Daniel Bornstein of Bornstein Law has represented me, and I refer owners to him regularly. His firm just released four cheat sheets on questions apartment owners ask me all the time, and Daniel was kind enough to let me share them here.
Each one covers a situation that can affect your income, your legal exposure and, when it is time to sell, how a buyer looks at your building. They are worth saving.
1. Section 8 Rent Increases: The Two Gates
If you have tenants on Housing Choice Vouchers, a rent increase that is legal under California and local law is only half the job. The housing authority also has to approve it. Buyers will ask about this when they underwrite your rent roll.
2. Reasonable Accommodations: When the Rules Have to Bend
Fair housing laws can require exceptions to your rules for a resident with a disability. This sheet walks through how to evaluate a request, how to handle the interactive process and where an owner’s obligations stop.
3. Authorized Occupants: When Someone Lives There but Isn’t the Tenant
Someone living in a unit is not automatically a tenant, and someone left off the lease is not automatically without rights. San Francisco, Oakland and Berkeley add their own rules on additional occupants and replacement roommates.
4. The Lease Says One Thing. Reality Says Another.
Before you enforce a lease provision, look at what you knew, what you allowed and what you accepted. Taking rent with knowledge of a violation, or tolerating something for years, can change the picture.
Why this matters when you sell
Voucher rents, occupants who are not on the lease and open accommodation requests all come up in due diligence. Knowing where you stand before you list helps you avoid surprises with a buyer, and it can affect how a buyer underwrites your rent roll. For more on how buyers price a building, see How to Value an Apartment Building in San Francisco and the Bay Area.
I sell apartment buildings in San Francisco, San Mateo County, Santa Clara County and the East Bay. If you are thinking about selling, request a free valuation and I will walk you through what your building is worth.
Cheat sheets courtesy of Daniel Bornstein, Bornstein Law. With any questions, reach out to Daniel Bornstein at (415) 409-7611 or [email protected], or visit bornstein.law.
This post is general information, not legal advice.
