FROM LANDLORD LESSONS PAGE 3 Rent control seminars geared for landlords both new and old
MAIN LIBRARY Fresh on the Santa Monica apartment scene, new landlords received a lesson here in Rent Control 101 this week.
Tuesday marked the third installment in a series of quarterly seminars staged by the city’s Rent Control Office to educate apartment owners — old and new — about the complicated ins and outs of the city’s rent control law.
“We noticed that a proportion of the disputes we were receiving and hearing had to do with when property changed hands,” said Christy Engels, a hearing officer and mediator who facilitates the seminars.
The seminars target new apartment owners, but during the first two seminars, many of the attendees turned out to be experienced owners, managers, realtors and prospective buyers.
Spearheaded by Engels, a staff attorney and rent control information officer, the two-hour workshop covered everything from how to calculate an annual rent increase to maintenance responsibilities to everyone’s favorite topic — how to apply for an exemption from the rent control law.
Interested in purchasing a two unit building in Ocean Park, Joyce Simmons, of Los Angeles, sat in on the meeting to brief herself on a landlord’s responsibilities in paying tenants a relocation fee if they are forced to leave their homes.
“I understand the need to pay relocation fees,” she said. “But I don’t understand why it’s such a burdensome process for the purchaser [of the building].”
Simmons is interested in buying two single-family rental houses, but is having mixed feelings after what she learned at the meeting about her responsibilities in paying relocation fees to the current tenants. The two houses under consideration are in poor shape. They’re filthy, cluttered and are consumed with the smell of smoke that’s so intense “you need a gas mask to go in there,” she said.
“I wanted to learn the ins and outs of the nonsense,” she joked.
The feelings expressed about the rent control law were mixed. Some agreed that the law is necessary to help the low-income residents who need it most, others argued the law is outdated and burdensome to landlords.Some even theorized that the law, meant to protect tenants, will backfire down the road.
Because of the stringent rent control laws in the city, developers will stop building rental units in Santa Monica and opt for condominiums instead. The demand for rental units will increase and apartment hunting will become competitive, said long-time landlord Isaac Gabriel after the seminar. Landlords will then have the upper hand when vacancies appear and will be able to determine rent based on the demand.
“It will hurt tenants in the long run and benefit landlords,” Gabriel said.
Several tenants also made an appearance at the rent control seminar, saying they were interested in learning more about the law in case they ever decide to buy some property in Santa Monica.
“I wanted to see, if I ever do become an owner in Santa Monica, what problems I would face as an owner,” said Tim Preis, who rents an apartment downtown.
Preis’newfound knowledge of rent control didn’t dissuade his interest in buying a building someday. Santa Monica would be a great place to purchase an apartment building, he said, because it’s near the ocean and safe.
About 35 people registered for the seminar on Tuesday, down by 15 or so from the 50 people who came to the first two workshops in the summer and in October. The Rent Control staff is currently preparing to kick off a series of similar seminars geared specifically for tenants in the future.
“It would be an overview of the rent control, but with more of an emphasis in what tenants would be interested in,” Engels said.
Originally published in the Santa Monica Daily Press print edition on January 26, 2007. Read the original PDF.