collections exceeded expectations. This is due to the federal government’s supplement of $600 per week in unemployment checks. For some this meant gaining more than they usually would from their normal paycheck. However, the unemployment supplement expired at the end of July, and Congress has yet to introduce new benefits to those going through hardships. Without any federal supplements, rent collections may begin to fall.
[Read more…]Health Crisis Presents Array of Challenges to West Coast Economies, Which Could Lead to Lasting Disruption for Property Markets
The West Coast has taken a more pragmatic approach to managing the pandemic, staying under lockdown for longer durations than other states, while also implementing statewide and local measures that support tenants and businesses.
[Read more…]Single-Family Housing Market Following Positive Trajectory; New and Existing Homes Facing Distinct Challenges
Despite the health crisis continuing to interfere with daily life, the market for single family homes is showing clear signs of improvement. As interest rates are down, and many months of sheltering in place, people have been reminded about the advantages of single-family homes.
[Read more…]Executive Orders Aim to Ease Fallout of Stimulus Gridlock; Implementation Hurdles Could Stall Relief
President Trump has signed several executive orders in response to Congress’ lack of progress on another stimulus package to boost the ailing economy to provide funds for those impacted by the pandemic. However, the question of when and how these orders will be enacted is still up for debate.
[Read more…]