Coming into the new year, there are plenty of things to stay aware of if you’re an apartment owner. With more than 7,500 apartment owners and landlords residing within Long Beach alone, our goal at Sage Real Estate is to keep you updated on new policies and new laws that are relevant to your specific circumstance. Today, I’m joined by industry leader Mike Murchison as we attempt to break down and understand these new changes that have been ushered in following the new year.
Who is Mike? (Murchison Consulting)
Mike Murchison is the Owner & President of Murchison Consulting, serving the Long Beach area. Having years of experience and firsthand knowledge of the Long Beach real estate market, Mike is more than qualified to share some thoughts and predictions
There are plenty of things to be aware of as a property owner going forward, especially considering how drastically the market has been suppressed by COVID-19. As Long Beach City and Los Angeles County as a whole try to step up containment efforts, there will be more and more constrictions placed upon landlords in general.
New Long Beach Policies & Laws
There have been several new real estate laws implemented recently that will have an effect on landlords. The Tenant Harassment Policy is one such measure that has been put in place to supplement the current eviction moratorium. With Mike’s assistance, a Bad Faith clause was added to the Policy which further protects the rights of apartment owners when they are sued by evicted tenants.
Eviction Moratorium Extension
The eviction moratorium was put in place last year as a means of limiting evictions during COVID-19 by effectively preventing landlords from evicting tenants due to non-payment. With the eviction moratorium set to expire this month, our prediction is that there will almost definitely be an extension set in place to further prevent eviction of tenants. With the way COVID-19 response is going, in all likelihood the extension may even go until the end of 2021. This means that certain apartment owners will go without tenant income for up to 18 months in total. As we move forward, it is also important to note that the City of Long Beach’s rent control measures now fall under Los Angeles County’s jurisdiction and are no longer determined by the city itself.
Long Beach City Council Updates
Considering measures that have been taken in the recent year, it is clear that Long Beach’s city council has a progressive outlook concerning apartment related issues. Because of this, laws and ordinances are being passed that may be seen by some as restrictive and anti-business. Its important to note, however, that the City Council is rather split about these type of issues and now is the time for apartment owners to make their voices heard.
Mike recommends that if you’re a property owner, you should attempt to join local councils and commissions so that your voice may be heard.
Potential New Laws Coming in 2021
As 2021 gets going, there will likely be several new laws introduced relative to apartment owners and real estate investors. The Protective Rental Housing Inspection Program (PRHIP) may have inverse effects on some tenants and Mike’s advice for this is to appeal to inspectors and try to get to know them better.
Upcoming Long Beach Mayoral Election
As of this election, Long Beach’s current mayor, Robert Garcia, faces the very real possibility that he may be stepping down from the Metro Board and even his current position as mayor in order to join the Biden administration in Washington, DC. This means a new mayor will need to be decided in a special election, and there are several potential candidates to consider including Vice Mayor Rex Richardson and Assemblyman Patrick O’Donnell.
New Developments in Long Beach That Can Affect Real Estate Investors
Starting this year, there are quite a number of new developments underway in Long Beach, namely in the downtown area. Increased high-rise construction means there will be new opportunities for real estate investors and new zoning laws in highly populated areas will create a boon in high-end housing development as well. There are also numerous leases that are about to end in the area surrounding the airport, so it will be interesting to see what happens with that.
At Sage Real Estate, our firm specializes in studying the market and the statistics specific to fourplexes in Long Beach. No other firm has taken this approach and we’ve made it our top priority. We’re also the fourplex market leaders, and it’s the reason why when we sell a property, it sells for 10% more and sells 10 times faster. So, if you’d like to learn more, please reach out to us!
