Q: My tenant has not been affected by COVID-19 and their failure to pay rent is not related to COVID-19. They gave me a Declaration of COVID-19 Related Financial Distress. Does my tenant have to prove that they are affected by COVID-19? A: No, currently there is no requirement for the tenant to prove they…
DetailsProperty owners maximize their cash flow by having their buildings fully leased with minimum expenses. Does this mean that landlords should never fix anything in order to keep cash flow high? In case you were wondering, the question is rhetorical. Repairs and maintenance do not happen in a vacuum and ignoring them causes a “fix…
DetailsThe Tenant Relief Act was to end rent protections for tenants commencing with rent owed on Did You Know February 1, 2021. Under the original statute, a standard 3-Day Notice to Pay Rent or Quit could be served and an eviction could thereafter be filed. Unfortunately, on January 29, 2021 the Governor and the State…
DetailsThe following information explains Iten V. County of Los Angeles, a federal lawsuit filed by Pacific Legal Foundation to defend constitutional property protections. It is reprinted here with permission. Howard Iten is a retired auto mechanic who greatly depends on rental income from his one commercial property in Lawndale, California. His current tenant, however, is an…
DetailsDelays and backlogs in criminal and civil cases are spreading throughout California’s court system. Half as many cases were resolved — 1.4 million fewer — from March through August last year than during the same period in 2019, according to a report the state judicial branch’s administration put together. No one knows how many thousands of cases…
DetailsNet operating income (NOI) is the driver of value in real estate investing. Unfortunately, for many properties during COVID, the NOI has been capitated due to the mandated residential eviction moratoria (City, State, Federal), that run through the end of 2020. In 2021, as tenants find their footing and figure out how to pay rent, owners…
Details“Is that your final answer?” You may recognize the question made famous by the popular TV game show Who Wants to Be a Millionaire? Choosing the right answer in this game gives you a shot at winning big money, while the wrong answer leaves you with nothing. Investors conducting a 1031 Exchange face a similar…
DetailsAB 3088 permits owners to proceed to Small Claims Court for the collection of back rent or other rental deficit damages. A Plaintiff may not appeal from a Small Claims Court award, ruling decision or judgment. It seems so simple and safe, right? Be careful. The Trial The Tenant Protection or eviction groups are going…
DetailsThe recent passage of Prop 19 eliminates the parent-child and grandparent-grandchild exclusion from reassessment for properties other than a “family home.” As of February 16, 2021, if you transfer your property to your children (or, grandchildren, if the parents are deceased), via any means (gifts, sale, hybrid, estate plan after your passing, etc.) that property…
DetailsMaintenance issues are all urgent now. Landlords’ cannot wait for the COVID vaccine to replace a burnt-out light bulb in the laundry room. A broken toilet can no longer be fixed when someone gets back from work at 5 p.m. It needs to be fixed NOW. Everyone is home. We rarely need to make an…
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