Investor · Huntington Beach, CA · Member since 2015 · 105 posts · 25 votes
Hello. I'm thinking about purchasing a multi unit building under rent control in Los Angeles. My concern is that these units are legally 1 bed 1 bath, but the seller claims that the previous owner converted them into 2 bed 1 bath. I heard they come to do the inspection at least once in 3 years. Does anyone here has heard of a story where the housing inspector from the city orders to convert back into 1 bed 1 bath? In such a case, will they require the landlord to reduce the rents when the rents are already below market? Thank you.
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
10y
Why not just call them up? See if you can get the number for an inspector and just ask them. It's possible the city really needs more 2 bedroom units and will work with you, rather than lose them by making you convert them back to 1 bedroom units.
I had really good luck getting info out of city/county personnel when I was looking at properties to buy. I found them to be really helpful. I was looking at a couple of different land lots in a couple of different places and the inspectors told me why I shouldn't buy them, etc. They can get a little cagy if you ask them for referrals for contractors, etc., but I could usually even shmooze that info out of them lol. "Who would you hire? Go ahead and give me a list, like you're supposed to, but maybe put them in order of who you would hire???? Pleeeezzzzzeeeee?????" LOL.
Investor · Huntington Beach, CA · Member since 2015 · 105 posts · 25 votes
10y
That is interesting, Sue. What I need is your shmoozing skillz. But if I call, do you think they would put this property on the top of the priority list of their "go inspect, cite and collect fine"? I don't want to take that risk of becoming an "informer" though. Did it cost you a lot of money in your shmooz negotiation to legalize 2 bed?
That is interesting, Sue. What I need is your shmoozing skillz. But if I call, do you think they would put this property on the top of the priority list of their "go inspect, cite and collect fine"? I don't want to take that risk of becoming an "informer" though. Did it cost you a lot of money in your shmooz negotiation to legalize 2 bed?
LOL. I'm just chatty. I never spent any money, I just called and started asking questions. I never had your exact situation regarding converting bedrooms. My dealings with inspectors was always regarding developing raw land.
No, I don't think you would put them on the top of anyone's list. You could just be generic.
"Hi, I'm looking at buying a multi-family building that has tenants in place under rent control. Whoever told me that the owner converted some one-bedroom units into 2 bedroom units and the tenants like it that way. I am just wondering if I will have any problems with you guys wanting to convert those back to one-bedrooms? If I'd have to convert them back to one-bedrooms, I don't think I could break even on the rent. How would that work? "
Just start blabbing. If they ask you which property in particular, you could say, "Oh, man, I would hate to get anyone in trouble."
But, really, what do you care if they get in trouble? You need information in order to decide whether to buy or not. I'd probably give them the address and ask them about it straight up. If you just say, "Hey, I want to have everything kosher with you guys, so what should I do?" it would put you in their good graces, too.
Okay I will call them up tomorrow. I hope I'd sound as charming as you are :) Thanks for your guidance Sue.
LOL, well I'm a talker for sure. But, really, most people like to give advice and like to be asked for it. So, start out by saying, "I am really hoping to get your advice." There aren't too many people who would immediately hang up on you, if you started out with that line. Good luck!
Los Angeles, CA · Member since 2014 · 12 posts · 3 votes
10y
If permits were not pulled/ there is not an amended certificate of occupancy, the systematic code enforcement inspectors will almost certainly order the units converted back OR require permits to be pulled and proof that the conversion was done to code (assuming that is even possible).
Additionally, under rent control, you will then need to credit the existing tenant for the loss of the amenity that occurred when they lost a bedroom.
Proceed with extreme caution as SCEP inspectors do not mess around . . .
Property Manager · Los Angeles, CA · Member since 2010 · 71 posts · 35 votes
10y
And if you have a choice between a rent-controlled building or non rent-controlled building go for the non rent-controlled building and save yourself a lot of potential hassle in the long run