Socal Multiunit Real Estate

WHAT HAPPENS WHEN A TENANT ABANDONS A UNIT?

WHAT HAPPENS WHEN A TENANT ABANDONS A UNIT?

Edited by Jodi Summers

Hey landlords, have you ever had this happen to you –

You decide to visit a tenant whose rent is past due, and while passing by the front window of the unit, you notice that the apartment appears to be vacant.

Do you know what to do? Can you, as the owner, just assume that the tenant abandoned the property, change the locks, and lease out the apartment to the next person?

Yeah right, if only it should be so simple. Being a landlord is just not that easy.

According to the California Association of Realtors legal department:

California law provides a procedure that the owner or the property manager of the rental real property must follow before assuming that the rented property has been vacated. The focus of this legal article is on this procedure for regaining possession of abandoned real property. A copy of the notice that the owner must send to the tenant is included. However, this article does not address the issue of recovery of damages by the owner.

FAQ

Q 1: If a landlord believes the rental property has been abandoned, what is the notice that the landlord must provide to the tenant?

A: The Notice of Belief of Abandonment (“Notice”) goes as follows:

Notice of Belief of Abandonment

To:

______________________________________________________________________

(Name of lessee/tenant)

______________________________________________________________________

(Address of lessee/tenant)

This notice is given pursuant to Section 1951.3 of the Civil Code concerning the real property leased by you at ____________________ (state location of the property by address or other sufficient description). The rent on this property has been due and unpaid for 14 consecutive days and the lessor/landlord believes that you have abandoned the property.

The real property will be deemed abandoned within the meaning of Section 1951.2 of the Civil Code and your lease will terminate on ____________________ (here insert a date not less than 15 days after this notice is served personally or, if mailed, not less than 18 days after this notice is deposited in the mail) unless before such date the undersigned receives at the address indicated below a written notice from you stating

Both of the following:

(1) Your intent not to abandon the real property.

(2) An address at which you may be served by certified mail in any action for unlawful detainer of the real property.

You are required to pay the rent due and unpaid on this real property as required by the lease, and your failure to do so can lead to a court proceeding against you.

Dated: __________________________________________________________

(Signature of lessor/landlord)

___________________________________________________

(Type or print name of lessor/landlord)

___________________________________________________

(Address to which lessee/tenant is to send notice)

(Cal. Civ. Code § 1951.3(d).)

Q 2: Under what circumstances may a landlord give the tenant the Notice in Question 1?

A: The landlord may give the Notice only if two conditions have been met: (1) the rent on the property has been due and unpaid for at least 14 consecutive days and (2) the landlord reasonably believes that the tenant has abandoned the property (Cal. Civ. Code § 1951.3(b)).

Q 3: What if the landlord doesn’t want to wait the 14-day requirement mentioned in Question 2?

A: If a landlord wishes faster action, the landlord may use the unlawful detainer remedy. See California Code of Civil Procedure Sections 1161-1179a. See also, the C.A.R. legal article, Unlawful Detainer: The Eviction Process in California < http://www.car.org/index.php?id=MTg4Ng >

Q 4: What if the landlord believes the property to have been abandoned and there’s been a breach of another covenant under the lease but the rent has been paid?

A: The landlord must use the unlawful detainer remedy if the landlord wants to get the tenant out of the property. See California Code of Civil Procedure Sections 1161- 1179a.  See also, the C.A.R. legal article, Unlawful Detainer: The Eviction Process in California.

Q 5: What is a “reasonable” belief of abandonment?

A: Many residential as well as commercial tenants vacate the premises when behind in the rent without ever notifying the landlord. What some courts look for is whether or not the keys have been turned over to the owner.  If turning over the keys establishes for the landlord a clear showing of abandonment, then the landlord may be able to take possession of the premises without providing the Notice as required by section 1951.3.  Following the procedure of section 1951.3 provides greater certainty to the owner and provides protection against a tenant who later sues the landlord for legal possession of the rental property.

However, if the tenant has not made it clear—has not given over the keys—then the landlord is left guessing about the tenant’s abandonment. One way to get some idea of the tenant’s intention is to view the premises by looking through a window to see if there is anything left behind. For example, if the utilities have been discontinued, there is no refrigerator and no furnishings, abandonment seem clear.

What if some personal possessions have been left behind?

“Since many lessees who abandon real property leave personal property on the premises, the mere fact that the lessor knows that the lessee has done so should not, by itself, be held to establish that the lessor’s belief as to abandonment was unreasonable. Where the personal property left by the lessee appears to be of little value, it would be reasonable for the lessor to conclude in the absence of other evidence that the personal property, as well as the real property, had been abandoned. On the other hand, where the personal property is of substantial value and it appears that the lessee is the owner, these facts would be significant evidence that the lessee had not abandoned the real property.” (11 Cal.L.Rev.Comm. Reports 951 (1973); 12 Cal.L.Rev.Comm. Reports 571 (1974); (Cal. Civ. Code § 1951.3(e)(2).)

Note:  if personal property has been abandoned too, there is another procedure to be followed.  See the C.A.R. legal article, Abandoned Personal Property: Disposition of Items Left Behind After Termination of a Tenancy.

Q 6: What If the property is under a lease that doesn’t terminate for several months, what should be written on the Notice regarding the date of lease termination?

A: Assuming the landlord wishes to terminate the lease and rent it to another tenant, the date of termination of the lease specified in the Notice should be at least 15 days after the Notice is served personally or, if mailed, at least 18 days after the Notice is deposited in the mail (Cal. Civ. Code § 1951.3(b)).

Q 7: How should a landlord or property manager give this Notice to a tenant if the tenant has disappeared?

A: The landlord’s Notice can be personally delivered to the tenant (if possible) or, in the alternative, it can be sent by first-class mail, postage prepaid, to the tenant at his or her last known address (which may be the rental property address).   If there is a reason to believe that the Notice sent to that address will not be received by the tenant (or will not be forwarded to a subsequent address), the landlord may also send he Notice to another address, if any, known to the landlord where the tenant may reasonably be expected to receive the Notice (e.g., a place of employment). (Cal. Civ. Code § 1951.3(c).)

Q 8: Can a landlord still assume that the tenant has abandoned the property if the landlord accepts all or partial payment of the rent due before or after giving the Notice?

A: No. If during the period of time beginning 14 days before the time the Notice was given and ending on the date the lease would have terminated in the Notice, the tenant pays all or a portion of the rent due on the real property, then the landlord cannot assume the property has been abandoned.  (Cal. Civ. Code § 1951.3(e)(4).)

Q 9: What must a tenant do to prove that he or she has not abandoned the property?

A: Assuming the tenant doesn’t receive the Notice and wants to regain possession of the property, the tenant must establish that he or she hasn’t abandoned the property by proving (1) that rent was not due and unpaid for 14 consecutive days when Notice was given, (2) that it was not reasonable for the landlord to believe that he or she had abandoned the property, (3) that, within the permitted time, he or she gave written notice of his or her intent not to abandon the property, or (4) that, during the period specified in section 1951.3 (e) (4), the tenant paid all or any portion of the rent that was due.  (Cal. Civ. Code § 1951.3.)

The burden of proof on these matters is placed on the tenant so that the landlord will be able to proceed to relet the property with reasonable assurance that the abandonment and termination will not later be set aside by a court. (11 Cal.L.Rev.Comm. Reports 951 (1973); 12 Cal.L.Rev.Comm. Reports 571 (1974).)

If the tenant receives the Notice, the tenant must respond in writing prior to the termination date in the Notice that the tenant has not abandoned the property and must provide a current address for the landlord.  In addition, the tenant must pay current all rent that is owed.  (Cal. Civ. Code § 1951.3(d).)

Q 10: Does the law discussed in this legal article pertain to all real property, commercial and residential?

A: Yes.  The law applies to all real property (Cal. Civ. Code § 1951.3(a)).

Q 11: Does the law discussed in this legal article apply to mobilehomes?

A: No.  For abandonment of mobilehomes, see the Mobilehome Residency Law; in particular, see California Civil Code Section 798.61.

Q  12: Where can I obtain additional information?

A: This legal article is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.’s legal products and services, please visit C.A.R. at www.car.org Online.

**

Reprinted with permission of the California Association of Realtors. Credit for this piece is to be given to the C.A.R. Legal Department.

http://www.car.org/legal/2007articles/abandoned-rental-real-property

http://uas.osu.edu/slideshow/xml/189?1256748258

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http://www.mirrorrange.com/index.php?showimage=8

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THE GEOGRAPHY OF JOBS

By Jodi Summers

According to this exploding Geography of Jobs map - http://tipstrategies.com/archive/geography-of-jobs/-

Southern California reached its peak in 2^nd quarter 2005, hit parity 3^rd quarter 2007 and then began our great economic slide…

Check it out:

October 2007

~~

April 2005

~~

March 2009

~~

Let’s hope we go green in more ways than one.

BE HAPPY! LOS ANGELES IS NOT ON THE LIST OF PLACES WHERE HOMEOWNERS HAVE THE MOST DEBT

By Jodi Summers

Sure, we’re all complaining about our decline in wealth, and the drop in real estate values. The bright side is if you’ve owned for any length of time, you’re still satisfied. In many parts of the Los Angeles area, real estate saw a 400% rise in a 10-year period – to have prices drop by a third is still 266% better than 12 years ago.

Other cities in California have a lot more to complain about, according to Forbes list of Where U.S. Homeowners are Most in Debt. Seven metro areas of the Forbes Top 10 made the list, including Modesto, Riverside, Yuba City, Merced, San Diego, Stockton and Vallejo.

In these cities, underwater mortgages–one on which more is owed than the home is worth–comprise an average 44% of outstanding mortgages, compared to the 29% nationwide average.

Modesto ranks as the worst city for homeowner debt. Household wealth has been reset to 2001 levels while housing prices have declined 57% since the peak in 2005, and 30% in the last year alone. This has dunked 81% of the last five years’ mortgages underwater.

Want to know more?

Check out the whole story @ http://www.forbes.com/2009/05/11/homes-equity-debt-lifestyle-real-estate-mortgage-underwater_slide_2.html?thisspeed=25000

**

www.performermag.com/wcp.tourstop.0711.php

http://livedesignonline.com/theatre/State_Modesto.jpg

WE WIN! LOS ANGELES IS THE MOST OVERPRICED CITY IN THE UNITED STATES

By Jodi Summers

Los Angeles likes being on top…though we’d rather be famous than infamous. But today, we’re infamous, as Forbes sites L.A. as the most overpriced housing market in the U.S. Forbes then ranked these metros using four measures: average salary for workers with a bachelor’s degree or higher, with data from PayScale.com; annual unemployment statistics from the Bureau of Labor Statistics; cost of living, according to Moody’s Economy.com; and the Housing Opportunity Index from the National Association of Homebuilders and Wells Fargo, which measures the number of homes sold in a given area that would be affordable to a family earning the local median income, based on standard mortgage underwriting criteria.

No. 3: Miami, Fla.

(Miami-Miami Beach-Kendall, Fla.)

Cost of Living: 26 of 50

Housing Opportunity: 46 of 50

Unemployment Rate: 39 of 50

Average Salary: 31 of 50

~~

No. 4: New York

(New York-White Plains-Wayne, N.Y./N.J.)

Cost of Living: 47 of 50

Housing Opportunity: 50 of 50

Unemployment Rate: 37 of 50

Average Salary: 6 of 50

~~

No. 5: Providence, R.I.

(Providence-New Bedford-Fall River, R.I.)

Cost of Living: 26 of 50

Housing Opportunity: 28 of 50

Unemployment Rate: 48 of 50

Average Salary: 37 of 50

~~

No. 6: Riverside, Calif.

(Riverside-San Bernardino-Ontario, Calif.)

Cost of Living: 23 of 50

Housing Opportunity: 34 of 50

Unemployment Rate: 49 of 50

Average Salary: 26 of 50

~~

No. 7: Long Island, N.Y.

(Nassau-Suffolk, N.Y.)

Cost of Living: 40 of 50

Housing Opportunity: 48 of 50

Unemployment Rate: 17 of 50

Average Salary: 24 of 50

~~

No. 8: Cleveland, Ohio

(Cleveland-Elyria-Mentor, Ohio)

Cost of Living: 32 of 50

Housing Opportunity: 5 of 50

Unemployment Rate: 44 of 50

Average Salary: 40 of 50

~~

No. 9 (tie): San Diego, Calif.

(San Diego-Carlsbad-San Marcos, Calif.)

Cost of Living: 35 of 50

Housing Opportunity: 41 of 50

Unemployment Rate: 27 of 50

Average Salary: 16 of 50

~~

No. 9 (tie): Newark, N.J.

(Newark-Union, N.J./Pa.)

Cost of Living: 40 of 50

Housing Opportunity: 44 of 50

Unemployment Rate: 23 of 50

Average Salary: 12 of 50

~~

No. 11: Philadelphia, Pa.

(Philadelphia, Pa.)

Cost of Living: 35 of 50

Housing Opportunity: 38 of 50

Unemployment Rate: 23 of 50

Average Salary: 21 of 50

~~

No. 12: Portland, Ore.

(Portland-Vancouver-Beaverton, Ore.)

Cost of Living: 19 of 50

Housing Opportunity: 39 of 50

Unemployment Rate: 28 of 50

Average Salary: 30 of 50

~~

No. 13 (tie): Memphis, Tenn.

(Memphis, Tenn./Miss./Ark.)

Cost of Living: 8 of 50

Housing Opportunity: 15 of 50

Unemployment Rate: 42 of 50

Average Salary: 48 of 50

~~

No. 13 (tie): Tampa, Fla.

(Tampa-St. Petersburg-Clearwater, Fla.)

Cost of Living: 16 of 50

Housing Opportunity: 22 of 50

Unemployment Rate: 38 of 50

Average Salary: 37 of 50

~~

No. 15: Orlando, Fla.

(Orlando-Kissimmee, Fla.)

Cost of Living: 5 of 50

Housing Opportunity: 50 of 50

Unemployment Rate: 32 of 50

Average Salary: 45 of 50

~~

No. 16: St. Louis, Mo.

(St. Louis, Mo./Ill.)

Cost of Living: 28 of 50

Housing Opportunity: 11 of 50

Unemployment Rate: 35 of 50

Average Salary: 36 of 50

~~

No. 17: Jacksonville, Fla.

(Jacksonville, Fla.)

Cost of Living: 11 of 50

Housing Opportunity: 17 of 50

Unemployment Rate: 35 of 50

Average Salary: 44 of 50

~~

No. 18: San Francisco, Calif.

(San Francisco-San Mateo-Redwood, Calif.)

Cost of Living: 46 of 50

Housing Opportunity: 49 of 50

Unemployment Rate: 8 of 50

Average Salary: 2 of 50

~~

No. 19 (tie): Boston, Mass.

(Boston-Quincy, Mass.)

Cost of Living: 45 of 50

Housing Opportunity: 37 of 50

Unemployment Rate: 13 of 50

Average Salary: 9 of 50

~~

No. 19 (tie): Warren, Mich.

(Warren-Troy-Farmington Hills, Mich.)

Cost of Living: 28 of 50

Housing Opportunity: 2 of 50

Unemployment Rate: 46 of 50

Average Salary: 28 of 50

~~

http://www.dqnews.com/Articles/2009/News/California/Southern-CA/RRSCA090415.aspx

http://www.forbes.com/2009/05/06/cities-expensive-top-lifestyle-real-estate-overpriced-cities_print.html

http://www.latimes.com/business/la-fi-homes5-2009may05,0,2234983.story

http://www.socalmultiunitrealestateblog.com/?p=361

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BE HAPPY IF YOU OWN REAL ESTATE! LOS ANGELES WINS AS THE MOST OVERPRICED HOUSING MARKET IN THE U.S.

By Jodi Summers

Los Angeles is good at topping lists…best weather, prettiest people, throws the best party… recently, Energy Star noted that we topped the list of energy efficient cities. Now, the news is more infamous than famous…like being named to the worst dressed list. Forbes says that Los Angeles is the most overpriced city in the United States, citing “…bloated housing prices, lofty living costs and unemployment rates among the highest in the nation…”

But the weather is perfect here…and traffic will improve… and there is good news for those looking to buy property. According to reliable sources like DataQuick information services, our home prices are leveling off, noting that the median price paid for a home was unchanged from January and February, “indicating that the market may be exploring price floor levels.”

It has been reported that a total of 19,486 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 27.9 percent from 15,231 for the prior month, and up 52.1 percent from 12,808 for March 2008, according to MDA DataQuick of San Diego.

“…Go to Southern Cal, for example, we’re seeing a floor in pricing,” confirms Jeffrey Mezger, chief executive of builder KB Home. “We don’t see prices going down right now, which is a good thing, because then you can set a baseline.”

Truth be told, government- insured, FHA mortgages made up 37.8 percent of all purchase loans in March, up slightly from a revised 37.5% in February and up from 10.1% in March last year. And, regionwide, foreclosure resales accounted for 55.4 percent of March’s resales activity.

The median home price in the Los Angeles metro area has dipped from $525,000 to $319,000 over the last two years, Forbes noted that we still face one of the least affordable housing markets in the country. According to the NAHB/Wells Fargo’s Housing Opportunity Index, only New York, Long Island, N.Y., and San Francisco are more expensive.

Our housing issues are an over-the-top version of what’s happening, to lesser degrees, in the rest of the nation. Our unemployment rate is around 10.3%, right up there with Riverside. All of those new, mid-range housing projects are like fallow because of the lack of work.

“The unemployment [in Southern California] is definitely driven by the housing bust,” says Lee. “Prices are collapsing, but if you’re looking at buying a house, it’s still expensive.”

And that’s why we head up the over-priced housing market. Pathetic thing is, Chicago is second on the list; their weather sucks and the lifestyle is less dynamic than other list toppers like Miami (3) and New York (4)…

“For the average professional, New York’s premium is not as high as you’d expect, given the cost of living,” says Al Lee, director of Quantitative Analysis at PayScale.com. “The premium for a software developer in New York is actually less than it is in Seattle, and about the same as it is in Atlanta.”

Forbes came to this conclusion after analyzing earnings potential and living expenses in the 50 largest continental U.S. metropolitan statistical areas and metropolitan divisions–geographic entities defined by the U.S. Office of Management and Budget for use by federal agencies in collecting, tabulating and publishing federal statistics. Sounds official and impressive, doesn’t it.

Sources

http://www.dqnews.com/Articles/2009/News/California/Southern-CA/RRSCA090415.aspx

http://www.forbes.com/2009/05/06/cities-expensive-top-lifestyle-real-estate-overpriced-cities_print.html

http://www.latimes.com/business/la-fi-homes5-2009may05,0,2234983.story

http://www.socalmultiunitrealestateblog.com/?p=361

REAL ESTATE DEVELOPERS IMPACT BY BERNIE MADOFF’S “PONZI SCHEME”

REAL ESTATE DEVELOPERS IMPACT BY BERNIE MADOFF’S “PONZI SCHEME”

by Jodi Summers

Several major East Coast Real Estate Developers have been named as victims in Bernard Madoff’s complex Ponzi scheme, which is rumored to have stripped investors of $50 billion in assets.

According to GlobeSt.com this list includes:

· Larry Silverstein, the World Trade Center developer;

· The Wilpons and Rechlers families;

· Brokers at Newmark Knight Frank and CB Richard Ellis–including Stephen Siegel, chairman of worldwide operations there,

· New Jersey developer Fred Daibes is rumored to have lost a significant amount of money;

· Mort Zuckerman, the chief executive of Boston Properties;

· Fred Wilpon, who owns the Mets and is head of Sterling Equities;

· Steven Simkin, a partner at the New York law firm of Paul, Weiss, Rifkind, Wharton & Garrison and chairman of the firm’s real estate department;

· A number of limited real estate partnerships in DC are also among the supposed victims.

· Other recognizable names on the list include John Malkovich, Sandy Koufax and Tim Teufel, - if these are the actor and baseball players, respectively, is unconfirmed, as is Larry King, the talk-show host, Frank Lautenberg, the Democratic senator from New Jersey, and Mark Green, a former public advocate of New York City.

Madoff was known to have focused on the rich and famous, sometimes requesting as much as a $20 million minimum.

A large number of the developers who invested with Madoff are reported to have pledged securities held by him for development projects. It has yet to be determined whether the actions of one person, will again impact bank lending criteria.

The complete client list of Madoff has been provided by the Wall Street Journal:

http://online.wsj.com/public/resources/documents/madoffclientlist020409.pdf

Info courtesy of:

http://www.globest.com/news/1341_1341/newyork/176748-1.html

https://ecf.nyeb.uscourts.gov/

http://designdepartment.wordpress.com/2006/09/07/

http://marketplace.publicradio.org/display/web/2006/10/27/down_in_debt/

http://www.observer.com/term/25509

http://gothamist.com/2007/09/07/revised_vision.php

http://blog.lib.umn.edu/mcgin017/blog/fall_2008/honors_intro_to_philosophy_fall_08/

City of Los Angeles Examines Tenant Right of First Refusal for Sale of Buildings

City of Los Angeles Examines Tenant Right of First Refusal for Sale of Buildings

by Jodi Summers

TOPA (Tennant Opportunity to Purchase) was heard at L.A. City Council Housing Community and Economic Committee earlier this year and it was recommended that further study be done “due to the success of Washington D.C.’s TOPA law and similar programs in Maryland.”

The Action Apartment Association points out, “As our industry knows, DC’s program has significant defects in with, including noteworthy delays in the sale process, unmitigatable legal exposure for property owners and vulnerability to fraud and abuse for the tenants.”

TOPA requires owners of rental occupied units to offer tenants the right-of-first-refusal when the owner decides to sell the building. Specifically, owners are required to notify tenants and the Mayor’s Office of the opportunity to purchase, which initiates a process that provides the tenants time to organize, raise funds and solicit outside assistance. (As was done unsuccessfully with Lincoln Place in Venice.)

Additionally, TOPA provides tenants the option to assign their rights to a third-party. In other words, the Action Apartment Association noted, “tenants and tenant organizations have the ability to sell their rights for payment (typically cash) or partner with a developer/ non-profit in the purchase of the building.”

This legal debate will continue throughout the year. We will keep you posted.

For more info on the Action Apartment Association, please visit www.action-wam.com.

BUY? SELL? RECESSION?

BUY? SELL? RECESSION?

We guess they’re going by the “what we don’t know can’t hurt us” philosophy.

–

From: CNN Breaking News 

Sent: Monday, December 01, 2008 9:26 AM

– The U.S. entered a recession in December 2007, according to the National Bureau of Economic Research.

–

Since we’ve been in a recession for a year, it doesn’t seem to feel so bad.

Surprise + happy holidays.

ON DECK FOR THE NEW PRESIDENT: COLLAPSING FORECLOSURES AND RISING HOME VALUES

ON DECK FOR THE NEW PRESIDENT: COLLAPSING FORECLOSURES AND RISING HOME VALUES

Recently, the Today Show, NBC’s traditionally reliable source of information, reported that nearly 20% of homeowners are upside down in their mortgages. Forget how we got there. What the next president inherits is a state of panic where people don’t know how they are fiscally going to make it through the next phase.

It is critical that the next president – be it John McCain or Barak Obama, takes an optimistic view that the housing market can indeed be fixed. Issues must be tackled piece by piece - rampant foreclosures, collapsing residential property values, and bad banking judgement. And these elements were part of an even larger governmental issue – what Inman News calls, “too much liquidity chasing bad loans in an unaffordable housing market.”

The economic shift has solved issues of excess liquidity + bad loans. Now the elements specifically affecting the housing market must be tackled. The pendulum of bad banking judgement has now swung to the other extreme, and only the best qualified can get a loan.

On deck for the new administration, to rising foreclosures and collapsing home values into collapsing foreclosures and rising home values. He needs to turn the current wave of fear into optimism.

Inman News has come up with a to-do list for the next occupant of the Oval Office, which includes:

· Institutionalize loan modification activity

· Rebuild faith in the secondary mortgage market

· Expand the Scope of the FHA

· Bring dignity to renting

· Re-tool federal housing programs

· Re-think regulation

· Beef up RESPA

· Housing leadership

· Resist quick housing stimulus packages

Please go to http://www.inman.com/news/2008/10/29/what-next-president-must-do for all the details.

SANTA MONICA RENT CONTROL GRIPE

By Jodi Summers

It is astounding how local, state and federal governments hold landlords responsible for so many things.

After a brief meeting and credit check a landlord is expected to take on the liabilities of a virtual stranger, and then be held responsible because that tenant is an Illegal aliens, smokes, has pets, trims a neighbor’s tree, has a bad temper.

Our city’s Rent Control board do their best to make multiunit ownership undesirable Santa Monica, CA.

As an incorporated city, Santa Monica has created their own special set of rules, which can be a deterrent to unseasoned property investment owners and developers.

This week’s grumble, instead following the City of L.A. example and allowing landlords to raise rent 4% every year, the City of Santa Monica devises an annual General Rent Adjustment which seldom if ever equals the annual cost of living increase. For example, this year’s proposed General Rent Adjustment is 2.7% .