f you’re looking for a market to invest in rental properties at – California is on the top. The trends now in California are to buy up foreclosed homes, fix them up and then resell them for higher price or renting them out.
There has been a steady shift since to 2006 from home ownership to rental. That is shown as a 5% decline, 60% to 55% in homeownership statewide over the past 5 years and that percentage is continuing to drop. This is compared to the national average drop of nearly 3%. These are the steepest drops in ownership America has seen since World War II.
We are even likely to see these numbers increase. If you think about it – people right now who are struggling with record breaking unemployment rates aren’t going to opt for making mortgage payments and risk foreclosure when they can easily rent at a much lower risk to them. It can be assumed that at the current rate of decline that by 2016 California will be far below 55% ownership, which is close to the state’s historic low of 51%.
New Laws for Property Owners
If you read above you know there is a growing decline in homeownership – but that doesn’t mean that no one owns these homes. If you’re a commercial property owner or are aspiring to be one you might be overwhelmed at the wealth of opportunity there is for you. However, you’ve got to make sure you are fully equipped and capable of managing the properties.
Even Warren Buffet said he would be buying out foreclosed properties if you knew how to manage them properly.
Being a manager means keeping up to date with the changing property laws. This year, 2012, is now different and can attest to the many changes.
This law begun in January 2012 and it states that residents could post political signs with the required dimensions. And landlords now have the right to restrict the use of the signs to a certain number of days either before or after an impending election.
As of July 2012 landlords who own 5 or more units are required to have recycling available for their residents.
Certain single-family homes are now required to have water-conserving fixtures by 2017, following are multi-family homes by 2019.
As of January 1, 2012 landlords have the right to establish smoking restrictions but are not required to.
Carbon Monoxide Detectors
Single-family homes that use fossil fuels for any of their daily routines must now include carbon monoxide detectors. This law is expected to take effect for multi-family homes by 2013.
These are just a few of the updated California laws. If you’re a seasoned professional property manager or just recently started taking advantage of the declining homeownership rates you must make sure to stay up to date on the latest property laws. This is critical if you don’t want to be charged fines or have your licensee taken away.