Dennis, I'm a long-time fan. You did an eviction for me when I was in my early 20's and a roomer was terrorizing my elderly father in his home. You also helped to evict a group of people that were taking advantage of my elderly uncle. Thank you so much for your help. You are truly a hero!
26:20 I love this voluntary vacate discussion and how to calculate the buyout value! I would appreciate seeing more examples of buyouts illustrated. Perhaps we can hear from landlords and their success stories buying out tenants and how they did it well. The banking interest got me thinking! We need more samples of this because the math is simple, but just the way a beginning real estate property income investor would feel learning how to underwrite a property, it's easy to get confused about why or how much to pay a long-time below-market tenant to vacate. It is an incentive to vacate the unit voluntarily. I like the idea of buying a vacant building in order to choose whether to flip the building by converting in to condos. The other alternative would be to sell the vacated building, or buy it partially vacated by doing the buyouts myself, then get the partnerships to demolish the building, in order to build more units, brand new, safer, cleaner, amenities on steroids, and aesthetic. Sci-Fi world is coming, so why not create beautiful new apartment buildings that keep people safe and joyful?
Did you say you can increase 10% for a new occupant in addition to the 3-4% annual allowed RSO increase? When additional occupants are added after the first, does one charge 10% per person based on the original lease amount for a single person? E.g. If rent is $1,000 for sole person on the lease and it increases $1,100 for 2nd occupant, would a 3rd occupant bring it to $1,200 or $1,210? Does it matter whether or not there is a written lease? Does it matter if the lease dictates a higher amount than 10%? Thank you for clarification.
This is your best sermon yet! I'm lucky to have found your show; I always learn something!
Thank you! It is a privilege to share.
Dennis, I'm a long-time fan. You did an eviction for me when I was in my early 20's and a roomer was terrorizing my elderly father in his home. You also helped to evict a group of people that were taking advantage of my elderly uncle. Thank you so much for your help. You are truly a hero!
26:20 I love this voluntary vacate discussion and how to calculate the buyout value! I would appreciate seeing more examples of buyouts illustrated. Perhaps we can hear from landlords and their success stories buying out tenants and how they did it well. The banking interest got me thinking! We need more samples of this because the math is simple, but just the way a beginning real estate property income investor would feel learning how to underwrite a property, it's easy to get confused about why or how much to pay a long-time below-market tenant to vacate. It is an incentive to vacate the unit voluntarily. I like the idea of buying a vacant building in order to choose whether to flip the building by converting in to condos. The other alternative would be to sell the vacated building, or buy it partially vacated by doing the buyouts myself, then get the partnerships to demolish the building, in order to build more units, brand new, safer, cleaner, amenities on steroids, and aesthetic. Sci-Fi world is coming, so why not create beautiful new apartment buildings that keep people safe and joyful?
Did you say you can increase 10% for a new occupant in addition to the 3-4% annual allowed RSO increase? When additional occupants are added after the first, does one charge 10% per person based on the original lease amount for a single person? E.g. If rent is $1,000 for sole person on the lease and it increases $1,100 for 2nd occupant, would a 3rd occupant bring it to $1,200 or $1,210? Does it matter whether or not there is a written lease? Does it matter if the lease dictates a higher amount than 10%? Thank you for clarification.
You should increase the rent by 10% on the base amount only. Under RSO the most you can charge is 10% of what the lease states, whatever is LOWER.
4 percent in LA?? RSO is 4 percent??
@eze289 RSO is 4% but The 10% is when there is an additional occupant brought into the tenancy.