Posted by Kristine-CA on October 16, 2007 at 13:49:44:
Yep, you and I could get this idea done today and implemented
tomorrow. We’d have notices out by the end of next week. Classes
offered every Mon and Wed night. Not registered and licensed by Dec
31st and the citations start.
Now think about Victorville or San B county for a minute. Is that going
to happen? Kristine
making investors get business license to rent - Posted by Corine
Posted by Corine on October 15, 2007 at 08:52:19:
Hey all. Again, when I’m stumped, I turn to you. I just read this article in the Victor Valley Daily Press. Victorvill, California. It’s the high desert. This has been a huge meca for investors, including myself.
What do you think of this article? I personally don’t have the time or inclination to fly across the country for a bleeding B.S. class to obtain a business license to rent my property.
Do you think I can circumvent this with the CA RE Broker’s license I hold?
All landlords must obtain business license, go Crime-Free
KATHERINE ROSENBERG
October 11, 2007 - 6:33PM
VICTORVILLE â?? Housing fraud operations like Thursdayâ??s may soon be a thing of the past, as the city of Victorville has announced a new Crime-Free Rental-Housing Team, dedicated to investigating problem tenants and landlords.
Two deputies from the San Bernardino County Sheriffâ??s Department and two Code Enforcement officers will be dedicated to the full-time team and will work both proactively to identify problems within the rental community, as well as responding to calls for service at rental properties, said Detective Sgt. Bob Hughes of the Victorville station.
â??We wonâ??t have to do these sweeps anymore. Theyâ??re going to be doing this stuff on a weekly basis as new fraud cases trickle in,â?? Hughes said.
Authorities said that while Section 8 issues will be a facet of the teamâ??s responsibility, the main thrust behind the teamâ??s creation is to help enforce a new requirement that all landlords hold business licenses and that all rental properties in the city comply with Crime-Free Multi-Housing standards, said Karen Hunt, spokeswoman for the station.
Effective on Oct. 18, anyone who rents out a residence will have six months to attend a Crime-Free Multi-Housing seminar and to obtain a business license, or else they will not be able to put tenants in their properties, Hughes said.
â??If they attend the class, they will be given a business license. The idea is not to make it difficult to rent, it is to provide recourse for us if they violate the terms of the agreement,â?? Hughes said.
â??Once theyâ??re violated, their license will be taken away and they will have to petition the city to get it back. In the meantime, they are not allowed to rent out the property,â?? he said.
Officials said that by combining Code Enforcement and deputies on one team, they will be able to work together while providing their own areas of expertise.
Mayor Terry Caldwell agreed, and punctuated the importance of educating landlords in order to make the community safer.
â??The reality is that there are a lot of bad people that will gravitate towards rental units in general and Section 8 housing more specifically, so we have partnered with the Sheriffâ??s Department in essence to clean up the areas that seem to be a haven for that bad element,â?? Caldwell said. â??Its part of an effort to send a statement to the bad people that their presence is not wanted and will not be tolerated in Victorville.â??
Caldwell stressed the importance of requiring landlords to become business licensees, because he said it only makes sense that someone who rents a residence for profit are held to the same standards of quality as other business owners.
He also credited many local landlords with their concern for making good rental decisions, adding that many problem residences belong to absentee landlords who do not care about upholding the sense of community here.
â??The people who bought property up here solely for investment purposes, I think the only way we can communicate with them and educate them as to their responsibility is through the (Crime-Free) program.â??
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Re: making investors get business license to rent - Posted by Tai
Posted by Tai on October 16, 2007 at 10:25:05:
My advice would be to stay away from communities like
this.
years ago, I had a rental in some low-income area
where the residents were dealing drugs. My property
manager suspected this (high traffic), and we tried
to ask the tenants to leave (by buying out their
lease), to no avail.
we could not evict because they were paying rent on
time. all kinds of tenant protection laws applied.
finally there was a drug bust, where the police broke
in by breaking down the door and windows, threw in a
tear gas canister which burnt the carpet and made the
whole place smelled bad, and arrested the tenants.
I had to pay for all repairs to the house, and we could
finally terminate the lease for non-payment of rent.
to add insult to injury, the city sent a letter to
me to contact their attorney, and this guy gave me
a big lecture and warned me not to rent to drug
dealers anymore. As if I wanted to rent to drug
dealers.
so I swallowed hard, sold the property quickly and
stayed away from that town.
Re: making investors get business license to rent - Posted by Mark (SDCA)
Posted by Mark (SDCA) on October 16, 2007 at 07:10:21:
Im surprised that people on this board are surprised by this. Maybe they just aren’t buy and holders. I have business licenses in 3 cities that do nothing but “allow” me to rent my house out.
They are typically in the range of 30-50 annually for which the city sends out 2 pieces of paper (a business license and a renewal form). Profit center for the city? Check.
Moreover, in two of those cities there is also SALES tax on rental income, due either monthly or quarterly. Profit center for the city? Check.
I get absolutely nothing for any of this. I just do my best to pass it on to the tenants and encourage them to complain to the city.
(And if you aren’t under Prop 13, check your property tax bills lately? Same story, different government entity. Mine up 13.7% this year.)
As for your questions:
No, your broker’s license will not suffice. You need a city business license just like every other business in the city. Go to a lot of hardware stores or restaurants and they will have then displayed.
It’s definitely constituional. Why would cities NOT have the right to regulate businesses operating within the city limits? And you ARE running a business, just like the lady next door running a daycare center out of her home.
GL,
Mark
Looks like RENTER(s) will like it! Market UP? - Posted by Truth Teller
Posted by Truth Teller on October 15, 2007 at 15:25:05:
If I were to pick a place to live I would like to rent in a Place where the Landlord had to acknowldege that they are cooperating with the idea that there should not be any CRIME allowed in their property and that if CRIME occurs that they Should have the Landlord acknowledge to problem tenant and make them move!
Re: making investors get business license to rent - Posted by Mary (CA)
Posted by Mary (CA) on October 15, 2007 at 09:39:58:
Maybe if all the landlords pull out of town, the city can deal with all the foreclosed and vacant buildings instead. (e.g. I won’t buy in SF, Berkeley or any other rent controlled area, just out of principle)
Seriously though, sounds like there ought to be some kind of constitutional issue here (either US or CA), but I’m totally blank for the moment.
Mary
Re: making investors get business license to rent - Posted by Corine
Posted by Corine on October 16, 2007 at 08:52:29:
Hum. I guess your right. I don’t mind applying for a business license, but I do mind having to fly across the country spending valuable time…and expense going through a silly afternoon class on crime. As a RE Broker, were very aware about dealing in transactions where crime is involved. I don’t need a city to baby sit me on this point.
Re: making investors get business license to rent - Posted by Gene
Posted by Gene on October 16, 2007 at 10:16:36:
With or without these rules…Victoville is going to be a hot spot of foreclosures in the area.
The city is going to be hit hard when people start contesting their property valuations and prop tax incomes starts to drop…I am sure they will look for other ways like this to increase their revenue.
Re: making investors get business license to rent - Posted by Corine
Posted by Corine on October 15, 2007 at 15:27:29:
I’m not talking about rent control. I’m with you there also. I would never buy in a rent control area either.
It doesn’t seem very constitutional to me either. I mean, where’s my bundle of rights and what I can do with my property. As long as it doesn’t hurt anyone or peoples property values are not affected.
I’m surprised this posting hasn’t received more response. Can you imagine that s—. Flying 3,000 miles to attend some awful meeting to get a business license. I’ve got to find a way out of this.
It’s ridiculous.
Re: making investors get business license to rent - Posted by Kristine-CA
Posted by Kristine-CA on October 15, 2007 at 14:02:44:
Mary: I know it sounds like there is something wrong here, but I
wonder what it is, legally speaking. I am totally amazed that Measure
EE in Oakland is constitutional–it requires landlords to keep their
properties in rent service forever. The only way to get rid of a tenant is
for non-payment. There is no legal termination of the lease allowed.
Requiring a homeowner who collects rent to become a licensed…I’m
not sure how or what defines “running a business.” I think the City
may have a lot of work to to. I’m guessing that licensing and
requirements of licensing may be more complicated than they think.
Victorville is headed for the very worst of the fallout from foreclosures.
The city will be probably too busy dealing with vacant properties and
code violations within the year to actually move on this licensing thing.
Kristine
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Re: making investors get business license to rent - Posted by Mark (SDCA)
Posted by Mark (SDCA) on October 16, 2007 at 10:19:26:
On that issue, I would call them and see if there are alternatives. One city I worked with encouraged (but did not require) investors to sign crime-free addenda.
It came with a pamphlet and various papers(about 30 mins of reading of time total). Ask if you can do somehing like that in order to participate in the program.
Agree that required class = stupid.
GL,
Mark
Re: making investors get business license to rent - Posted by Kristine-CA
Posted by Kristine-CA on October 15, 2007 at 17:07:46:
Corine: my guess is that you are many months if not years away from
attending a required meeting in Victorville. The ideas put forth in the
news story are the city’s goal, correct? They still have to pass it as law? I
believe there will be hearings on this one. These will be well attended
hearings with lots of loud voices and cussing to beat the band. Now
those might be worth attending. Kristine
Re: making investors get business license to rent - Posted by Bob Smith
Posted by Bob Smith on October 15, 2007 at 15:39:17:
Leases don’t expire on Oakland? The tenant has an automatic right of renewal, forever, and they don’t have to pay anything for it? That’s insane! Oakland has rent control, doesn’t it? Just another reason not to do business there.
Re: making investors get business license to rent - Posted by Gene
Posted by Gene on October 16, 2007 at 10:25:20:
Hard to tell how this would play out…
I mean…if I was a local large landlord and I would fight for the class to be required. Why - because it would be much harder on my competetion than it would be for me.
Obviously the locals will probably think its a good idea. I mean…they probably aren’t too happy with what out of towner’s have done. Many areas are like this…I used to live in Flagstaff AZ…every one there blamed all their problems on evil Cali out of state property owners. It was almost comical. I could see a bit of this attitude in the Victoville area.
Out of area owners likely will not put up much of a fight. Its not easy to do so.
Local builder will probably fight it the hardest. Speculators are still a big customer for them.
Re: making investors get business license to rent - Posted by Kristine-CA
Posted by Kristine-CA on October 15, 2007 at 16:05:12:
You should check out the actual text of Measure EE or whatever it’s
called. It was passed a few years ago and it is absolutely amazing what
is required. You can terminate a tenant lease or agreement only if you
are moving into the property. And there are some allowances for your
relatives (elder parents, etc) If you are moving them in. If you want to
do major repairs (the way everyone thinks you can get around it), you
must offer the unit back to the previous tenant, with the mark-up
being controlled by this that and the other thing. So tenant has first
right of refusal.
I tend to believe that people tend to blow things out of proportion and
without all the information, but when I actually checked on it I couldn’t
see a way around it. Keeping one’s property in rental service
potentially forever? That’s way beyond the imposition of rent control/
rent stabilization, IMO.
The Oakland City Council sites the lack of affordable available rental
property as the reason for the measure. At the same time Oakland
experiences high vacancy rates in many areas. What’s a landlord to do?