The Los Angeles Nightmare
I’m a real estate investor based out of Los Angeles. I have been doing it for ten lovely years. However, what I am about to say truly pierces my perpetual LA pride. You couldn’t pay me enough money to invest in Los Angeles moving forward.
Recently, our governor extended the COVID-19 related eviction moratorium until September 30th, 2020. Meaning landlords cannot begin the eviction process and tenants cannot be legally evicted until September 30th. And to make matters worse, tenants have a year to pay back the rent owed for rents unpaid during the COVID-19 pandemic.
Say what?
I unfortunately have one tenant that has not paid since March 2020. She pretty much gives me the finger when I ask for past due rent and paints my face with the eviction moratorium, telling me that she has the law on her side. In this case she does, and as a law abiding citizen my hands are tied.
Assuming the eviction moratorium is lifted on September 30th-which I doubt-she essentially has 12 months to pay the rent owed before I can evict her. This is nuts! Talk about harming capitalism. Talk about harming people that are risking their capital to earn some financial growth. Talk about the city being anti-business, anti-investment, anti-growth.
Who in the right mind is going to invest in this type of business climate that is pro tenant and anti-landlord? I believe in fairness but right we have wackiness. I love my city, but as an investor I’m certain I no longer see myself investing in Los Angeles Real Estate.