Please Do Not do the following:
If replacing the batteries doesn’t work or you have other issues please open a maintenance request through your tenant portal.
Proposition 19 was passed and as part of the measure, children who inherit their parents’ houses will no longer receive a property tax break if they intend to keep it as a second home or rent it out.
This has a serious effect on the traditional parent-child exemption from reassessment under the original Proposition 13.
Previously, transfers of the principal residence of a parent, and up to $1 million of assessed valuation of other property, passed to children without being reassessed for property tax purposes, thereby preserving the benefits of Proposition 13 for heirs and trust beneficiaries.
Now, the exemption from property tax reassessment for property inherited from a parent (or grandparent if the parents are deceased) will only apply if the child occupies the real property and files a homeowner's exemption application within one year.
I hope this was helpful and feel free to reply or call me at 562.430.0609 with any questions you may have regarding this topic.
In a desire to open up rental housing and provide home owners with more “use” choices for their property, AB 3182 is currently moving through the California Assembly. Authored by Assembly member Philip Ting of (D) San Francisco Assembly Bill 3182; which (if passed) restricts the ability of homeowners in any HOA to prohibit or limit rentals (with just 2 minor exceptions). Ting represents the state's 19th District, which includes the west side of San Francisco, in addition to Broadmoor, Colma, Daly City, and South San Francisco.[1] Ting, is currently the Chair of the Assembly Committee on Budget.
The bill proposes to make several amendments to current Davis-Stirling Act and Civil Code Section 474 —which was enacted in 2012 to exempt current owners from enacting prohibitions on leasing of HOA residences.
The bill would remove the current “grandfathering” and make several other changes regarding rentals in HOAs. Rental bans or limits are normally imposed by HOAs after they are voted on by the homeowners within the community.
AB 3182 would make rental bans illegal, regardless of how the owners vote to operate their association. However, AB 3182 would leave in effect two restrictions:
1) Short-term / "vacay" rentals (30 days or less) could still be banned
2) HOAs are permitted to have a rental limit of 25% of the total units
Note: In a real-life scenario this 2nd restriction appears to be unenforceable for several reasons.
For example:
If a 100-unit complex has 24 units (24%) currently rented, then 2 homeowners put up “for rent” signs; which of the 2 will be allowed to actually rent out the unit?
1) The one who advertised first?
2) Or, the first whose tenant actually signed a lease?
3) Or the first with a renter to put down a deposit?
4) Do 2nd homes count as rentals in this scenario? Or not?
5) How about relatives living in the unit but not paying rent? Is that unit considered a rental? Or owner “occupied”? Etc. Etc. Etc. ad nauseum!!!!!!!! Who watches the Watchers?
Most HOAs lack “capable leadership” for a host of reasons. Many residents are to busy to serve, not qualified, just not interested in serving for a number of reasons.
So (as with the aforementioned example) who would be specifically designated to enforce the 2nd restriction? And whomever it is, they will be a “very popular” person (pariah) indeed. Oh btw: since few communities are built in EXACTLY round numbers does the HOA allow 25.1% or must it be 24.99999% or less. And who does the math on THIS issue? See where I’m going with this? So, scratch restriction 2.
To track the bills progress click here To find and find your local California assembly member click here.
Most U.S. real estate markets are booming. Yet I own apartment buildings in a city where there’s a recession, and it’s hurting me.
Wherever you’re investing in real estate, it will face a future economic downturn sometime, so there’s a lesson in this for you.
First – how could I be the one invested in a “down” market? Aren’t I the one always talking about how in real estate investing, the geographic market is even more important than the property?
Well, thankfully I’m invested in multiple U.S. cities for diversification. Most real estate investors only invest in their home market. That’s riskier than you know.
Chances are that you aren’t invested in my hometown income property market of Anchorage, Alaska like I am. With a population of 300,000, it’s the United States’ northernmost city of that size. Anchorage is in an economic recession.
The problem with Anchorage is that the economy is not well-diversified. It’s heavily dependent on oil extraction. You probably know that oil prices have been slashed in half in recent years. That meant oil companies became less profitable and consequently announced layoffs, which led to the recession.
My Anchorage apartment buildings don’t cater to higher-paid oil employees. But it still hurts me.
You see, when an “oil dad” is laid off and his entire family leaves the area, that means there are fewer people to dine at restaurants, buy cars, and patronize hair stylists. My modest apartments cater to people like food servers, auto mechanics, and hair stylists. So there’s a “trickle-down” effect.
Anchorage lost 1,500 residents in the last year. That’s one-half of one percent. Poof. Gone. It promises to continue or even worsen.
Let’s look at Anchorage’s recent year-over-year net employment change, sector-by-sector, and see what this small case study can teach you, wherever you’re interested in investing:
Anchorage Business Sector | Year-Over-YearJob Gain / Loss |
Oil & Gas | -700 |
Construction | -700 |
Professional and business services | -1,100 |
Retail Trade | -300 |
Transportation | -100 |
Government | -100 |
Financial activities | -100 |
Leisure and Hospitality | -100 |
Health Care | +900 |
Source: Anchorage Economic Development Corporation
What stands out? It’s the fact that although Anchorage has suffered net job losses, there is still a gain in the health care sector.
This isn’t just happening in Anchorage. Nationally and elsewhere, as the population ages, there is outsized demand for medical jobs.
What’s your takeaway as a real estate investor?
Well, most major metropolitan areas have portions of town where health care jobs are concentrated in medical campuses. Buy property near medical districts, and you’ll be hedged against larger economic downturns.
Back when Anchorage’s economy was healthy, I purchased apartment buildings adjacent to the medical district. So although the market rent amount is lower now than it was a few years ago (there are fewer dollars circulating in Anchorage’s recessed economy), I’m able to keep my properties nearly 100% occupied – even in the midst of a recession.
In real estate investing, the market is more important than the property. More accurately, it’s the submarket that’s even more important. A metro area’s medical submarket is a smart place for you to invest over the long-term.
This was completely predictable. When I purchased the apartment buildings years ago, new employment concentrated in the medical sector was already a trend.
This trend is still forecast for years into the future. Even futurists say that it will be difficult for robots to simulate what nurses do.
When I hosted Ken McElroy, the Rich Dad Advisor for real estate on my popular weekly podcast, he said: “Real estate is dumb and slow.”
I love that line!
It doesn’t take a genius to forecast this. Medical = Jobs = Occupied units = Rent-paying tenants = Durable rent income streams = More profitable rental properties, even in a recession.
What are your takeaways?
The fact that I practice these two bullet points has kept me profitable and resilient, even in a recession. It will help ensure your prosperity in the long-run too.
Here’s to your wealth and success.
Without mincing words, times are scary. People are afraid, and beyond that there is a significant amount of uncertainty about what is to come. In times like these, it’s important to pull together as a community and support each other in any way possible. This includes the small businesses in your community, since they are an essential part of what keeps your community going; without your support during the darker times, some of them may not survive to see the sun come out again.
How are you supposed to do that in a limited-contact or social isolation scenario, though? Fortunately, there are still several options available that will help you to help those local businesses that keep your community running.
One great way to support local businesses is to buy gift cards and gift certificates even if you don’t need them right now. This allows you to make a simple purchase that minimizes potential contact while giving the business that issued the certificate some much-needed income. Once things improve, you can then return to the business and take your time using the gift cards you purchased. As an added bonus, they’re also easy to give to others if you know someone who’s in need.
Another good option is to buy branded merchandise such as t-shirts or coffee mugs that advertise the business. On top of the usual benefits of making a purchase, these items help to advertise the business as well. As an added bonus, buying branded merchandise helps you to show the business owner that you’re there to support the business specifically.
Can’t get out? Check and see which businesses in your area offer online ordering and make use of that feature. If you can’t order online, give them a call and inquire about placing an order. You can even make arrangements for delivery or pickup while you’re on the phone.
A lot of people are relying on delivery and carry-out orders these days, especially from local restaurants. Unfortunately, a lot of people tip very little if at all for these services. Remember that a lot of employees are facing reduced hours in this stressful time, and every dollar helps. Be sure to tip even if you normally wouldn’t, and be generous when you do.
There are many types of support. Financial support is definitely important for local businesses trying to stay open, but not everyone can help out financially. If you can’t afford to shop right now, try to get the word out on social media and other platforms. Share posts, talk about the businesses that you’d like to support and even post pictures of yourself wearing some branded merch. Every little bit helps, and someone might see your post and decide that they need to support local shops as well.
A major problem that small venues face is the refunding of canceled events. They’ve already spent money on advertising and racked up other costs, and now they’re losing their portion of ticket sales. If you have tickets for an event that was canceled and unlikely to be rescheduled, call the box office and inquire about donating your refund instead. While not all venues will do this, donating your ticket price lets those that do recoup some of what they spent and may even help them to stay open in the face of additional cancellations.
Local businesses are a part of your community, and as such they want to see the community thrive. Situations like this are very stressful for business owners and employees alike, and the last thing that they want to see is people fighting over merchandise or those in need having to do without because someone else hoarded all the toilet paper. When shopping at local businesses, be courteous to other shoppers, maintain a safe distance so no one is crowded, and avoid the temptation to grab everything when you just need one or two items.
If you need to find local businesses and professionals to support, check out HomeKeepr. Not only can you open an account for free, but it will help you to find locals who need your support as well.
01237349
Huntington Beach Property Management
16872 Bolsa Chica Street , Suite 201
Huntington Beach, CA 92649
abbpmllc@gmail.com