Are you aware of the legislative changes happening in your backyard? It’s hard to keep up with it all, especially in today’s post-COVID environment. It feels like every day there is a new proposed change announced that will directly affect California owners. We have suggestions on how to stay in the know and how to monitior the most impactful legislation.
Do you stay up to date with the changing legislation in your city or county? Do you know what to look for and how it will affect your investments? Well, we are experts at staying in the know of how new laws can hurt or help local investors. We are giving you the inside scoop on what we are paying attention to this year.
Use these guidelines to check and see how city government will affect your property:
- Homeless initiatives – Some cities have been proactive about managing the homeless population while others haven’t. Homelessness can impact property owners in a variety of ways; crime and vandalism, increased expenses due to maintenance, trash removal, security, on-site prevention measures, customer/tenant security concerns leading to increased vacancies. How is the local government planning to help an unfortunate situation for all involved? Some cities are acquiring motels and multifamily to provide stable housing, while other cities are considering acquiring either through purchase or lease of vacant retail spaces and converting properties into housing and preventative services.
- Government participation in the operation of private property – Regardless of property type, cities across the country are taking a variety of approaches for private property ownership. Eliminating traditional zoning, eviction protections, development moratoriums, and tenant friendly city councils (no criminal screening, rent control, house rules, inspections, inclusionary tenancy) are some of the areas that will impact property performance and future valuations. Local issues were a leading driver of the flow of capital from LA County to OC and from California to landlord friendly states in 2022.
- Business Friendly – The world is smaller than it’s ever been, and we’ve seen California lose Norton Life Lock to AZ, Chevron to TX, Lucas Oil to IN, as businesses move headquarters and high-income employees to more business-friendly states. Business, Personal, Property Transfer & Sales Taxes all add up and factor into business decisions. Regardless of property type, landlords prefer successful tenants and customers with disposable income to occupy offices and apartments and spend at retail properties. Whether your city is attracting commuters who spend money on their way in and out of town, or residents who want to dwell close to work, analyzing local governments efforts to attract business has a tremendous impact on the performance of your investment.
Additionally, we recommend that you stay in touch with your local specialist. Our team shares all the latest information with our clients to make sure that they are aware of a proposed bill before it affects them. We stay ahead of the game so you don’t miss opportunities.