Possible deal in Santa Monica CA...

[Danny Barona]

I have a possible deal in Santa Monica CA. The problem is that that wonderful city has rent control. Most of the units are occupied and rented at less than 1/3 of market value. Any advice with owning in SM? Any advice on raising rent? Any advice on eviction?

[Greg M.]

Any advice with owning in SM? Don't. There is a reason it is referred to as People's Republic of Santa Monica. They are not pro-tenant. They are flat out anti-landlord. You are scum!

Any advice on raising rent? They set the max raise each year. It will be less than the max of other surrounding areas. Therefore, you will pay more to buy in SM, but year after year, your income will rise less than if you purchased in Los Angeles.

Any advice on eviction? You're kidding, right? Ellis Act you have a chance, otherwise no chance. FYI, 25% of SM renters have not moved in 20 years. That's a statistic from the SM government. Imagine having a tenant for 20+ years where every year the rent increase is less than the city over. 

If you do decide to go for it, a few other things in life you might enjoy are putting salt in your eyes, slamming your fingers in a door, and walking on pieces of broken glass while barefoot.