Property Management Resources for Landlords
Tips, Tricks, Tools & Time-Savers from Real Property Managers
COVID-19: Commercial and Residential Tenant Eviction Moratoriums Select State and Local Laws Tracker (US)
As a way to track the changing landscape of evictions, the following may be a great resource to stay up-to-date with eviction moratoriums. It is updated often with changes/updates for every state (and in some cases, specific areas/cities).
CA COVID-19 Rent Relief Program
March 31st is fast approaching, which means that the State’s Rental Assistance Program applications will be closing. This means that if you do not have your application for rental assistance filed prior to March 31, 2022, you will not be able to request financial assistance for your rental arrears. If you are unable to apply for rental assistance, this will also affect your ability to evict tenants who owe rent between October 2021 through March 2022, and may also affect your ability to recover past due monies in small claims court.
If you are unaware, since March of 2021, the State of California has implemented a program, called the CA COVID-19 Rent Relief Program, to assist Landlords and Tenants in covering unpaid rent from the periods of April 2020 through March 2022. Certain criteria is required in order to apply and get approved, but to date, out of the nearly half a million applications submitted, the State has doled out approximately $2.3 billion to Landlords and Tenants who qualify – with Los Angeles County receiving well over half of that amount.
If you wish to be able to take advantage of this program, you must submit your application before March 31, 2022. You may find out more about the program and submit your application at www.housingiskey.com.
If you need help with a tenant who is in arrears, we are available to assist you.
FHFA is Raising Rates on Loans
The Federal Housing Finance Agency (FHFA) recently announced targeted increases to Fannie Mae and Freddie Mac’s upfront fees for certain high-balance loans and second-home loans. High balance loans are mortgages originated in certain designated areas above the baseline conforming loan limit, according to a release from the FHFA. The new fees will go into effect for deliveries and acquisitions beginning April 1, 2022, in order to minimize market and pipeline disruption.
LA Multi-Family Housing: 2021 Q1 Report
Metro takes initial steps toward recovery. Los Angeles entered 2021 with the second-highest unemployment rate nationally, having recovered less than half of the 660,000 jobs lost last April. The metro’s economy, however, is beginning to benefit from the partial rollback of COVID-19 restrictions that has allowed certain companies to rehire.
Regional Housing Needs Assessment (RHNA)
Here in California, we have a state law that mandates local governments to conduct a Regional Housing Needs Assessment (RHNA) – you might hear the acronym pronounced as “reena”. Cities often talk about their RHNA goals and meeting their affordable housing objectives, but how does this work?
Rent Control Notice
AB-1482, approved by the Governor of California on October 8, 2019 mandates that notice needs to be provided to tenants no later than August 1, 2020 (see section 9.f.2) of the provisions stated in AB-1492. An example is attached.
For Leases signed after July 1, 2020 the following will need to be added to the language of the lease on non-exempt properties.
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
If you haven’t already given notice to your tenants, please read through AB 1482, asking any clarifying questions to your retained council, and we will discuss fee structures to owners for the service we provide for notifying tenants.
CryptoCurrency and Down Payments
According to a Redfin report, one in nine first-time homebuyers (11.6 percent) surveyed in the fourth quarter said selling cryptocurrency helped them save for a down payment.
Redfin commissioned a survey of 1,500 residents planning to buy or sell a home in the next 12 months. With surging home prices leading to larger down payments, some buyers are finding non-traditional ways to cover the cost and compete with other bidders.
California Tax Increase Proposal
Assembly Bill 1400, an estimated $163 billion measure, is poised to create a single-payer health care system for all California residents regardless of immigration status.
A proposed constitutional amendment (Assembly Constitutional Amendment 77) would increase taxes by $72,250 per household, roughly doubling the state’s already high tax collections, to fund the single-payer healthcare system. California businesses may also be looking at an increase in the unemployment tax.
Rising Rates May Not Slow Home Sales
Potential existing-home sales decreased to a 6.26 million seasonally adjusted annualized rate (SAAR), a 0.3 percent month-over-month decrease, according to the November First American potential home sales model. That’s a 79.5 percent increase from the market potential low point reached in February 1993.
The market potential for existing-home sales increased 7.2 percent year-over-year, a gain of 422,000 SAAR sales, outperforming its potential by 9.4 percent, or an estimated 586,000 SAAR sales.