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LUXURY HOMES
RENOWNED PSYCHIATRIST DR. DANIEL AMEN BUYS NEWPORT DREAM HOME

MARKET: NEWPORT BEACH
ASSET TYPE: SINGLE FAMILY
SALE PRICE: $27,000
BUYER: DR. DANIEL AMEN

The renowned doctor has bought a bayfront mansion in Newport Beach, California for $27 million dollars. The Tuscan-style house was previously owned by auto tycoon Flecher Jones Jr. The stunning home features antique finishes, imported stone, and panoramic coastline views

Shift in regional home prices between July 2022 and August 2022 👇

MULTIFAMILY NEWS
IS LA THE WORST CITY FOR LANDLORDS?

ARTICLE TLDR

• The article explains how rent control laws in Los Angeles limit landlords’ ability to raise rents, evict tenants, and manage their properties, while reducing their property value and income.

• The article argues that rent control reduces the supply and quality of rental housing, creates inefficiencies and inequalities in the rental market, and lowers property values and tax revenues for the city.

• The article concludes that rent control is a nightmare for landlords in Los Angeles, as well as for tenants and the city, and that it is not the solution to the housing crisis.

Why Rent Control Is a Nightmare for Landlords in Los Angeles

If you are a landlord in Los Angeles, you might be feeling frustrated and powerless. You have to deal with strict rent control laws that limit your ability to raise rents, evict tenants, and manage your property. You have to watch your property value and income decline, while your expenses and taxes increase. You have to face constant threats of lawsuits, regulations, and inspections. You have to compete with a shrinking and distorted rental market, where some tenants pay ridiculously low rents, while others can’t find or afford a decent place to live.

Rent control is supposed to protect tenants from unfair rent increases and evictions, but in reality, it does more harm than good. Rent control hurts landlords, tenants, and the city as a whole. Here are some of the reasons why rent control is a nightmare for landlords in Los Angeles:

Rent control reduces supply and quality

Rent control discourages new construction and investment in rental housing, as developers and investors prefer to build or buy properties that are not subject to rent control. This reduces the supply of available units and increases the demand and prices for non-rent-controlled units.

Rent control also reduces the incentive for landlords to maintain and improve their rent-controlled properties, as they cannot recoup their costs through higher rents. This leads to deterioration and blight of the existing housing stock, which lowers the quality and safety of the rental units.

Rent control creates inefficiencies and inequalities

Rent control creates a mismatch between the supply and demand of rental housing, as tenants tend to stay longer in their rent-controlled apartments, even if they are over-housed or under-housed. This reduces the mobility and flexibility of the rental market, as tenants are reluctant to move or relocate for better opportunities or lifestyles.

Rent control also creates unfairness and distortion in the rental market, as some tenants enjoy below-market rents, while others pay above-market rents or face discrimination. This creates a gap between the haves and have-nots, as well as resentment and hostility among different groups of tenants and landlords.

Rent control reduces property values and tax revenues

Rent control lowers the value of rental properties, as landlords cannot charge market rents or sell their properties at market prices. This reduces the equity and wealth of landlords, as well as their ability to refinance or reinvest in their properties.

Rent control also reduces the tax base for the city, as lower property values mean lower property taxes. This affects the city’s budget and services, such as public safety, education, infrastructure, and social programs.

Rent control is a nightmare for landlords in Los Angeles

Rent control is a nightmare for landlords in Los Angeles, as it limits their rights and profits, while increasing their risks and costs. Rent control is also bad for tenants and the city, as it reduces the supply and quality of rental housing, creates inefficiencies and inequalities in the rental market, and lowers property values and tax revenues.

Rent control is not the solution to the housing crisis

NEWS
HOW AN AIRBNB GUEST BECAME A SUPER SQUATTER AND DEMANDED $100K TO LEAVE

Have you ever wondered what would happen if an Airbnb guest refused to leave your property? That is precisely what happened to the owner of a luxurious guest house overlooking the hills of Los Angeles when a guest massively outstayed their welcome, squatting for more than a year and a half. To add insult to injury, the unwanted house guest is refusing to leave until the homeowner gives her a $100,000 relocation fee.

The guest, Elizabeth Hirschhorn, rented the guest house on Airbnb in September 2021 for six months at a rate of $105 a night, with fees bringing the total to $20,7931.

Her Airbnb stay ended in April 2022, but she has been living there rent-free ever since, claiming that the guest house is illegal and unpermitted1.

The owner, Sascha Jovanovic, tried to evict her, but a judge ruled that under the city’s rent stabilization ordinance, he has no legal reason to do so and would have to pay her a relocation fee1.

Hirschhorn’s lawyer demanded that Jovanovic pay her $100,000 to leave, calling it his "cheapest way of getting of the whole ordeal"1.

Jovanovic accused Hirschhorn of extortion and manipulation, saying that she is a smart person who knows how to abuse the system2.

It was revealed that Hirschhorn had been accused of refusing to leave another home in Oakland, California, where she was subletting a room and sued the landlords for negligence and harm to her health2.

This is a shocking story of how an Airbnb guest became a squatter and demanded $100,000 to leave. It shows how some people can exploit the loopholes in the law and cause trouble for homeowners who rent out their properties. What do you think of this case? Do you think Hirschhorn should be allowed to stay or be forced to leave? Let us know in the comments below.

POLITICS
RICK CARUSO CAN BE THE COMEBACK KID

ARTICLE TLDR

• Rick still thinks he can win

Rick Caruso Open to Another Run for LA Mayor or California Governor

Rick Caruso, the billionaire developer who lost to Karen Bass in the 2022 Los Angeles mayoral race, is not giving up on his political ambitions. He told Politico that he is open to running again for mayor in 2025 or for governor in 2026, if there is an opportunity that makes sense1.

Caruso, who spent $104 million of his own money on his mayoral campaign, said he is currently focused on helping moderate Democrats win back the House in 2024. He plans to invest his time and money in five California congressional districts that are held by Republicans but were won by President Joe Biden in 20201.

Caruso, who switched from Republican to Democrat in 2019, said he is not interested in supporting extremists or ideologues, but rather candidates who can get things done and end the constant fighting in Washington. He also said he wanted to reach out to Latino voters, who did not support him enough in his mayoral bid1.

Caruso, who owns The Grove and other high-end shopping malls in Los Angeles, also expressed his concerns about the state of the city and the state. He said homelessness and crime have gotten worse under Bass, and that the state needs more housing and pro-business policies1.

Caruso, who lost to Bass by 10 points in November, said he still has a lot of time to decide his next move. He said he loves Los Angeles and California and wants to make a positive difference.

Will Caruso make another run for mayor or governor? Or will he stick to his role as a donor and influencer? What do you think of his political aspirations? Let us know in the comments below.