All Forum Posts by: Andrew Robbins

One of the tenants is moving out.  I am currently negotiating the buyout price with the other two.

Opportunity awaits in one of the hottest zip codes in Los Angeles. Check out current market rents on rentometer.com

@Merlie 

@Account Closed Thanks so much for the reply.  That's what I thought :(   I was just wondering though if there is any way to be creative about this.  For instance, could my tenants make an arrangement to pay the utilities at whatever new place they find?  I know that I currently pay their water and trash pick up which comes to $150 per month.  This effectively gives them buying power of $1,700 a month (if landlord agrees to it).  Or, just being creative here, they could pay for their unit's share of the property taxes?  I'm just trying to think of things that the tenants could pay out of pocket from the large amount I'm giving them that doesn't violate the terms of Section 8.

@Patti Robertson I didn't think about that, but if I do that, I'm going to be in the same position I am now when I try to sell that property.  The current rents are depressing the value of my property, and I don't want to repeat that same problem.  The maximum voucher amounts my tenants have are far below market rents -- at least for any area they would want to move to.

@Greg S. I've been trying to do just that. Think creatively. In LA County though, there's something called the Ellis Act, which allows you to do what you're suggesting, but in order to do that, you have to take the property off the rental market for 5 years before you can make it a rental again!  I think this is to prevent exactly what you're suggesting :)

I'm selling my triplex which is under rent control and has Section 8 tenants -- rents are WAY under market, so building is worth so much more if delivered vacant. My only option to move them out is cash for keys. I've offered them a LARGE amount of money to move, which they're agreeable to. Here's the problem -- Section 8 has told the tenants that their maximum voucher to find a new place is about $1,550. Any new place they find, the landlord cannot charge them more than $1,550 if they want to remain in the Section 8 program. They have been looking for new places to live, but because rents are crazy right now in LA, they can't find anything for that price that's as nice as the unit they're in now. So while they'd have a lot of money in their bank account, they'd have to downgrade where they live, which gives them cause to just stay put. What's the solution?

I'm selling my triplex which is under rent control and has Section 8 tenants -- rents are WAY under market, so building is worth so much more if delivered vacant.  My only option to move them out is cash for keys.  I've offered them a LARGE amount of money to move, which they're agreeable to. Here's the problem -- Section 8 has told the tenants that their maximum voucher to find a new place is about $1,550.  Any new place they find, the landlord cannot charge them more than $1,550 if they want to remain in the Section 8 program.  They have been looking for new places to live, but because rents are crazy right now in LA, they can't find anything for that price that's as nice as the unit they're in now.  So while they'd have a lot of money in their bank account, they'd have to downgrade where they live, which gives them cause to just stay put.  What's the solution?

Hi Mickey,

Thanks for your inquiry.  I've had the property for about 7 years, and there haven't been any structural issues. Building need a new coat of paint.  Now if you're talking electrical/plumbing and all that, I can tell you that I just replaced the main sewer line in August to finally put an end to the nagging plumbing issues.  Seems to have solved the issues.  I did a light rehab to one of the units in 2013 as that was the only time I had a vacancy.  The other two units  could use a cosmetic touch up as the tenants have been there a while.  10k per unit would do the job.  Put in 20k each and you could get the top dollar that rents are going for now in the area.

Money-making triplex in one of the hottest zip codes in Los Angeles.  Property is north of the 10 Fwy.  Property will be delivered vacant.  According to Rentometer, the average rent for a 3bd unit in the area is a little over $3,000.  

The actual rents for the 1bd/1ba units directly across the street are $1,700 each, so total rent for this 8bd/3ba property could easily be north of $8,000.

Thanks for the replies. I didn't realize it was so common not to have a lease -- thought I just made a bonehead move by not getting copies of the leases when I bought.  I guess I just assumed a prospective buyer would want to see the lease to know if the terms were favorable before buying -- i.e. no smoking, no pets, etc. --  and that with no lease, the value of the triplex would be significantly diminished.  Will definitely consult an attorney if it really becomes an issue.  Thanks!

7 years ago I bought my first triplex and inherited existing tenants -- Los Angeles rent control, all Section 8 tenants. Didn't know anything back then -- got a copy of the estoppels but not the actual leases.  Now I want to sell the building, and for one of the units, no one can find the original lease (they've been living there for 15 years) -- not the tenant, not Section 8, not LA Housing, no one!  Seems like the commons sense thing to do would be to have the tenants sign a new lease, but I'm told I'm not allowed to do that either because of rent control or Section 8.  Advice?