Thursday, January 4, 2018

How Does Mountain View Just Cause Eviction Affect A Probate Sale?

BY 
Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194
December 17, 2016 07:38 AM

 
REPORT
Mountain View Probate Apartment







On Nov. 8th Mountain Voters approved Measure V, commonly known as the Rent Control Measure. If you are the Administrator of a Mountain View Probate Estate that has rental property to sell this is a huge deal. You need to know the rules in order to make sure the property is sold without breaking any new laws.

What does restricting rental price increases have to do with selling a Mountain View rental in Probateyou may ask? Well, I’ll tell you.


Measure V relates to not only rent control, but also JUST CAUSE EVICTION.

Just Cause Eviction means that tenants cannot be asked to vacate just because the lease is up or they are on a month to month rental and you give 30 or 60 days notice (if they have been there a year or more).

Tenants can only be told to leave a Mountain View Rental Property under the following circumstances:

  1.      Failure to pay rent or other breach of lease
  2.      Continuing failure to give landlord access
  3.      Repairs that will last over 30 days that are needed for code upgrades or health and safety reasons. NOTE: COSMETIC REPAIRS ARE NOT INCLUDED IN THIS EXEMPTION. This would include a kitchen or bath re-model to make the property more valuable.
  4.      Owner or family member going to occupy the entire property
  5.      Withdrawal from rental market with 120 day notice to tenant, unless over 62, disabled, or a tenant for 5 years or more. In these circumstances you need 1 year notice.

The good thing is that single family homes, condos, and duplexes are exempt from both rent control and Mountain View Just Cause Eviction. If you are an Administrator of a Mountain View Probate Estate that has a four- plex or more units to sell Mountain View JUST CAUSE EVICTION rules will apply to the estate.

Some things you should NOT do before selling the building are:

  1.      Try to evict the tenants because they make the building look messy.
  2.      Try to evict the tenants because the property is dated and you want to upgrade it before putting it on the market.
  3.      Raise the rents above the allowable rent increase so the CAP rate looks better and makes the property more valuable.

  1.      Paint the exterior
  2.      Make sure the tenants do not leave personal property outside the building
  3.      Upgrade the landscaping
  4.      Give the tenants an incentive to keep their apartments clean and allow showings.

This law is new, and takes effect Dec 23rd. There is an emergency ordinance that was passed Nov 16th to keep landlords from evicting tenants in order to raise rents on vacant apartments before that date, so if you are reading this before Dec 23rd you are out of luck anyway.

Just remember the Mountain View rental market is strong, and even with rent control and Just Cause Eviction there will be buyers for your Mountain View Apartment in Probate so relax, hire a great real estate agent who knows Probate (like myself) and let the process work itself out.

If you have any questions about selling or buying Probate property in Santa Clara or San Mateo County please feel free to contact me.

Marcy Moyer
Keller Williams Realty
650-619-9285
www.marcymoyer.com

Posted by at No comments:

How Does East Palo Alto Just Cause Eviction Affect A Probate Sale?

BY 
Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194
December 23, 2016 10:53 AM


East Palo Alto Probate Sale
  
If you are the Administrator of an East Palo Alto Probate Estate that has rental property to sell you need to be aware of the portion  the East Palo Alto Rent Control law that pertains to Just Cause Eviction. You need to know the rules in order to make sure the property is sold without breaking any laws.

East Palo Alto has both RENT CONTROL and JUST CAUSE EVICTION

Just Cause Eviction means that tenants cannot be asked to vacate just because the lease is up or they are on a month to month rental and you give 30 or 60 days notice (if they have been there a year or more). THEY CAN NOT BE EVICTED EVEN IF THE HOME IS BEING SOLD.

Tenants can only be told to leave an East Palo Alto Rental Property under the following circumstances:

1.)    Failure to Pay Rent
2.)    Continuous Violations of the Rental Agreement 
3.)    Willful or Substantial Damage to the Unit or Premises
4.)    Refusal to Sign a Substantially Identical New Rental Agreement (Upon Expiration of Prior Rental Agreement)  
5.)    Continued Disorderly Conduct
6.)    Refused the Landlord Access to the Unit
7.)    The landlords right to undertake substantial, necessary repairs as permitted by the City or East Palo Alto
8.)    Removal of the Rental Unit from the market by demolition as permitted by the City of East Palo Alto
9.)    Landlord or immediate family member wishes to occupy the unit as their primary/principal residence
10.)  Failure to vacate the unit under a temporary rental agreement


While single family homes and condos are exempt from rent control they are not exempt from Just Cause Eviction. If you are an Administrator of an East Palo Alto Probate Estate  JUST CAUSE EVICTION rules will apply to the estate.

Some things you should not do before selling the building are:

  1. Try to evict the tenants because they make the building look messy.
  2.  Try to evict the tenants because the property is dated and you want to upgrade it before putting it on the market.
  3.  Raise the rents above the allowable rent increase so the CAP rate looks better and makes the property more valuable.

Some things you can do when you are selling an East Palo Alto home in Probate.
  1.           Paint the exterior
  2.           Make sure the tenants do not leave personal property outside the home.
  3.           Upgrade the landscaping
  4.           Give the tenants an incentive to keep their clean and allow showings.
  5.           Offer the tenants money in exchange for voluntarily leaving the home. My clients have offered to pay the tenants enough to move. They have paid for moving vans, deposits on new rentals, first months rents, and additional financial incentives.

If the tenants do not want to move you will need to sell the property with the tenants in place and the new buyer can either continue their rental or get the tenants out because the new buyer or a family member is moving in.

Just remember the East Palo Alto real estate market is strong, and even with rent control and Just Cause Eviction there will be buyers for your East Palo Alto home in Probate so relax, hire a great real estate agent who knows Probate (like myself) and let the process work itself out.

If you have any questions about selling or buying Probate property in Santa Clara or San Mateo County please feel free to contact me.
Marcy Moyer
Keller Williams Realty
650-619-9285
www.marcymoyer.com
Posted by at No comments:

Why San Jose Condos Make Good Rental Properties

Posted by at No comments:

Buying a San Jose Condo That Is In Litigation

BY 
Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194
January 02, 2017 10:38 AM

Brickyard San Jose
Developers don’t build condos with the intention of sloppy work that they hope no one will notice. But never the less, they almost always get sued in about year 8-9.

In California, new construction comes with a 10 year warranty on latent defects on the structure. In plain terms home owners and homeowner associations have 10 years to sue a developer if they find problems with the structural components of a building such as the roof, walls, plumbing or electrical systems, garages, decks, etc.

So, around year 8, if no problems have emerged, many HOA communities will hire a company to look at the building and see if there are potential problems that can happen due to faulty construction. If there are known problems they hire someone to try to figure out the fixes to the issues.

The communities will approach the builder to fix the discovered issues, and if the builder does not feel there is a problem, or the problem is not their responsibility then a law suit may be filed.

Once the suit is filed most lenders will not make loans on the property. The few who do will charge interest rates 1 to 2 pts higher than a traditional lender.

This can put the brakes on sales in the development, and will temporarily depress the price.

If you are a cash buyer, buying a San Jose Condo in litigation for a rental property can be a good idea if you follow these steps:

  1.      Look at the report that explains what the problems are that need to be addressed. If the issues are ones that do not need immediate attention that is better. If the plumbing system has failed, or there is major water intrusion into the building the homeowners may be hit with a special assessment during the multi year lawsuit. Even if the HOA of the San Jose condo in litigation wins the individual homeowners may not be reimbursed.
  2.      Find out what the estimated cost to repair the issues are for the San Jose condo in litigation. Take that number and divide by the number of units, or if available the percentage of ownership the condo in question has. So if the estimate is 10 million dollars, and there are 500 units with equal shares then each unit would be responsible for about 20 thousand in repairs if all units pay condo fees equally.
  3.      Find the market value of the condo you are interested in by looking at the most recent sale of that model before the San Jose condo litigation.
  4.      Subtract the amount of potential assessment.
  5.      If the market is slowing down overall subtract more.
  6.      Explain that you are taking the risk that the HOA of the San Jose Condo in litigation will not prevail in court, and even if they do the homeowners may be assessed before then. You are taking that risk, and buying when most others are not able. You are betting that you will not be assessed.
  7.      Even in a very hot market, this is a good way to get a better price on a San Jose condo in litigationthan you would otherwise be able to.
  8.      It is safest to do it when the builder is a very large and stable company, rather than a less well capitalized entity that is more likely to go bankrupt.

There is obviously risk involved, but since such a large percentage of builders get sued, it can be a good long term investment. For example, The Brickyard in San Jose was in litigation in 2011-2012. During 2011 one bedroom condos sold for $140,000-$180,000. The litigation was setteled and in 2016 one bedrooms condos sold for $365,000-$395,000. If you bought a condo for at The Brickyard with cash in 2011 for  you would have at least doubled your money in 5 years plus get an additional $800 to $1500 a month profit in rent over the last 5 years. And this was a building with serious problems that have now been fixed with proceeds from the successful law suit.
Most suits are settled, the deficiencies are fixed, and the San Jose condos in litigation go on to appreciate.

If you have any questions about buying a San Jose condo in litigation as a rental property please feel free to contact me.
Marcy Moyer
Keller Williams Realty
650-619-9285
www.marcymoyer.com
Posted by at No comments:
Subscribe to: Posts (Atom)