As a property owner in Santa Monica, California, this is the time of year when we get our annual notification of the City's maximum allowable rent increases to our tenants.
This year the City has allowed an increase of 2.7% for tenants who have been occupying a unit for at least 1 year and the term of their lease has expired or reached a month-to-month status.
And while these increases, if only at marginal amounts, are welcomed by landlords who seek positive cash flow and further relief from their massive mortgage payments, the dilemma lies in who deserves a rent increase.
Does the good tenant who pays his rent on time, takes great care of the property and calls whenever there is a problem warrant a rent increase if his unit is below market value?
And with soaring gas and food prices, inflation knocking on our doorstep and an economy that is screaming RECESSION, who bears the grunt of the financial responsibility...the Landlord who relies on rents to satisfy his payments or the good Tenant?
Well if you ask the City of Santa Monica, their answer is clear: It's the wealthy, property owning Landlord vs. the unfortunate Tenant.
So what's the solution?
It's hard not to take into account market forces of supply and demand in situations like this. If a unit is being rented out below market value and the terms of the lease have expired, there is no logical reasoning why the rents shouldn't be justifiably increased to reflect the current conditions.
Furthermore, with the current and unforseeable trend in higher gas prices, there is an increasing demand for rental units in the Westside. And if an extra $50 a month is an insurmountable expense for a tenant, then there are others waiting for their departure.
But for the landlord with the great tenants, the answer is simple.
You give all tenants their maximum allowable rent increase in compliance with the City's law but if they truly deserve that money back, give them a refund during the holiday season with a note saying, "Thanks for being such a great tenant."
Monday, July 7, 2008
Monday, June 16, 2008
The Citron Updated - 50% Sold
After hitting the market only 50 days ago, we have now sold 50% of all available units!!!
Only 8 breathtaking units remain for sale including all four 2 bedroom units and two Penthouse floor plans.
Don't miss out on this great opportunity to own one of the finest condos available in the Los Angeles Area.
Only 8 breathtaking units remain for sale including all four 2 bedroom units and two Penthouse floor plans.
Don't miss out on this great opportunity to own one of the finest condos available in the Los Angeles Area.
Wednesday, April 30, 2008
The Citron - New Lending Incentives!
Great news from our lender at the Citron complex...
Loans for a 5 year fixed, with zero points are now available at 4.875%!
That's right, 4.875% with no points!!!
This rate is incredibly low and can be a great money saver during the mortgate crisis we're in.
For more information, please don't hesitate to call Renee 323-459-6890
Loans for a 5 year fixed, with zero points are now available at 4.875%!
That's right, 4.875% with no points!!!
This rate is incredibly low and can be a great money saver during the mortgate crisis we're in.
For more information, please don't hesitate to call Renee 323-459-6890
Eminent Domain - Propositions 98 & 99
I just got my sample June 3rd ballot in the mail and since I don’t know any of the judges and/or politicians on the ballot, I figured I’d talk a little bit about something else on the ballot that I do know something about.
Initiatives 98 and 99 deal with real estate, particularly a subject called eminent domain. The government’s right to repossess private land for public use through a process known as condemnation. It’s a right that the government established in the 5th amendment that also calls for “just compensation,” usually market value for the property.
Traditionally, public use meant things like roads and schools. Over the past several decades, however, some believe the government has abused its power by routinely condemning property and turning it over to well-connected private developers as a way of subsidizing economic development and increasing tax revenues.
Some well-known examples would be the building of Dodger Stadium on Chavez Ravine or the expansion of Disneyland in Anaheim.
The main issue with eminent domain is what is actually considered a “public use”… Disneyland & Dodgers baseball vs. Brand new condos and/or homes?
The attached link gives another example of the use of eminent domain in California.
http://reason.tv/video/show/56.html
Now back to the actual initiatives:
Proposition 99 would forbid California redevelopment agencies and other government entities from using eminent domain to take homes, businesses and farms for private development, which in my opinion sounds great.
Prop 98 is a little trickier because it includes a provision that would phase out rent control and limits protection for our land, air, wildlife and coastlines, in addition to threatening our state water supply. According to our Governor, “it undermines California's ability to build dams, water delivery systems and other public works projects.”
While I would like to see an overhaul of our rent control regulations since it discourages renters from all the benefits of home-ownership and limits the government’s tax revenue, I believe the restrictions on our water supply, wildlife and air are more important to protect.
So join me in voting “No” on 98 and “Yes” on 99.
Initiatives 98 and 99 deal with real estate, particularly a subject called eminent domain. The government’s right to repossess private land for public use through a process known as condemnation. It’s a right that the government established in the 5th amendment that also calls for “just compensation,” usually market value for the property.
Traditionally, public use meant things like roads and schools. Over the past several decades, however, some believe the government has abused its power by routinely condemning property and turning it over to well-connected private developers as a way of subsidizing economic development and increasing tax revenues.
Some well-known examples would be the building of Dodger Stadium on Chavez Ravine or the expansion of Disneyland in Anaheim.
The main issue with eminent domain is what is actually considered a “public use”… Disneyland & Dodgers baseball vs. Brand new condos and/or homes?
The attached link gives another example of the use of eminent domain in California.
http://reason.tv/video/show/56.html
Now back to the actual initiatives:
Proposition 99 would forbid California redevelopment agencies and other government entities from using eminent domain to take homes, businesses and farms for private development, which in my opinion sounds great.
Prop 98 is a little trickier because it includes a provision that would phase out rent control and limits protection for our land, air, wildlife and coastlines, in addition to threatening our state water supply. According to our Governor, “it undermines California's ability to build dams, water delivery systems and other public works projects.”
While I would like to see an overhaul of our rent control regulations since it discourages renters from all the benefits of home-ownership and limits the government’s tax revenue, I believe the restrictions on our water supply, wildlife and air are more important to protect.
So join me in voting “No” on 98 and “Yes” on 99.
Wednesday, April 23, 2008
Los Angeles Goes "Green"
In honor of Earth Day, Los Angeles became the largest city in the US to join in the battle against global warming. The LA City Council unanimously adopted regulations that require builders of large commercial and residential developements to adhere to measures such as planting drought-resistant landscaping and using recycled materials and energy-efficient heating, cooling and lighting.
The law requires new commercial buildings and high-rise residential structures with more than 50,000 square feet of floor space to meet a nationally recognized "Leadership in Energy and Environmental Design" (LEED) standard. It also would cover major renovations and low-rise developments of 50 units or more. The rules would amount to preventing about 85,000 metric tons of carbon dioxide emissions over the next five years, the equivalent of removing 15,000 cars from the roads.
For a city that houses over 10 million people and over 3.3 million housing units, it's not a bad start. Now let's hope we can convince small-time developers that the benefits of green building far outweigh the costs.
The law requires new commercial buildings and high-rise residential structures with more than 50,000 square feet of floor space to meet a nationally recognized "Leadership in Energy and Environmental Design" (LEED) standard. It also would cover major renovations and low-rise developments of 50 units or more. The rules would amount to preventing about 85,000 metric tons of carbon dioxide emissions over the next five years, the equivalent of removing 15,000 cars from the roads.
For a city that houses over 10 million people and over 3.3 million housing units, it's not a bad start. Now let's hope we can convince small-time developers that the benefits of green building far outweigh the costs.
Tuesday, April 15, 2008
The Citron Launch
Today, Landmark Realtors and Renee Zamir are extremely pleased to announce the listing of 16 brand new modern condominium units in the heart of the Beverly Grove Area near shops, restaurants and places of worship.
Unique and spacious floor plans with ultra modern and top of the line amenities. All units are corner units with hardwood floors throughout, Walker Zanger tiles, fireplaces, high ceilings, with great views and natural light. Complex has a breathtaking open courtyard with subterranean parking and security.
Choose from 3bedrooms/2 baths or 2 bedrooms/2 baths starting at $695,000.
357 N. Hayworth Ave. Fairfax at Beverly.
Grand opening on Tuesday April, 22 from 11-4pm and open houses every Saturday and Sunday from 1-4pm.
Own yours today!!!
http://www.circlepix.com/home/5NS6D6
Unique and spacious floor plans with ultra modern and top of the line amenities. All units are corner units with hardwood floors throughout, Walker Zanger tiles, fireplaces, high ceilings, with great views and natural light. Complex has a breathtaking open courtyard with subterranean parking and security.
Choose from 3bedrooms/2 baths or 2 bedrooms/2 baths starting at $695,000.
357 N. Hayworth Ave. Fairfax at Beverly.
Grand opening on Tuesday April, 22 from 11-4pm and open houses every Saturday and Sunday from 1-4pm.
Own yours today!!!
http://www.circlepix.com/home/5NS6D6
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