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The situation:
I am sick and tired of california's politics and increased COL; however, everything I have belongs in California; my house, my family (or at least what's left of them) and my dearest friends. I feel like if I do move, then I would go to a place where I am all alone. However, I am getting priced out in California. For example, my property tax bill came and it's 5 percent higher than it was last year. (and I pay roughly 6.5k a year) And if Trump's tax plans goes through, then I wouldn't be able to write off any taxes paid.
I do have enough equity to sell my house and buy a bigger place in another state; however, that means to pack up my things and leave the people I love dearly. I don't have a wife nor kids so that's a plus. However, it would be hard for me to leave. I think I am very close to getting hired on with the State of California. (well they're checking my references) If I do get this job, then chances of me staying significantly increases. I am also perusing my CPA license so I got to check the Board of other states with regards to transfer elgibility. (this is my last semester of schooling)
If I do decide to leave my house, would it be better to sell it now or rent it out? I heard some HORRIBLE stories about people renting out their houses and California seems that it favors tenants over the landlord. But I am sitting on a cash cow so should I sell now and get the money or should i gamble and rent it out? I do live in a nice area in Elk Grove and it's very quiet, very good schools, a very big recreational park but the taxes alone are very steep. Nevertheless, I am happy where I'm at but the cost/benefit gap is getting smaller to favor me staying.
There's so many changes/opportunities that I cannot process it right now.
You have no idea how much California favors tenants over landlords. You not only have Federal laws but also state and county and city laws as well and many of them are so convoluted that you don't know when you're keeping one on the Federal level yet breaking it on the city level.
I have a single family dwelling in one of the hottest areas in Los Angeles that sits empty because I just put 60K into renovating it for my elderly mother and now she won't be returning home after 10 years in assisted living. I am terrified to rent it out because all of the hoops I have to jump through to comply with all four levels of government. Now I see this ridiculous law that just came to my attention: the "service animal" or "pet companion for disabled" law.
Quote:
This overview discusses the federal laws that prohibit landlords from denying housing to individuals with mental or emotional disabilities who need companion animals to lessen the effects of the disability. The factors in proving the companion animals qualify as "reasonable accommodations" under law are also outlined.
In a nutshell you have to rent to a disabled person with a dog even if it is as big as a horse because the dog, being a "companion" for the disabled person, has the same anti-discriminatory rights as a human because it is like a human to the person who owns it. You can't charge a pet deposit because the animal is technically a human. So the dog can tear your house to shreds, do 50K worth of damage and the disable person can move out and you're stuck with the repair bill because who's going to side with a landlord against a disabled person in court???????????
Sell! Don't give yourself any headaches big enough to make you want to jump off a bridge.
Quote:
You will either have to hire a property management firm (check the CD threads for landlords' experiences with these guys)
semispherical has it right on the money. PM's are the worst scum in the real estate business. The tiny few who are good are impossible to find. I have read the contracts you sign. They take no responsibility for the quality of tenant they put in. They just want to get the house rented out as quickly as possible.
Last edited by thrillobyte; 10-14-2017 at 03:51 PM..
You have no idea how much California favors tenants over landlords. You not only have Federal laws but also state and county and city laws as well and many of them are so convoluted that you don't know when you're keeping one on the Federal level yet breaking it on the city level.
I have a single family dwelling in one of the hottest areas in Los Angeles that sits empty because I just put 60K into renovating it for my elderly mother and now she won't be returning home after 10 years in assisted living. I am terrified to rent it out because all of the hoops I have to jump through to comply with all four levels of government. Now I see this ridiculous law that just came to my attention: the "service animal" or "pet companion for disabled" law.
In a nutshell you have to rent to a disabled person with a dog even if it is as big as a horse because the dog, being a "companion" for the disabled person, has the same anti-discriminatory rights as a human because it is like a human to the person who owns it. You can't charge a pet deposit because the animal is technically a human. So the dog can tear your house to shreds, do 50K worth of damage and the disable person can move out and you're stuck with the repair bill because who's going to side with a landlord against a disabled person in court???????????
Sell! Don't give yourself any headaches big enough to make you want to jump off a bridge.
semispherical has it right on the money. PM's are the worst scum in the real estate business. The tiny few who are good are impossible to find. I have read the contracts you sign. They take no responsibility for the quality of tenant they put in. They just want to get the house rented out as quickly as possible.
Your post doesn't make any sense. You're worried about renting a home after modifying it for your disabled mother? Shouldn't that increase the potential tenant pool you have to choose from? Pretty sure this doesn't limit you renting only to disabled individuals. Even if it did, isn't that something to research and consider prior to making the modification rather than afterwards? Doesn't sound like these are problems caused by the state of CA or City of LA.
Politics are a really dumb reason to move to or from anywhere. Do you just want to meet like minded people who you can shoot the shyt with about the upcoming election or gun rights, etc? If not, the government is likely not doing anything that is meaningfully effecting your life. You could argue "CA taxes are higher than 49 other states", but then someone can counter "But this 'cash cow' you're sitting on is a direct result of living in a state with the highest property values in the nation". I'd take the cash cow over the thousand of extra tax you may pay Vs another sate 10 times out of 10. Logically, which is better, owning a high value property or avoiding what amounts to be $80 and change per month in state tax. I don't know what goes people's minds with some of this stuff.
Also, CA provides a whole lot of protections for the same people that constantly bash the government here. For example, CA "Good Driver" laws prevent a car insurance company from raising your insurance rates beyond a certain point. If you live in, say Georgia, your bill may increase by $200/mo out of nowhere - or immediately after you enter into the contract. That cannot happen in CA. The CA rent laws prevent landlords from increasing rent rates beyond 5% for each consecutive lease renewal period. This prevents landlords from using tenants as a human piggy bank, even when they are fully recovering their investment and making a profit. That's a good thing.
So, don't move because of the government. You'll just find suck things about the government in some other state that you hate equally.
Now, to your original question: Good on you for the studying to sit for the CPA exam. I have taken parts myself. Your decision is a very tough one, but I think I'd consider the rate at which the central valley is growing prior to selling. Your home is likely going to continue to appreciate with the flight of people from the bay area who are getting priced out and the potential for a major corporation to relocate in your specific area (I have read Apple and others have considered it a potential landing spot). You may consider refinancing the home to provide enough cash to move out of state and waiting a couple of years to determine if you will sell or hold. You can then still sell without paying capital gains tax.
Good luck. I wouldn't move or sell the home for the reasons you stated, in any case. Move because you found a cool new area that you love, get a great job offer or you want to try something different. Your decision will look much better in retrospect.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,345 posts, read 8,559,492 times
Reputation: 16679
Quote:
Originally Posted by sacite
The CA rent laws prevent landlords from increasing rent rates beyond 5% for each consecutive lease renewal period. This prevents landlords from using tenants as a human piggy bank, even when they are fully recovering their investment and making a profit. That's a good thing.
Could you please cite the law where rent increases are limited to 5%. That seems to have escaped many areas where rent have gone up 50 to 200%
Even though the OP hates CA, he still wants to work for the CA government? If you can't beat them, better to join them, right? Sounds like he is frustrated that the cushy government job hasn't come through yet.
Could you please cite the law where rent increases are limited to 5%. That seems to have escaped many areas where rent have gone up 50 to 200%
I apologize, but I may have completely misquoted that rule, which is actually that they must give you 30 days notice of a 10% rent increase or if more than 10%, 60 days. That or I was thinking about rent control that my friend has in SF. In any case, I was wrong. But, I did have several issues I resolved with landlords by using this, one of which resulted in a small claims award in my favor. Rent increases are discussed on page 31-
Even though the OP hates CA, he still wants to work for the CA government? If you can't beat them, better to join them, right? Sounds like he is frustrated that the cushy government job hasn't come through yet.
I have a friend who works for the state, but is a staunch republican and is completely against unions. I asked him why, if he hates them so much, that he chose to work for the government and specifically, a government entity protected by a Union. He said "I need the benefits and the stability"............both of which of course only exist because it's a government job protected by a Union. So funny.
You have no idea how much California favors tenants over landlords. You not only have Federal laws but also state and county and city laws as well and many of them are so convoluted that you don't know when you're keeping one on the Federal level yet breaking it on the city level.
I have a single family dwelling in one of the hottest areas in Los Angeles that sits empty because I just put 60K into renovating it for my elderly mother and now she won't be returning home after 10 years in assisted living. I am terrified to rent it out because all of the hoops I have to jump through to comply with all four levels of government. Now I see this ridiculous law that just came to my attention: the "service animal" or "pet companion for disabled" law.
In a nutshell you have to rent to a disabled person with a dog even if it is as big as a horse because the dog, being a "companion" for the disabled person, has the same anti-discriminatory rights as a human because it is like a human to the person who owns it. You can't charge a pet deposit because the animal is technically a human. So the dog can tear your house to shreds, do 50K worth of damage and the disable person can move out and you're stuck with the repair bill because who's going to side with a landlord against a disabled person in court???????????
Sell! Don't give yourself any headaches big enough to make you want to jump off a bridge.
semispherical has it right on the money. PM's are the worst scum in the real estate business. The tiny few who are good are impossible to find. I have read the contracts you sign. They take no responsibility for the quality of tenant they put in. They just want to get the house rented out as quickly as possible.
You just need to educate yourself on the laws. Even the fair housing laws are "fair" to landlords, too. But, you need to know your rights in order to hold your ground if you get an unscrupulous tenant trying to snow you with an unacceptable service animal.
But, no, you don't have to accept just any and every animal, just because someone claims it's a service animal. If you learn and understand the law, you can tell those who don't deserve them that they are denied and not be afraid of the consequences.
Plus, you can still be very stringent in your rental criteria, so you should never end up with a tenant who you can't sue for damage.
This only happens to landlords who don't know what they're doing, in my opinion. I used to manage apartments in Santa Clara.
I do agree with you that most property managers for hire rip off ignorant landlords. Shame, but true.
Could you please cite the law where rent increases are limited to 5%. That seems to have escaped many areas where rent have gone up 50 to 200%
Just to add to the answer, though - some cities have rent control and so rent increases can be limited. Depends on the city. Different cities have different rules about rent control. Not many cities in CA have it, and the rules really vary where it exists.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,345 posts, read 8,559,492 times
Reputation: 16679
Quote:
Originally Posted by NoMoreSnowForMe
Just to add to the answer, though - some cities have rent control and so rent increases can be limited. Depends on the city. Different cities have different rules about rent control. Not many cities in CA have it, and the rules really vary where it exists.
I understand that having been a Ca landlord for 30 years. I hadn't heard of any state laws though and was surprised to see that.
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