All Forum Posts by: Tim Grich

Taxes- qualifying as an active real estate professional will allow for more write offs.

Can anyone provide a referrals to good CPAs in the South Bay who specialize in real estate? I may be looking to make a move as my portfolio grows.

Thank you.

Have you considered contacting the Apartment Association (there's several in LA) and reviewing their leases to see if it would suit your needs? I know the Apartment Association of Southern California Cities updated theirs just last year.

New twist on the question now that there have been many replies....

For those of you who do provide a fridge/appliances, do you include or not include a clause in the lease specifying that the tenants is responsible for the repair of said appliances?

Quote from @Omid Sadeghpour:

Hello everyone,

I own 6 rental units in the city of Los Angeles and am new to this "rent freeze" topic.

Given that Los Angeles is rent-controlled, does anyone know the following:

Once the rent freeze is removed, will the city allow landlords to also increase past years (i.e.: 2020, 2021, 2022...) in which rent was not increased in an amortized manner given the rate of inflation?

Meaning, worst-case scenario is that inflation in 2023 is 3% and we as landlords can only increase rents by 8%. Ideally, we should be able to increase rents by 8%, and another extra 2.5% for the next 10 years. How do I get that extra 1%? Because the rent increase from 2020, 2021, 2022 should be at least 15% plus the inflation of those years which is about 10% cumulatively. 

So 25% / 10 years is 2.5%. This is really bad math, but in essence... does anyone know if we are going to have that?

 I'm not sure I follow your math, but the likelihood of the City of LA allowing you to impose retroactive increases to "catch up" is slim to none. It would also take a legislative act by the State to allow for more than the current allowed 5% plus CPI.

Quote from @Dan Bass:

@Erik B.. Congrats! I hope they lift the moratorium. I heard they are extending it to 2023?? Is this right?

Yes, that's correct.

Congrats Erik!

I have not heard of any specific dollar amounts spent on the rehab to qualify it as substantial. The only thing I have seen is the number of days it will take to rehab, which in most cases is 30. Long Beach is changing theirs to 60 days.

Join the apartment association as they'll have the latest on things like this. As of right now, LA County has extended their eviction moratorium for renovations until Jan 31st (can't post the notice to vacate until 2/1). LA City has been ever harsher on COVID related stuff and I heard that there's no certain end date for LA City as of right now. Still recommend you verify.

I can recommend Julie Balla at Knauf-Maxwell Insurance Services. They are brokers, so have access to many carriers. 323-550-7900, tell her I referred you.