Host: Jesus Henao
Topic: Rent control, insurance, and real estate deals
Guest: John Lite
The Commercial Real Estate Hour – July 30, 2018
On this episode of The Commercial Real Estate Hour, Jesus is joined live in the studio by John Lite to discuss a series of topics including a quick overview of rent control, the importance of insurance, and some of the latest deals in the Santa Clarita Valley.
Santa Clarita is an incorporated area, so we have no rent control laws, but there is a law trying to be passed and it is on the ballot in November about repealing a law that stops people from creating any more rent control laws.
Rent control is when you are told how much money you can charge for rent in your building.
So if you have a tenant in your apartment building who is paying $600 a month because they have been there 15 years, as opposed to the $1,600 a month you could charge now, the rent control law says you can only raise his rent 3% a year. If the tenant moves out of the unit, then you can raise the rate to market price.
Previous Episode: Differences Between Commercial And Residential Real Estate Sales – The Commercial Real Estate Hour On KHTS FM 98.1 & AM 1220 – June 18, 2018
As the owner you have to pay for the water, the building maintenance, the insurance,
If the building was built before October 1, 1978, then it is subject to rent control. If it was built after October 1, 1978, then it is not subject to any rent control.
The government dictates how much you can maximize from your investment with rent control.
If this law passes in November, every city can enact their own rent control laws, and property values could tank.
If you are looking to buy apartments, industrial properties, a shopping center or a triple net deal, please feel free to call us today. We have marketed and sold investment property in California, Nevada, Idaho, Texas and Indiana.