All Forum Posts by: Calvin Kwan

Hey Ryan,

I saw your other post in the marketplace.  Finding vacant units in your area, and in your range will be extremely tough.  I had the exact same criteria (no joke) and it was nearly impossible for a couple of reasons - all cash offers from foreign investors and way too many folks looking for the same thing.  I spent over a year looking for a deal that would work.  I don't know if you have hard money, but I didn't, so it was that much more difficult.  Property that I found would never appraise for what people were paying.

You may have to look outside your comfort zone to find a deal.  I certainly did, but glad I was able to find something with long term potential. 

Good luck!

As for protected tenants, might be a can of worms if you try to raise rent or evict.  I'd avoid if possible...

If you evict to OMI, you have to live the unit for at least 3 years before you can rent it out.  If there's a vacant unit in a duplex or triplex, you can move into the vacant unit and immediately make the building exempt from Measure EE.  I wouldn't suggest you move in and start kicking people out since Oakland is very tenant friendly.  This will be seen as 'bad faith' and even though you have the right, it may go to court and you will probably lose.  

If you want to raise the rent to market after OMI, you have to wait 2 years plus petition the rent board.  They just ammended this a few months ago.  Also, there's a difference between Measure EE and the Rent Adjustment Ordinance.  Read of on both as they will heavily impact your decisions.

Of course this is not legal advice.  Chat with a RE lawyer before you do anything.  Bornstein is widely recommended on this board.  I used Harris Rosales Harris - they do a ton of work in Oakland as well.

Owner occupied properties with 3 or less units. Also SFRs and properties built after 1995.  

I'm in this same situation.  I was going to occupy a unit and raise rent after a year.  The new amendments really put me in a tough spot since i'm in escrow.  Good news is that this new amendment doesn't impact and Just Cause exeptions.  I can evict once i move into the unit by posting 60 days.

For me, since i'm already this far along, i am going back to the seller and asking for a price reduction.  The reduction will be used to negotiate a buy out of existing tenants.  If they wont' work with me, i may need to explore eviction options.

Thanks @Ryan Scott Isacksen!

Totally understand about keeping tenants monthly, but I'll need them on the a lease for various reasons.

So to clarify, I want them on a new lease by 1/1.  I'll be doing the roof this month.  Can I add the banked rents and the capex on the 1/1 new lease?  What if the rent increase is above 10% (max increase in Oakland)?  Do I just pass through the max capex and bank the rest later?

Thanks,
Calvin

Hey Oakland Property Owners!

I have a few quick questions about rent increases.  I just bought a duplex and the current tenants have been in the building for 5 years paying $2,000 (on month-to-month).  They've had no increases since they moved in.  I know that I am allowed to bank rent, but I am also in the process of installing a new roof and incurring capex costs.  I'd like to bank rent and pass through capex if possible.  I'd like to sign the tenants up for another 1-year lease, but with updated rent, so here are my questions.

- Can I bank rent AND pass through CapEx costs to the tenant? I was informed that it's one or the other, but not both. Either would require a 30 day notice.

- Should the new lease just include the banking amount and capex amount, or does it need to be address separately?

- If I incur additional capex costs later, can I pass them through within the same year, or is it just 1 increase a year.

Thanks,
Calvin

@Simon Gill - Are you doing the renovation yourself?  Did you compare cabinet pricing with Sincere, East Star, Uni-tile or anywhere else?

@Tom Jr. Sterl

I could definitely use a few extra inches.  The sink is just a placeholder at the moment.  Maybe I can make the sink cabinet 30" to make room for a full sized dishwasher?  Not sure what's the priority - full sized dishwasher or a full sized kitchen sink.