Multi-Family Insights

Critical 2024 Regulatory Updates for Apartment Investors

In the fast-paced world of multi-family real estate, understanding the latest regulatory changes and maintenance updates is crucial for safeguarding your investments. Discover three essential developments that could significantly impact your multi-family properties. Stay informed and strategically enhance your portfolio’s value with our expert insights on the evolving real estate landscape.

 Balcony Inspection Laws (Deadline: January 1, 2025):

• • Mandatory Inspections Required: California law (SB 721) mandates inspections of balconies, staircases, and other wood-based elevated structures in multifamily buildings.
  • Deadline Approaching: All inspections must be completed by January 1, 2025, and subsequently every six years.
  • Qualified Contractors Only: Inspections must be conducted by licensed general contractors holding A, B, or C-5 licenses to ensure compliance.
  • Avoid Fines: Non-compliance can result in fines up to $500 per day.
  • Act Now: It is crucial to schedule your inspection promptly to address any necessary repairs before the January 1, 2025 deadline.

 Justice for Renters Act: Potential Shift in Rent Control Laws

• • Urgent Ballot Measure: California’s November ballot measure proposes repealing the Costa-Hawkins Rental Housing Act.
  • Stricter Rent Control: If approved, this would enable local governments to enforce stricter rent control measures.
  • Limits on Rental Adjustments: Potential restrictions on adjusting rental rates post-vacancy.
  • Impact on Revenue: This could significantly impact your revenue and the economic viability of property improvements.
  • Stay Informed: It’s important to stay informed and understand how this measure could affect your property management strategy.

 Electrical Panels: Urgent Safety and Insurance Issue 

• • Outdated Panels Identified: Properties with Zinsko, Sylvania, and Federal Pacific panels, typically pre-1980s installations, pose fire risks.
  • Insurance Implications: Risk of insurance denial for properties with these high-risk panels.
  • Audit and Upgrade: Urgently audit and plan upgrades for your property’s electrical systems.
  • Safety and Compliance: Enhance tenant safety and maintain compliance with insurance and safety regulations.
  • Financial Planning: Allocate budget for necessary electrical upgrades to mitigate risks.

As your dedicated partner in multi-family real estate investment, we are committed to guiding you through these important updates and ensuring your portfolio remains compliant and profitable. Call us today to explore how we can collaboratively address these developments, ensuring your investments continue to thrive in a changing market landscape.