This board has been migrated to our new platform! Check out the new home page at discussion.fool.com or click below to go directly to the new Board on the new site.
I'll be fine as long as the rent can be moved to market rent upon vacancy. While there's been talk of controlling vacant rent increased, nothing has passed. For existing tenants, CA has a YOY rent increase cap of 5%+inflation, usually totaling 7%-8%/year. For the last 20 years my average existing tenant rent increase has been well under 5%. As I explain to my tenants, a rent increase cap motivates me to keep rents close to market so the building sales price doesn't deteriorate. Thus under rent caps I raise rents more and more often.A friend inherited a 4-plex where rents were probably 50% of market. Due to the low rent he probably sold $500k lower than if rents had been at market. The new owner is a young single person. We guess unit-by-unit the new owner will move in, rehab and re-rent at market.
Best Of |
Favorites & Replies |
My Fool |