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AB 828 Update – Learn More About the Move to Cut Rent by 25% In California

If you follow the Californian rental market, you know that there’s been plenty of activity this year on the rent control front thanks to the passage of AB 1482. This rent control measure became law in January, but that hasn’t stopped lawmakers from creating more rent control legislation including the Rental Affordability Act and AB 828.

Sadly, one would think that landlords in California have been through enough with everything that’s been done to impose rent control in this state. If AB 828 is approved, this would mean that the average landlord would be faced with dire economic consequences as any of their tenants could petition the courts to have their rents cut by 25% for one year.

What’s Happening with AB 828?

Right now, AB 828 is still moving forward through the Senate; it’s currently in the Rules Committee and this can mean that bill possibly gets postponed for several weeks while it’s debated.

Even though AB 828 continues to move forward, the California Apartment Association, and other groups that support landlords in California, have voiced their opposition of this bill and have been flooding lawmakers email and voicemail inboxes with messages opposing it.

There’s no denying that if this bill is approved it could bring a wide variety of catastrophic consequences for landlords in the state because landlords would have to absorb the economic losses and this would affect their businesses.

To voice your opposition to this bill, we encourage you to contact our lawmakers today and let them know that passing AB 828 would only further hurt the struggling rental market and make it more difficult for landlords and tenants alike.

Contact Golden west management

To learn more about the property management services that we can offer you, contact us today by clicking here.

Is now the right time to buy an investment property?

In May 2020, investors are poised to capitalize on one of the best buying opportunities in 10 years. Why? Coronavirus has left an impact on the rental market, and some owners may be willing to sell their properties for under market value, right now, or in the next 4-8 months.

Capitalize on Economic Opportunity

Even though the media often reports on the coming economic recession with fear, the reality is that most people who were investors during the “Great Recession” (2007-2009) know that the last downturn offered substantial opportunities for them to add properties that were under market value to their portfolios.

If you have cash reserves, now is a great time to start searching for deals in the real estate market, or you may want to wait for six months (or longer) until the next recession in the United States begins.

Don’t want to buy another rental property? Why not add an Accessory Dwelling Unit (ADU) to your property instead? ADU’s are another great way for homeowners to add equity to their properties while also generating rental income as well.

As David Stein of Principal Equity Group said in a recent GWM interview, the City of San Diego is making it easy for homeowners to add ADU’s to their properties. How? Besides streamlining the permit process, they also have three different sets of ADU plans available that will save homeowners the cost of having to pay an architect for a set of plans.

Besides helping to increase the value of your property, when you add an ADU, you’re also supporting the local economy as well, including contractors, painters, plumbers, and other companies that will work on your ADU.

Contact Golden west management

To learn more about the rental market in San Diego, Phoenix or Las Vegas, or speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

What is AB 828?

With the COVID-19 pandemic having affected everyone in California, lawmakers have been working overtime to create more legislation to protect tenants, including their latest proposal, AB 828.

What is AB 828? If passed, this bill would enable tenants to petition the courts to cut their rents by 25%, and they wouldn’t have to show cause for the rent reduction.

Would Hurt The California Rental Market

There’s no denying that many tenants in California need help with paying their rents because of the simple fact that if a tenant isn’t working, or they recently lost their jobs, they may be unable to pay their rents as before.

The good news is that even though California lawmakers have been drafting legislation to address the problem of rent payments in California, landlords and tenants have already been working together to ensure that tenants can pay their rents and stay in their rental properties.

For example, in a Zoom meeting with Brad Seaman and Justin Isaacs, Jayson Yoss, President of GoldenWest Management confirmed that less than 5% of GWM residents, in the 2nd month of quarantine, have been unable to pay their rents and less than 22% of residents have had to go into a payment plan or require a discount on their leases.

This is excellent news considering the “doom and gloom” being reported in the media on an hourly basis of how Coronavirus is affecting the economy and the rental market.

In the Zoom meeting, Jayson Yoss also confirmed that vacancies at GoldenWest Management are currently at 2%-3% as well. He sees the rental market as remaining “robust” despite the challenges posed by Coronavirus.

Why AB 828 Is Bad for Business

Even though some tenant’s rights groups may support AB 828, the reality is that if the state were to ask a restaurant like McDonald’s or a grocery store like Albertsons to cut their prices by 25%, this move would hurt that business financially and ultimately lead to their closures.

Sadly, when it comes to landlords in California, some lawmakers are under the assumption that landlords can “take it on the chin” and absorb a 25% rent reduction without any problem.

The truth about a rent reduction is that it will be especially harmful to landlords who only own one or more rental properties and rely on the income from rent to cover their expenses.

AB 828 also creates a possible due process violation, or constitutional argument, because it’s also possible that if approved, it would impede a tenant’s ability to enter into an executed contract.

Contact GoldenWest Management

To learn more about AB 828, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

California Lawmakers Seek to Suspend Costa Hawkins

In the latest rental market news, lawmakers in California are seeking to pressure Governor Gavin Newsome to suspend Costa Hawkins, the 1995 Rental Housing Act.

How? There is currently a new bill on the November 2020 ballot called the Rental Affordability Act which seeks to expand rent control in California but the sponsors of this bill have stated that they will withdraw it “in the spirit of cooperation” if the Governor suspends Costa Hawkins.

Costa Hawkins Has Been Under Fire Since Day One

The latest attack on Costa Hawkins is nothing new in California considering that the law has literally been under fire since the day that it was passed back in 1995.

As recently as November 2018, a bill titled the Affordable Housing Act sought to suspend Costa Hawkins, but it was defeated by voters.

With COVID-19 leaving a major impact on California’s economy, and rental market, millions of people in the state are now unemployed so it’s easy to see why Costa Hawkins is in the sights of lawmakers.

There’s no doubt that the state faces hard choices since there potentially are millions of renters who won’t be able to pay their rents in the months ahead but is suspending Costa Hawkins the answer?

State-wide rent control was already passed into law last year when the Governor signed AB 1482, a law that caps limits rent increases at 5% per year plus inflation until January 2030, but most politicians in the state feel that California isn’t doing enough to protect renters.

As we get closer to November 2020, momentum will continue to build in support of the Rental Affordability Act and unless Governor Newsom suspends Costa Hawkins, we can expect this bill to be on the ballot for the November 2020 election.

What’s Next?

The best thing that voters in California can do is to educate themselves on the perils of pushing for more rent control in the state because eliminating Costa Hawkins, or passing the Rental Affordability Act, will only produce dire economic consequences in California that will last for years to come.

Even though the rental market in California needs massive change, the key to that change isn’t rent control.

What most people who support rent control measures don’t know is that rent control has a history of failure in every state that it’s been implemented.

Any time rent control is passed, supply always dries up and builders will not build more rental units because they are turned away by price controls.

California has a supply and demand problem that will not improve until more rentals are built state wide to meet the demand of renters.

Contact GoldenWest Management

To learn more about the property management services that we can offer you contact us today by calling (866) 545-5303, or click here to connect with us online.

How Does GoldenWest Management Show Properties While Following Social Distancing?

One of the most challenging things that landlords across the United States have had to deal with since the start of Coronavirus is how to continue showing rental properties as normal while following social distancing rules at the same time.

The good news is that at GoldenWest Management, we utilize the latest technology which enable us to continue with managing rental properties as before while following social distancing.

We’ve Partnered With Rently

Thanks to our partnership with rently.com, we can continue showing properties as we did before Coronavirus without any of our property managers having to be physically present to show a property to a prospective tenant.

How does rently.com work? It’s an easy process that involves a prospective tenant entering their driver’s license and credit card information to auto-register for a showing.

Once the prospective tenant auto-registers for a showing, the owner or landlord will know the day and time for the showing and they will also be notified when the individual shows up plus when they leave the property so that there isn’t any question about if they actually followed through with the showing or not.

What’s even better about Rently is that when a prospective renter enters their credit card information, the owner of the property is insured for up to $10,000. This will give owners confidence that they are protected financially if the person touring the property does damage to it.

What Happens After A Prospective Tenant Self Tours A Property?

After a prospective tenant self-tours a property, we also use digital documents including digital rental applications and lease documents so that face-to-face contact can be avoided and social distancing guidelines are enforced during the lockdown.

Our tenants can also pay their rents online, this also ensures that we don’t have to have physical contact with tenants while also enabling the process of rent collection to be done quickly and efficiently.

To learn more about the property management services that we can offer you contact us today by calling (866) 545-5303 or connect with us online.

California Rental Market News

There’s no doubt that California landlords have had a rough year in 2020 which started on January 1st when AB 1482, California’s “defacto” rent control bill was passed.

Following AB 1482, came Coronavirus, the deadly virus that’s impacted the entire world and has taken the lives of hundreds of thousands of people worldwide and shut down the California economy.

Sadly, COVID-19 has also been responsible for unprecedented unemployment in California and millions of renters across the state being unable to pay their rents.

With everything that’s happening due to the virus, you’d think that landlords have enough to deal with but, landlords have another issue on the horizon in the form of a new bill that’s been proposed, AB 828.

A row of new townhouses or condominiums.

What Is AB 828?

Proposed by Assemblyman Phil Ting, of San Francisco, if approved, AB 828 would force landlords in the State of California to reduce rents by 25%.

This bill has left every landlord in the state of California scratching their heads because of the obvious fact that AB 1482 already puts robust rent control measures in place so why do we need more legislation that’s only going to adversely impact landlords even more?

If it’s passed, AB 828 would force landlords to reduce rents by 25%, even if a tenant can’t show that they’ve had a financial hardship due to Coronavirus. This bill would also allow the courts to set rents and change agreements that are already in place.

What’s even worse is that under AB 828, nuisance tenants would also be protected by this bill and landlords would not have the ability to do things that they’ve done in the past like file unlawful detainer complaints.

How Can AB 828 Be Stopped?

Thankfully, as long as California is part of the United States, every person who lives in the state has the right to reach out to their elected representatives and have their voice heard.

To stop AB 828, landlords across the state are encouraged to reach out to their elected representatives as soon as possible and do their parts to stop this legislation from being passed.

Contact GoldenWest Management

To learn more about AB 828, or to speak with us about our property management services, contact us today at (866) 545-5303 or click here to connect with us online.

How Is Coronavirus Affecting the Short-Term Rental Market?

It doesn’t matter if you own a short-term rental property like an Airbnb, in San Diego, Phoenix, or Las Vegas, the outcome following during coronavirus has been the same.

In every city as bookings have stopped, and the short-term rental market has been hit hard, because people have been staying home for the last 60 days due to Coronavirus and the once stable short term rental income that Airbnb hosts and other short term rental owners could depend on is no longer coming in.

What does the future hold for owners who have short term investment properties? The answer is simple, Investors who own short-term rental properties like Airbnb’s should consider converting those short-term rentals into long-term rentals.

Long Term Rentals Are the Way to Go

Yes, even though lockdowns are projected to end within the coming month or so nationwide, the overall fear of getting infected with coronavirus is not going to leave the mindset of the general public anytime soon. This along with possible “rolling lockdowns” in the coming months means that short-term bookings may be affected for the next six months to one year.

Thankfully, owners who convert their short-term rental properties into long-term rentals can keep those properties cash flow during the 90-120 days while they wait for the short-term rental market to get back to where it was before coronavirus and the current economic crisis.

Converting a short-term rental to a long-term property is a better choice than just letting a property sit vacant for up to another month.

Long term rental properties are also a safer option that provides less risk for landlords as well.

GoldenWest Management Can Help!

Hiring a property management company like GoldenWest Management is the key to success with owning a long-term rental property because it will save an owner the time, money, and hassle of having to manage that rental property themselves

To learn more about the property management services that we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.

What Can Las Vegas Landlords Do to Help Their Tenants?

With the Las Vegas economy shutdown since early March, landlords in Las Vegas are feeling the economic effects of coronavirus since it’s estimated that 30 to 40 percent of Vegas residents are unemployed and may be unable to pay their rents.

The big question is what can owners do to help their tenants while the lockdown persists and the economy is paused?

In this article, we will answer this question and provide tips for how owners can survive the coming months until people start going back to work, and businesses start getting back to normal.

Landlords Should Contact Their Lenders Immediately

One of the most constructive things that landlords in Las Vegas should do right now is to contact their lenders to see if they qualify for forbearance, if they will be unable to make their April mortgage payments.

If a landlord can make their April payments, they should still consider refinancing their existing loans anyway to take advantage of historically low interest rates, or applying for a home equity line of credit (HELOC) for one or more of their rental properties.

Refinancing, or applying for a HELOC, will enable landlords to potentially have access to cash that they can use for building cash reserves which will enable them to have a financial “buffer” to weather the coming months.

Communicate with Tenants

Since evictions are suspended in Nevada until the Governor’s recent emergency declaration is lifted, landlords in Las Vegas should do everything they can to work things out with their tenants.

Tenants should be encouraged to pay their landlord some money now towards their rent while agreeing to catch up and pay the remaining balance over up to 12 months.

Landlords should also encourage their tenants to utilize the programs that are available to them including unemployment. If the tenant is a taxpayer, they should be made aware of the pending Federal Stimulus payment that they will be receiving within the coming weeks as well.

Contact GoldenWest Management

To learn more about the Las Vegas Rental Market, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here.

What Are Landlords and Tenants Supposed to Do About Rent?

In the last 30 days, coronavirus has been responsible for changing the economy and rental market across the United States because most people who were renting before coronavirus, and working steadily, are now laid off and may be unable to pay their rents.

This is a problem that every city in the United States is facing right now, especially in cities like Las Vegas that rely heavily on the tourism industry.

Even though landlords and tenants may face difficult times ahead, some solutions can be utilized to help them make it through the coming months.

We’re All in This Together

During a recent interview, HUD Chairman Dr. Ben Carson said that both landlords and tenants are going to have to work together to make it through the coming months as coronavirus has affected everyone in some way.

What does this mean? Tenants should contact their landlords immediately if they are unable to pay their rent and work out a payment plan so that they can pay the landlord some money now, while deferring the remaining balance on their rent over 12 months.

Every Situation Will Be Different

Every tenant’s situation is going to be unique following coronavirus, there may be some tenants who will be able to go back to work next month while others may not be able to work for another 6 months.

Landlords should be willing to work with their tenants to come up with the best solution for them that will help them to make it through the coming months.

What Should Owners Do with No Revenue Coming In?

Owners should contact their lenders immediately if they are unable to pay their April mortgage to see if they qualify for a forbearance, or they should pursue one of the other ways to build cash reserves that we mentioned in our previous blog post.

Many people are projecting that Coronavirus could last until June so every owner must take action now and be willing to work with their tenants while they focus on building cash reserves so they can survive the coming months.

Rental Market Projections for The Next 60-90 Days

At GoldenWest Management we project that 20% to 30% of tenants will not be able to pay all or a portion of their rent while there may be tenants who are unable to pay rent and will want to turn in their keys to their landlords.

April and May are going to be tough months for owners and tenants for sure, we hope that coronavirus will be gone by June and the economy will be back on track but that may not be the case if the virus lasts into the summer months.

We encourage both owners and tenants to stay on top of what’s happening by following our blog and other trustworthy news sources like local city news or information from organizations like the Department of Housing and Urban Development.

For questions about what’s happening in the rental market, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or connect with us online.

Eviction Moratorium San Diego – Learn More About How Renters Are Protected During Coronavirus

Coronavirus has changed the economy and rental market in the last month because tenants that were once able to pay their rents on time are now unable to pay rent since they have little to no income coming in.

Thankfully, the City of San Diego passed a moratorium on evictions which means that any tenant who is facing eviction because they cannot pay their rent will be protected from eviction

The Eviction Moratorium Will Last Until May 31st, 2020

Tenants who are unable to pay their rent must notify their landlords immediately, and provide proof of their financial hardship as well via email or text since the city considers those to be valid forms of written notice.

Besides notifying their landlords that they are unable to pay rent, San Diego area tenants must also provide their landlords with financial documentation which shows they are unable to pay rent due to coronavirus (COVID-19).

The financial documentation that a tenant should provide their landlord with may include bank statements that show a loss of income or documentation which shows that they’ve had to pay significant out of pocket expenses related to coronavirus.

Any tenant who doesn’t notify their landlord that they are unable to pay rent within one week of its due date, the landlord may move forward with enforcement actions or eviction proceedings that are in accordance with state and local laws.

How Long Do Tenants Have To Pay Back The Rent?

Any tenant who is protected by the City of San Diego’s eviction moratorium will still have to pay back the back rent that they owe within 6 months, or longer if the deadline is extended by the Governor.

If a tenant moves out before paying the back rent that they owe, they will legally be required to pay what they owe when they move out unless their lease states otherwise.

Contact GoldenWest Management

At GoldenWest Management we understand the challenges of these times and are here to help!

For more information about what’s happening with the local rental market, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.