Rent Stabilization In L.A.
Hi everyone,
I am looking at a 13 unit apartment building in los angeles. However, the rents right now per unit average only $730. The average rent for this area should be atleast $1,200. Is it possible for me to raise the rents, or vacate the tenants if I purchase this building? Would I need to pay the tenants in order to vacate? Please give me any ideas / suggestions on how you would go about it. Thanks!
You may need to give 60 days notice for rent raises over 10%. I believe this is part of the state law to be in concert with the 2003 law that required owners to give 60 day termination of tenancy notices rather than 30 day notices (without this you could triple the rent with a 30 day notice and skirt the new law since most tenants would move).
You will need to honor any existing leases. You should also check any rent control ordinances in the community where your building is. I believe LA may have mild rent control. If the property is in Santal Monica, read very carefully. Also some communities have eviction control ordinances. You need to check on these also.
Regards,
Ed
Better to pay for the service then provide equity.
I have seen something like 40-60 (60 for $ person) as a typical split. This seemed to be a typical ration that venture capitalists looked for in starting a new high tech company.