It was very much a pleasure meeting Irma over the phone this morning and thank you for being so helpful and pleasant and I certainly appreciated your patience with me. You are certainly an excellent asset to your company and I commend them for recognizing how good you are and asked you to join this organization.
I wish you a very good remainder of this week and a safe and fun weekend ahead.
Kind regards, Shari
Letter Sent to L.A. City Council members…
The Proposed Tenant Anti-Harassment Regulation is a “Joke.” Our elected officials in the City of Los Angeles continually punish owners of rental units in favor of tenants. The tenant has control of the unit while they reside there and either respect the property and the landlord or disrespect the property. The landlord has to fix the unit that was either damaged through usual wear and tear or maliciously damaged by the tenant. I personally have been a landlord for many years and have had mutual respect for my tenants as they have had for me. But every once in a while, a bad tenant rents and does a lot of damage and then moves on. In my years, I have had just a few tenants in this category. But the cost to me in one rental unit was approximately $70,000. My question to the City Council is, why didn’t anyone from the City of Los Angeles help ME financially? So, if this regulation passes, what you are proposing is that the tenant can do anything he wants to the property and then say “I am being harassed”, with just an allegation and no support to substantiate the claim, and therefore the landlord is punished with a steep fine.
Letter Sent to L.A. City Council members …
Councilmembers of Los Angeles:
Applicants often ask me why rent is so high in Los Angeles. the answer is simple: Because tenants will pay!
We manage hundreds of units across Los Angeles and as a former loan underwriter we set our maximum DTI to 35% for all new renters. If your DTI is over 35%, we do not rent to you as you would be rent-burdened. When I moved to LA 20 years ago, I lived by this principal and it has served me well. The problem is that today’s generation of renters does not honor this principal. They will gladly pay whatever it takes to rent in the area they want to rent and as such landlords have been able to drive up prices for new leases.
I cannot tell you how many applicants we have reviewed where they may be at 50% or higher DTI and not have enough savings on hand to make 1st month rent and deposit. These same applicants demand to rent our apartments after we have declined them. Many even get very angry at us. This is what propagates increasing rent growth in Los Angeles and other cities. If the buyer will pay more the market will gladly accept.
We (Vesa Commercial) do not accept more because we know that rent burdened residents are much more likely to end up in collections and evicted. This, to us, does not make business sense. We realize however that most landlords may not operate this way.
An Immediate Yet Radical Solution to Solve Affordability And Eliminate Evictions for Non-Payment of Rent – FHA loans on homes have strict guidelines when related to both credit and Debt to Income Ratios. A Market Driven Approach to affordable housing would enforce underwriting guidelines on all Rent Controlled apartments, limiting DTI to 35-38%. The RSO could have a standardized application process whereby all persons wishing to rent a Rent Controlled unit in Los Angeles would complete ONE application through the RSO and be approved for a certain dollar amount. They would then have a voucher that they could present when applying to rent an apartment in Los Angeles. The resident would be able to apply for any apartment up to the approved dollar amount. The City of LA would then guarantee rent payments. Tenants would apply annually for renewal under the program. If a tenant could not pay due to financial distress the city would make the rent payments (or supplement them) until the tenant landed back on their feet. This would eliminate evictions due to non-payment of rent.
The Problem with Placing a Floor on Rent Increases –As for rent increases, many times we have residents in rent-controlled units who are substantially at market rate and we do not pass on the allowable rent increase. The reality is however, that close to 50% of our residents in rent-controlled units may be at 50-75% of market rent. In many cases, we may be losing money renting to these residents. If you are going to enact a floor on rent increases it should be equitable. This would mean, perhaps placing the floor on units occupied for X years or less. This will allow landlords to continue to slowly bring those units that are substantially below market up to market rent.
A Long-Term Solution –We need more housing. Economics 101 teaches supply and demand metrics and we all know that if there were enough housing units to meet demand then prices would decline. The entanglements of zoning and neighborhood council controls and prohibitive legislation are aimed at preserving the status quo which limits inventory and pushes up housing prices as more and more people move to Los Angeles. This is a larger problem and does not immediately satiate the cries of foul play on part of renters for affordable housing. For every developer attempting to add housing there are hundreds, and in the recent case of a Lincoln Heights development, thousands of opponents speaking out in opposition. The residents of Los Angeles cannot have it both ways. They cannot, on one hand, refuse more housing, and on the other, demand what housing is here be provided at reduced rates.
Government Intervention – Socialized housing through Section 8 Voucher programs: Forcing landlords’ hands by dictating revenue growth while not controlling expenses is not the answer. Needs based assistance allows the government to decide those who are in need and provide assistance via vouchers to obtain housing. The Sec 8 program determines the need using a DTI formula. More Sec 8 Vouchers in Los Angeles will assist those most in need while allowing landlords to continue to operate in a free market without making landlords the private solution to a public issue. Sincerely, Matthew Parrish
Email Sent to L.A. City Council members …
Dear Los Angeles Council Members:
My name is Robin and I am a Los Angeles housing provider, owning a rent control aka welfare Apartment Building.
This email is regarding Council Member Mike Bonin’s “RIDICULOUS” proposal to eliminate the 3 percent floor on rent increases for Apartment Building Owners.
I apologize for not sending this email sooner but I was busy with an appliance repair service person fixing a tenant’s refrigerator costing me over $400.00. Just some of the expenses to be paid by me and other apartment building owners. Apartment building owners who currently are NOT allowed to collect their rent or just collect a percentage of their rent. On top of owners being “FORCED” to spend thousands and thousands and thousands of dollars on SEISMIC RETROFITS. And … given a yearly increase in property taxes in 2020 during a pandemic with a ZERO yearly rent increase NOT allowed in 2020 and most likely not allowed during 2021. And now it’s being proposed by Council Member Mike Bonin to take away the 3 percent floor on rent increases. REALLY -PURE INSANITY!!
I am a native Californian born and raised in Los Angeles, involved in the housing industry for decades and decades. Of all the years I lived on the Westside, (W.L.A.) never have I exited the 405 freeway at Wilshire Blvd. “west” and seen homeless people take up entire blocks of sidewalks with tents and their belongings as we see currently. IT IS SHAMEFUL!!!!
What Council Member Mike Bonin has done to the Westside is “DESPICABLE”. Residential single-family homeowners, condo owners and apartment building owners are fed up with Council Member Mike Bonin. Brentwood, Del Rey, Ladera, Mar Vista, Pacific Palisades, Playa Del Rey, Playa Vista, Venice, West Los Angeles, Sawtelle and Westchester all under the care of Council Member Mike Bonin and the homeless situation is worst then ever!!!!!!
Council Member Mike Bonin needs to be recalled. He does NOT know anything about being a housing provider.
I have had enough of Council Member Mike Bonin’s dog and pony circus act.
Personally, I am so fed up with the “DISCRIMINATION” against apartment building owners who have privately purchased their property and are constantly being put under ridiculous rules and regulations that I am ready to start a class action lawsuit!!
The way I see it, being a college educated person, RSO 1978 and older apartment buildings need a “5 percent or more” floor on rent increases since being “FORCED” to do expensive Seismic Retrofits and all the other expenses older buildings require.
“5 PERCENT OR MORE FLOOR ON RENT INCREASES”!
The CPI has “NOTHING” to do with the cost of running an apartment building and if anyone on the Housing Committee is college-educated, you would realize this too!!!!
One other thing – it was announced on the news today by Governor Newsom that California government has 76 to 100 billion excess dollars and ZERO free money was offered to financially help apartment owners “FORCED” to pay for expensive Seismic Retrofits. WHY???
Thank you, Robin F. – a Los Angeles Rent Control
(aka Welfare) Apartment Building Owner
I’m trying to find an activist group representing mom and pop landlords. Several people I know are going to lose their homes because of non-paying renters – their primary residences where they have extra units to pay the bills. I am in a situation where I cannot get a woman in my house to leave because of the laws. Oakland just ruled that my house was a “multi-unit property” because I rented out a room in my house. I am a single mother and live there with my two kids. I would like to find a group of landlords who are interested in taking radical measures to change these insane laws that harm people like me AND tenants overall – (three people that I know, including myself, are planning to or have already removed their units from the market). This is making the housing crisis worse, and I am tired of it. I want to put my efforts into removing this unjust system to find something workable for everyone. Thanks, Hannah