Los Angeles Auction 3-4 unit.

[Will F.]

Hi so some background-- I'm looking at a 3-4 unit auction in Los Angeles city. It's under rent control. Is anyone familiar with purchasing small multifamilies under rent control? I have familiarity with the city as far as RSO and the LAHD for properties we own under rent control. The city is strict and you cannot evict to raise rents. I'm not sure what to do as far as determining current rents or dealing with evictions not knowing the current rent. The previous owner might occupy one of the units as well but may be unwilling to cooperate being he's going through the foreclosure.

[Allan Glass]

@Will F.

Just to clarify...you cannot force the tenants to agree to relocate if they provide a valid lease, proof of rent payments, etc.  there are prescribed and limited reasons why a landlord can evict a rent controlled tenant in LA.  Those will be outlined here:

https://lahd.lacity.org/lahdinternet/LinkClick.asp...

However, if the existing tenants voluntarily agree to relocate b/c you've paid them relocation assistance, my experience has been that after tenants voluntarily vacate you can re-establish market rents.