RSO LA Area Seek Rent increase Advice
I have little knowledge so assume I know nothing. My family is an unfortunate event where my aunt is medically incapacitated and we’re taking care of all her finances.
She owns an apartment in LA that is under RSO and the only source of income supporting her at the moment. Unfortunately she managed this poorly and never increased rent for years and it is significantly under then current market and will not support her medical bills and needs.
I am looking for any advice possible on avenues to increase the rent. I know with current LA Covid mandates increases are currently on pause until possibly 2023. We are also exploring a 1031 DST exchange.
Quote from @Magnus Heng:
I have little knowledge so assume I know nothing. My family is an unfortunate event where my aunt is medically incapacitated and we’re taking care of all her finances.
She owns an apartment in LA that is under RSO and the only source of income supporting her at the moment. Unfortunately she managed this poorly and never increased rent for years and it is significantly under then current market and will not support her medical bills and needs.
I am looking for any advice possible on avenues to increase the rent. I know with current LA Covid mandates increases are currently on pause until possibly 2023. We are also exploring a 1031 DST exchange.
Do you have the option of terminating the lease for owner occupancy? Perhaps you can terminate the lease, move in to justify the termination, clean it up, and then move back out?
I suspect she probably has a lot of equity, so you could also refinance and cash out some equity to help with her care. I would only advise that if you're able to increase the rent and cover the increased expenses.
You are under no circumstances allowed to increase the rent on the property. There is no way around this given the LA RSO.
This would be a violation and could open you up to a lot of liability. You are allowed to buy the tenant out either ‘cash 4 keys’ or pay them the city relocation fee which is pretty high and can be found here: https://housing.lacity.org/wp-...
Whatever you do, don’t irritate the tenant because under the LA rules, you still cannot evict a tenant for non-payment of rent.
You don’t want a situation where a tenant decides they no longer want to pay rent.
Unfortunately, LA is a different beast and rent control in this area follows different guidelines.
If your considering selling, my buddy does buy homes cash.
To your success!
Quote from @David Avetisyan:
You are under no circumstances allowed to increase the rent on the property. There is no way around this given the LA RSO.
This would be a violation and could open you up to a lot of liability. You are allowed to buy the tenant out either ‘cash 4 keys’ or pay them the city relocation fee which is pretty high and can be found here: https://housing.lacity.org/wp-...
Whatever you do, don’t irritate the tenant because under the LA rules, you still cannot evict a tenant for non-payment of rent.
You don’t want a situation where a tenant decides they no longer want to pay rent.
Unfortunately, LA is a different beast and rent control in this area follows different guidelines.
If your considering selling, my buddy does buy homes cash.
To your success!
Hi David,
I currently also have a property similar to this! let me know if you guys are still buying , might have something for you guys!
Quote from @John Louis Tomines:
Quote from @David Avetisyan:
You are under no circumstances allowed to increase the rent on the property. There is no way around this given the LA RSO.
This would be a violation and could open you up to a lot of liability. You are allowed to buy the tenant out either ‘cash 4 keys’ or pay them the city relocation fee which is pretty high and can be found here: https://housing.lacity.org/wp-...
Whatever you do, don’t irritate the tenant because under the LA rules, you still cannot evict a tenant for non-payment of rent.
You don’t want a situation where a tenant decides they no longer want to pay rent.
Unfortunately, LA is a different beast and rent control in this area follows different guidelines.
If your considering selling, my buddy does buy homes cash.
To your success!
Hi David,
I currently also have a property similar to this! let me know if you guys are still buying , might have something for you guys!
Send me a DM with specifics please.