Posted on June 16th, 2022
Find below a complete transcript of this video.
What’s up fellow entrepreneurs, today I want to talk about landlords and how difficult it is to run a real estate rental business in California.
But first I’m an attorney, but I’m not your attorney. So please seek out competent legal advice for your specific legal issue.
For those of you that own, at least one rental property, congratulations, you are an entrepreneur. It takes the same skills to run a real estate business as it does to run any other business in California. Well, at least the overall skills, it’s been tough for landlords in California over the last two years.
And doesn’t look like it’s going to get better anytime soon, frankly, as of the recording of this video, California still has its rent moratorium in place. And it looks like it’ll be in place from what they say 12 months from the end of the emergency or until August, 2023, whichever comes first.
Okay. So that’ll be roughly four years that landlords have not been able to collect rent or legally evict for some of us lucky landlords. There are honorable people that still believe in paying their own way for others. California has forced them to give away their property for free. Essentially.
Can you believe that there are landlords out there that are being forced to fund the lives of other adults.
They continue to pay their mortgages and property taxes, but are not legally allowed to collect rents or evict. They’re not legally allowed to enforce the contracts that they entered into with other adults.
This is California’s solution to the pandemic, take from one group and give it to another. Now the LAPD is asking landlords to chip in even more specifically, the LAPD is asking LA’s landlords to voluntarily subsidize apartments for police recruits for two years.
Wait, what? LAPD’s budget was just increased in 2022 by 12% with an increase of 213 million to bring the total budget to 1.9 billion for 2022. That’s right. Just the LAPD has a budget of almost 2 billion and they want landlords that may not have collective rents for two years to give their recruits free rent for the next two years.
Are these people insane? What the hell are they doing with our tax dollars? The LAPD claims that they are having difficulty finding recruits because the cost of housing is too high.
In the last fiscal year, the department lost 633 officers, but was only able to hire 75 replacement officers in the current fiscal year, which ends June 30th.
The department needs to hire 740 officers. The highest number ever LAPD recruits are paid about 71,000 per year. Beginning when they start training at the Los Angeles police academy. And the average rent in LA is above $2,500 per month.
Again, where is this 2 billion budget going? If they can’t afford to subsidize house subsidize housing for their own recruits to subsidize the rent of 740 new officers at $2,500 per officer, it’s less than 1% of the new budget, ah, LA spends its money unwisely and wants business owners to bail them out.
Until next time. Be productive.
