This guy is evicting a 102 year old woman so his daughter can move in to the apartment. The woman had been living there for 30 years! I know what I’d do. What would you do?
I think they're pretty generous giving her 90 days to move.
I think the real crime here is that families no longer take care of their elderly. It's cool she's able to live on her own but that's going to change any day now. If I had a relative that age, I would be encouraging them to move in with me so we could keep an eye on them and help them. I certainly wouldn't leave them out on their own, paying rent and exposed to unscrupulous contractors or landlords or door-knockers or whatever.
Also, for those who blindly think rent control is bad -- it isn't. In some cities, it's necessary. If you don't want to be a landlord in rent control don't own where there is rent control. I lived through the condo conversion craze in Los Angeles and it wasn't fun. If it goes statewide, that's a different story. I doubt it ever will. Many ppl in California really stretch the ethical boundaries of "normal" interactions.
Rent control is wrong. Regardless of what city. Many economists agree. If you take a huge portion of the housing supply and subsidized the rent, it increases rent for everyone else. Rent control isn’t fair especially when expenses aren’t controlled either. These cities don’t care about raising their property taxes as needed.
Also rent control is a contributing factor to condo construction. Many developers don’t build rentals because of Rent control and would rather build condos.
It’s the effect of rent control. Without rent control, landlords love long term tenants. With rent control, landlords target students, ... who won’t stay for too long & would be very happy when their long term tenants move.
I personally know a guy who rented a 3 bed / 2 bath apartment in San Francisco for a long time & paying less than $500/month. He has a couple houses, but still hand on to his apartment.
It’s the effect of rent control. Without rent control, landlords love long term tenants. With rent control, landlords target students, ... who won’t stay for too long & would be very happy when their long term tenants move.
I personally know a guy who rented a 3 bed / 2 bath apartment in San Francisco for a long time & paying less than $500/month. He has a couple houses, but still hand on to his apartment.
I'm not a fan of rent control at all. Plenty of people live in apartments in upscale Manhattan buildings paying pennies when comparing market rent to the exact unit. The rent control tenants abuse the system and try to pass-on the apartment to family for generations. Its a landlords dream to get rid of rent control. Many times the rent collected won't even cover the expenses for the unit. On the other hand, rent control was already in place when the landlord bought the building.
@Brian Ellis. I’m assuming the owner is a new owner with much higher mortgage than previous owner. I’ve been in similar circumstances and if rent is half of what it should be or way under market I definitely see the dilemma for the new owner, especially if they’re negative on the property substantially. Hopefully she could handle a rent increase?
@Anthony Wick in all fairness there is probably no correlation between what any of these posters say and what they would actually do. These “moral and ethics” questions are only as material as to when someone actually has to make a real decision, otherwise people will justify and rationalize any narrative which makes them feel good.
@Syed H. I get that owners and landlords don't like rent control but it's necessary in places like Los Angeles. People spend over 60% of their income on housing and even then - it doesn't cover it. They will roll it out to apply to older properties. The reality of living there and personal experience I know 1000% it is necessary. We went through three condo conversions and were forced to move each time. Due to rent control (when I was in graduate school) we were paid $3000 to move which barely covered the move and it was an immediate request. The owners didn't care, they sold the unit for around $110 million right before the bubble burst. Most of the tenants didn't even know about the rent control division but I did and I was glad to have it. There were so many condo conversions there were no rentals available. Back then in LA, tear downs were $800,000. This is the reality. Then good, hard working people and smart people, like grad students, just flee the city as soon as they can. Rent control has its place, but I realize I won't convince anyone. I'm also a landlord but I also respect people trying to make a living and live.
I might have health issues of my own. and want my child closer to assist but do not have enough room at my current residence.
So many factors that can justify why this is being done.
So, will I do it myself....does one or more of the condition i listed above a factor?
Answer will be: it really depends on the situation.
But I think it is wrong to use age here or any other time.
We’re always quick to say do not age discriminate or any discrimination for that matter. If anyone of us was presented with the ability to do an eviction based on a situation without age being one of them . And had every law in our favor to do so. We would.
So why use age as a factor to make your decision here.
What if the article read, landlord evicts because of religious beliefs that differs. And landlord has the ability to evict. What will you say then? But throw in age and all of a sudden it’s a no no.
@Cody L. I would rather deal with 'realz', not speculation. If that was the case I probably would sold out of CA a LONG time ago. ;-)
Yup, there is the 'looming threat of rent control'. There is possible repeal of Prop 13, which would HAMMER me.
If Prop 13 gets repealed I MIGHT have a decision to make. In the meantime I'll collect my cash. ;-)
Totally agree. I guess the devils advocate position would be if something like that happens where you're motivated to sell, that same factor will be motivating many others at the same time (and will be spooking buyers). So if I really thought something was about to smack me in the face I might just move before I got smacked.
Luckily for me I just live in this basketcase state. I don't invest here :)
We deal in a business that by it's very nature is emotional. We deal in people's homes. Their places to live. This business can be tricky, and IMHO, should be dealt with humanely and conscientiously. We are not selling TVs here. We are ****ing with people's lives.
In California, where I am from and run my apartments, landlords are perceived of as being greedy and immoral. (we are about to possibly get statewide rent control) We landlords all need to seriously consider the consequences of these perceptions and our actions. The folks in this business would do well to think about the moral and ethical implications and not just the bottom line.
Imagine the positive story if this was a story about a landlord that helped this 102 year old woman instead of evicting her? I don't know enough about the dynamics of this particular story, but I would love to see some stories of landlords doing positive things. I think everyone would benefit from that!
"Imagine the positive story if this was a story about a landlord that helped this 102 year old woman instead of evicting her?"
Sadly positive stories like that don't get published. :(
Personally I'd let her stay. But it's because I'm in a position to do so. I wouldn't begrudge someone that wasn't in the same position. For all I know the guy is having a hard time paying for the property. It's hard enough to cash flow in LA. I can only imagine if you add a 30 year below-market rent tenant into the mix.
@Joe Alford not to sound cruel, but at 102 does she have many years of life left? I’d keep her. Shes been paying rent, but probably won’t be for another 3-5.
This guy is evicting a 102 year old woman so his daughter can move in to the apartment. The woman had been living there for 30 years! I know what I’d do. What would you do?
Yes, there ARE times when you have to look beyond the numbers.
Sure, you can evict the centenarian. What will that cost you in the long run?
Goodwill in the local business community?
Standing in the community at-large?
Willingness of others to cooperate with you and/or partner with you?
Unfavorable press / media coverage? Might lenders call their loans due when they see it?
I have a question I've always liked to ask which has been known to cause boardrooms to fall silent for minutes: "How much money can you AFFORD to 'save'?"
In this case, I would modify that to: "How much can you afford to lose as a result of a 'good business' decision?" (Reference: Charles Dickens: "A Christmas Carol". Fiction, true, but it gets the point across better than I ever could).
If she lived there and paid rent for 30 years and still paying rent, she paid off that property on your behalf. I wouldn’t evict here. She is 102, let her live happy for the rest of her life.
I live in LA, about a 25 minute drive from this property, so I know the area. I saw the landlord interviewed on TV, and from what he said, sounds like the property was inherited (I would guess he's in his late 40's or early 50's, so his parents probably owned it). He brought up the point of taking care of family, i.e. his daughter who is in law school. I get where he's coming from, but 102, always paid on time - at her age, we know she won't be around for very long, so why not just let her stay there, and finish out her final years in peace. Being a landlord IS about money and cash flow, of course - but it's not the only consideration.
I also agree with what others have said, about how this reflects poorly on him, both professionally and personally. I mean, our former governor Schwarzenegger is speaking out about this, plenty of local politicians, etc. I am sure other landlords are looking at this and quietly cursing this guy for bringing so much bad publicity, given what the political environment for rental property owners is like in LA, the Bay Area and so on. Even in a big city, the world isn't that big. We can all say "I don't care what other people think", and sometimes that is the right mindset, but if you're going to be in certain businesses (this one for sure), reputation matters. I think he thought short term when he should've been thinking long.
@Joe Alford not to sound cruel, but at 102 does she have many years of life left? I’d keep her. Shes been paying rent, but probably won’t be for another 3-5.
And the landlord may have been hoping for this for decade already! She seemed pretty healthy and with it in the photos.
After 30 years in my opinion she’s probably paid for the house. If not paid for it twice.
I understand Bussiness but now you’re simply talking being greedy.
In CA it would depend on how it titled when it was inherited. Maybe Prop 13/inherited property has not had the taxes reset. But if the taxes were reset then she may not even be paying the taxes, let alone the insurance for the property. Remember her rent rate was set 30 years ago when the house was first rented and much less value. And it may not have been increased at even the small level that rent control allows.
I inherited property from an aunt and that is not an allowed transfer to keep the Prop 13 tax rate, so I had an $8,000 increase in taxes for the partial year and sold it before I had to pay for the full year increase. That was LA County, CA.
@Joe Alford as a investor in Real estate he would be crazy but if he just owns the house and needs it for family...i see nothing wrong with that....i see people saying well why dont he just buy another house to put her in.... I say who would want to inquire more debt that later on in life when one is preparing for retirement....