Thinking smartly and strategically as we all hopefully get over the hump

Our calculus on tenant buyout agreements has evolved over time

There has been a lot of buzz in the media lately about windfall payments made to tenants in order to effectuate a vacancy.

Technically called a tenant surrender of possession agreement, many landlords are spooked by the term “buyout agreement” because it implies that a large sum of money has to be forked over to the outgoing tenant. Not necessarily.

In fact, rental property owners do not have to break the bank.

Other concessions can be made such as forgiving COVID-related rent debt. We want to think smartly and strategically about negotiating buyouts.

Inequity exposed: A scholarly report confirms that small rental property owners who account for half of affordable housing stock are not “greed-fueled speculators” as demonized in the media. They are hanging on by a thread.

We have always known that small property owners are purveyors of the largest segment of safe, clean, and affordable rental housing and are just trying to make a living.

If there was any doubt, the UC Berkeley Terner Center for Housing Innovation puts these reservations to rest.

THEIR FINDINGS

In case you missed it

Thanks to hundreds of like-minded landlords, property managers and real estate professionals in our community who attended our July 27th webinar on new changes ushered in by AB 832. You can watch a replay here.

Bay Area's COVID-19 rents plummeted - but not for everyone

As the economy picks up, some landlords are itching to raise rents. The optics of rent hikes as many tenants are getting back on their feet are not ideal, as this article illustrates.

READ ON ›

Supervisor juices proposed housing legislation to allow more homes

San Francisco's real f-word - fourplexes. Some politicians and NIMBYs are infuriated that fourplexes are in vogue and proposals to allow them are gaining momentum.

READ ON ›

Thanks to all of our valued clients, colleagues, industry partners, and other friends for your continued engagement.

After going through a lot together, we can now see a horizon where we return to more traditional ways of managing landlord-tenant relationships on September 30th.

Let's hope that the new delta variant does not push this date further into the future. More importantly, we hope that everyone remains safe and that we slay the COVID beast.

Should you need any legal assistance to power through your real estate challenge, of course, our firm renews our commitment to assist.

Godspeed.

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