Dear Landlords and Investors,
The principles of leverage, supply, demand, and ROI still push appreciation. San Diego has proven to be a wise location for your investment dollars. But, don’t become complacent. Don’t lose track of why you are investing, regardless of how successful you are. Dealing with unexpected issues can make or break your business. So of course, you’re right to want to understand how the current market affects your property values. You deserve expert guidance. Here are details on what you need to know now:
Eviction Moratoriums Expiring Soon
San Diego’s eviction moratorium expired on Aug. 15th. The State’s eviction moratorium will last until Sept. 30th. And the national moratorium ends on Oct. 3rd. So far, fingers crossed, none of the eviction bands will be extended.
If you need to recoup past-due rent there are a few steps you need to do before 9/30.
#1 Serve your tenants the One Time Notice from the State of California.
#2 Serve your tenants a back due rent between September 1, 2020 and September 30, 2021, a back due-rent rent 15-Day Notice to pay. Including the Declaration of COVID-19 Related Financial Distress form.
#3 If your tenant owes past due rent between March 1, 2020 and August 31, 2020, serve a Notice of Balance Due.
#4 You and your tenant MUST also begin the application for rent relief at HousingisKey.com.
We pray this end to the eviction ban is the light at the end of the tunnel. So many property owners and landlords have had issues collecting rents from their tenants for the past 19 months! And were prevented from evicting tenants who are no longer the right fit for their properties. *We can not provide tax or legal advice. Please consult an eviction attorney if needed.
Housing Shortage Solutions from the Governor
Senate Bill 9 was signed by Gov. Newsom last Thursday. Allowing infill development of 2-4 multi-family properties in neighborhoods zoned for single-family. Owners of single-family lots can now split them into two parcels and build up to 4 units. Can you say high-density development with NO parking? And what will this do to surrounding property values?
Senate Bill 10 was also signed Thursday. Now localized governments can rezone single-family parcels. Allowing as many as 10 units near public transportation centers and in urban areas.
Like many of the prior housing bills, we the people were not allowed to vote. Instead, the powers that be are making decisions that affect your property values. We will continue to follow and provide more details as they come.
Perspective is Key
The average 2-4 unit value in San Diego is now at $1,096,441 as of August ‘21. Lyle and I have noticed a trend for the past year and a half. Buyers are being priced out of higher-priced markets like the Bay Area. They are moving to San Diego for their investment property purchases.
Our most recent transaction was for a Doctor and his wife. Who purchased a turnkey single-family in Oceanside for $710k. This 4 bed. 2.5 ba. home will rent for $3,300 or more a month. Covering their mortgage payment and creating a cash flow for the family. They are moving to San Diego in a few years. Being priced out of the market where they live in San Jose, they knew it was time to purchase in San Diego. Before they were priced out of the market down here too. When I asked what a home like this would be worth in their neighborhood, they said $1.4M! Double what it is down here. Buying their next home and renting it out until they move is a smart and strategic move on their part.
Many buyers are coming to San Diego from other markets. Even though many of us locals are in sticker shock. These folks see our price points as affordable!
• Be sure to visit our YouTube channel, San Diego Investment Property. This channel keeps you connected. We’re happy to help you navigate the income property world here in San Diego!
• Please let us know who you can refer us to. Someone you know who can use what we offer.
• Stay current with the latest real estate news and market conditions. Send your current email and phone number to lyleandlynnor@gmail.com.
• We’ll set you up for monthly neighborhood market updates and a new app called Homebot. It’s a personalized home finance tool. Homebot helps you manage your biggest asset, your home!
IT’S TIME FOR YOU TO GET THE ROI YOU DESERVE.
You’ve worked hard for what you’ve earned, and you’re right to want the best experience. Be confident you have professionals on your side. We use ROI-based marketing. Rest easy knowing we use an organized system to market your property. Employing our highly targeted and proven approach like no one else is what you deserve!
Thinking of selling your property in the next 12 months? Call us today for your strategic marketing consultation at 858-218-4511.
Send us like-minded property owners you know who want to buy or sell. We promise we will take great care of them.
