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LAWS AND PUBLIC POLICY SURROUNDING RENTAL PROPERTIES LOOK LIKE A
IMODERN-DAY ROBIN HOOD By Daniel Bornstein, Esq.
n many respects, landlords are called and became landlords, renting the homes out for upon to use their properties for the more than residents would have otherwise paid in public good and there is a price to pay if rent or for a mortgage payment.
properties are not used for the benefit of
all.
contempt for the rich, feudal monasteries plummeted to the lowest levels in decades.
Enter the foreclosure crisis and investors converted
the glut of repossessed homes into rental In old ballads, Robin Hood was famous properties. After corporations gobbled up hundreds for his generous woodland feasts. With a and thousands of homes, owner-occupied homes
of his time, what he took from England’s landowners, he would share among the poor because of the conviction that private property should be used for the
public good of all.
Fast forward from the Sherwood Forest of the fifteenth century to 2020 and Robin Hood can be a spur to reflection on California laws that have a deep distrust for corporate entities, impose a limit on profit, and look to level the playing field in home ownership while penalizing owners who are not good citizens conscientious of the wider economic order.
THE CONTEMPT FOR CORPORATE HOMEOWNERS HAS BEEN LONG IN THE MAKING
In his book, “Underwater: How Our American Dream of Homeownership Became a Nightmare,” Ryan Dezember observed that in the wake of the 2008 financial crisis, corporations went on a buying spree
To prevent another corporate takeover of housing, lawmakers enacted many safeguards.
CORPORATE OWNERS DO NOT ENJOY EXEMPTIONS FROM STATEWIDE RENT CONTROL
While single-family homes are typically exempt from the Tenant 􏰀rotection 􏰁ct of 201􏰂 (􏰁􏰃-14􏰄2), this is not the case if the property is owned by a corporation, real estate investment trust, or LLC in which at least one member is a corporation. Lawmakers were wary of these ownership structures because the actors were likely to be sophisticated enough to take advantage of loopholes and go on a buying frenzy.
FORECLOSED HOMES ARE NO LONGER ALLOWED TO BE BUNDLED TOGETHER AT AUCTION AND SOLD TO A SINGLE BUYER
Dubbed “Homes for Homeowners, Not
Please turn to page CS-23
More than a practitioner in landlord-tenant law, Daniel Bornstein is the Broker of Record for Bay Property Group, a property management company that protects and optimizes the investments of landlords. He is also renowned for his educational seminars and is called upon as an expert witness in complex real estate litigation matters. To avoid or resolve friction within rental units and cauterize risk, Daniel is happy to dispense informed advice to owners, property managers, and other real estate professionals looking to survive and thrive in today’s challenging and litigious rental housing market. Call 415-409-7611 or email daniel@bornstein.law.
CS-18 MARCH 2022 - APARTMENT MANAGEMENT MAGAZINE