The Los Angeles Nightmare

[Oscar Montealegre]

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.

[Jonathan Taylor]

@Rory Kinnear I see your side of this but when did investing in Real Estate become a charity casemfor those affected by this pandemic? I have had tenant turn over during this pandemic where we just agreed to break the lease without penalty, but this topic, as covered many times in the threads, turns us investors into charities holding up the failing legs of the housing market. Why is it our job to protect from homelessness? We own property and took the risk, and risky as it is, it doesn't equate to donating out depleting resources to protect those who failed to prepare.