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Writing with some notes about the on-going fires in Los Angeles and the response thereto.
- Most importantly, I want to extend my sympathies to those directly impacted. We evacuated our home one night last week in a rush. I spent the ensuing ~12 hours not sure whether our home was going to make it, and considering all of the problems that would cause in our lives. We were lucky and our home was fine. But I have at least some sense for how those who lost their homes must be feeling right now… and it’s awful.
- We have been so fortunate. So far as we are aware, none of the properties we own or manage sustained material damage from the fires. (I’m knocking on wood as I write this, so as not to anger the Real Estate Gods.)
- Am in touch with a lot of LA-area property management companies and, in general, I can tell you that the industry is behaving admirably. These companies are promptly returning security deposits and January rent to tenants whose apartments burned, offering shorter-term leases at no extra charge, racing to furnish normally unfurnished apartments, and so on.
- Some mom and pop owners and some of their agents, on the other hand, have been caught violating the state’s anti-gouging laws. I think constraining prices in the way that California does is pretty bad public policy, because it stops additional supply from coming into the market (which is what we need right now!), but it’s the law, and everyone should follow it.
- We are already hearing calls from left-wing members of the city council and the state legislature to reprise the Covid-era eviction moratorium and ban on rent increases. It will not surprise you to read that I think this would be unfair.
The displacement caused by the fires is a societal problem (with “society” being defined as one, some or all of the city, the state or country). Why should the cost of society’s response to the crisis fall so disproportionately on those citizens who happen to own rental property?
The correct response would be for the city, state and or federal governments to provide direct assistance (including, if necessary, housing vouchers, to people affected by the fires).
Finally, a plug: If you are or intend to be the long-term owner of rental property in Los Angeles for which you require management help, please reach out to me directly.
Respectfully,
Moses
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